Boeing To Deliver USD$17 Bln Of Planes To India

Boeing will deliver 100 planes worth USD$17 billion over the next four to five years in India, the president of its Indian operations said on Tuesday.

"We clearly want to extend our footprint in India," Dinesh Keskar, president of Boeing India, told reporters at the launch of Boeing's research and technology center in the southern city of Bangalore.

Last year Boeing had projected India would need 1,001 aircraft worth more than USD$105 billion over the next 20 years and Keskar said the forecast was still valid despite an economic downturn.

Boeing has not seen any cancellations of its orders for civilian aircraft from Indian carriers, though Jet Airways deferred the order of two aircraft last year, he said.

Boeing and Airbus have seen new orders for planes slump as many major economies have slid into recession.

DREAMLINER COMPENSATION

Boeing will pay compensation to national carrier Air India and Jet Airways for the delay in delivery of the 787 Dreamliner, Keskar said, but declined to quantify.

Rival Airbus was forced to pay hundreds of millions of dollars in compensation after its A380 superjumbo fell two years behind schedule. Now Boeing may face similar claims.

More than 50 airlines are waiting for 892 Boeing 787s, worth a combined USD$145 billion at list prices.

Earlier this month Boeing said it was working towards the first delivery of the delayed 787 in the first quarter of 2010. It said it was on track to make its first test flight of the aircraft in the second quarter of 2009.