Air India will refuse to take delivery of any 787 Dreamliners until Boeing agrees to a compensation deal for a three-year delay on the aircraft, an Indian government minister said yesterday.
The announcement throws into question the state-run airline’s plans to take delivery of its first 787 this month. The money-losing carrier has ordered 27 of the fuel efficient jets, which were initially scheduled to begin delivery in 2008.
“We will have to decide on a compensation mechanism before taking delivery,” Indian Civil Aviation Minister Ajit Singh told reporters in New Delhi on Tuesday, Agence France-Presse reported. Singh declined to specify the amount the state-run airline would seek.
The two sides are believed to be far apart on the terms of a deal, with Indian officials having said the carrier may seek as much as $1 billion in compensation for the delay. Two years ago Air India told the country’s parliament that it wanted $710 million in compensation while Boeing was offering $145 million.