Air India 787 Compensation Could Include Price Reduction

Air India expects to receive a compensation package worth as much as $1 billion from Boeing for delayed delivery of 787 long-range aircraft on order that could be in the form of a deduction from the total cost of the 27 787s ordered by the national carrier and in discounts on future orders, says a Civil Aviation Ministry official. While the actual compensation figure has not been publicly disclosed, Aviation Minister Ajit Singh says a package has been worked out with the U.S. manufacturer and accepted by the Air India board. India now is seeking legal opinion on how to move it forward. A government official, speaking on condition of anonymity, tells Aviation Week the deal is valued up to $1 billion. The package is now awaiting approval from the Cabinet Committee on Economic Affairs, a panel of ministers ...