Dreamliner: India Govt to decide compensation from Boeing for delay

New Delhi, May 29 (PTI) With the first Boeing 787 Dreamliner for Air India ready to be flown in, the Indian government today said it would soon decide on the issue of compensation from the US aircraft manufacturer for delaying its delivery before inducting the first of these planes. Civil Aviation Minister Ajit Singh said the aircraft would not be taken till Air India and Boeing clinched the compensation package for the nearly four-year delay in delivery of the Dreamliner, though official sources said a decision on the matter would be taken shortly "at the competent level", indicating the Indian Cabinet. "We will not be in a position to take delivery of the aircraft as the compensation package for the delay in delivery of the plane has not been decided as of now," Singh told reporters here. Air India's Board had yesterday held a detailed discussion on the issue of compensation, including the amount to be claimed and how. It had then decided to forward its decision to the government for approval. India's state-owned national carrier had placed an order to buy 27 B-787s and 41 B-777s in 2005 and, as per the original schedule, the US aircraft maker was to commence delivery of these aircraft from September, 2008. Delivery of the Dreamliners was delayed due to various factors, including labour trouble in Boeing. The sources said the compensation package would not mean Boeing writing a cheque to Air India, but the most likely process, which is yet to be finalised, would be to adjust the price with the delivery of each aircraft. The American aircraft major was bound by the agreement it has signed with Air India on the issue, the sources said, adding opinions of the ministries of Finance, Law and Commerce, among others, would be sought before the government took a decision. The sources refused to divulge the amount of compensation being sought on grounds of confidentiality in negotiations. PTI