Boeing agrees to pay Air India $500 mn as compensation

Boeing agreed to the payment two weeks ago,Prashant Sukul,joint secretary,civil aviation,told reporters here on Wednesday.

According to Air India chairman Rohit Nandan,it will receive seven of these planes by March next year. The aircraft should have come to us in 2008. Our turnaround plan,route economics and profitability are based on it, he said.

Cash-strapped Air India has outstanding dues of Rs 2,500 crore to oil marketing companies and owes about Rs 1,200 crore to airports.

Dinesh Keskar,Boeings senior vice-president,sales, Asia Pacific and India said the company has over 100 such planes to be delivered in the next 4-5 years. We will be delivering the Dreamliner by next quarter besides 27 Boeing 787 aircraft in a phased manner, he said.

Boeing is scheduled to start its aircraft maintenance,repair and overhaul (MRO) facility in Nagpur toward the end of this year. The company had offered to set up the facility in return for Air Indias order for 64 Boeing planes signed way back in 2006.

FE