'Boeing to pay $500m to Air India for Dreamliner delay'

[Harry Potter]

'Boeing to pay $500m to Air India for Dreamliner delay'
PTI | Mar 14, 2012, 05.13PM IST

HYDERABAD: Aircraft maker Boeing has agreed to pay USD 500 million as compensation to Air India for delaying the delivery of Dreamliner aircraft, according to a senior Civil Aviation ministry official.

"The compensation demand from Air India is one billion dollars. However, Boeing has agreed to pay USD 500 million as compensation for the delay," Prashant Shukul, Joint Secretary in the Ministry of Civil Aviation told reporters on the sidelines of India Aviation 2012 here today.

The government is trying to push Boeing to pay more, he added.

State-run Air India has sought a compensation package from the US aircraft maker for delay in the delivery of Boeing 787 Dreamliners.

The package would be a mix of both discount in services and cash, a senior official had said earlier.

Air India had placed orders for 111 aircraft at an investment of over USD 13 billion with Airbus and Boeing in 2006 to replace its ageing fleet and leased planes.

Air India had ordered 27 Dreamliners and Boeing failed to stick to the delivery schedule. As per the original delivery schedule, Boeing was to start delivery from September 2008.

However, it failed to meet the timeline due to issues with its vendors and industrial dispute with workers. The company has now rescheduled the delivery to second quarter of 2011.

Dinesh A Keskar, senior vice president, sales Asia Pacific and India, Boeing India, refused to comment on the development.

"The issue is between the company and Air India. It will not be discussed outside," Keskar said in press conference today.

Keskar said the delivery of Dreamliners to Air India will start in the next quarter and the pilots are being trained.

'Boeing to pay $500m to Air India for Dreamliner delay' - The Times of India

 

[JohnyD]

In service industry its a common practice to give service credit to customer in case of delay in delivery or missing on any key KPI....in most cases service credit goes above 10% of total cost of the service….In this case, the delay is very long and the compensation that Boeing has agreed to pay is peanut considering the size of the deal..

 

[kriish]

imagine if France and Russia follows the same they should give scorpion submarine line and INS Vikaramaditya for free....

 

[acetophenol]

What if kingfisher too had some dreamliner order placed?this money would have been a life saver for them.,atleast for a while

 

[tvsram1992]

I wonder how much money we would have got if Russia paid us for delays .

 

[forcetrip]

I think the FAA grounded all Dreamliners recently because of fire concerns within the batteries.

 

[illusion8]

I think the FAA grounded all Dreamliners recently because of fire concerns within the batteries.

NEW DELHI (Reuters) - The Directorate General of Civil Aviation (DGCA) will decide on whether or not to ground national carrier Air India's Boeing Co Dreamliner jets after the U.S. company submits a report on the aircraft's safety, the regulator's head said on Wednesday.
Boeing is expected to submit a report on the Dreamliner by the end of Wednesday, Arun Mishra, Director General of Civil Aviation told reporters, after a series of incidents heightened safety concerns over the plane.
The regulator has formed a team to work with Boeing to judge the safety of the aircraft, Mishra added.

DGCA: Dreamliner decision after Boeing report - Yahoo! News India

 

[forcetrip]

The report is out. FAA grounded their fleet. Dont have access to the article, saw a ticker on Digg today.