Boeing in compensation row over delays

Manufacturer clashes with Indian government and Air India

Boeing is facing another problem related to the delayed deliveries of the 787 Dreamliner, with the Indian government claiming that it had agreed to pay compensation to state-owned Air India for the delays. Air India ordered a number of planes from the manufacturer in 2005, including 27 Boeing 787s. Delivery of the 787s has been delayed for three years.
Prashant Sukul of India’s Ministry of Civil Aviation claims that “two weeks back they agreed to pay” $500 million. But Boeing denies such a deal.
Jim Albaugh, Boeing CEO: “We don’t comment on deals that we’ve done. But I can tell you we’re not writing anybody a cheque for $500 million.”
Despite the delays, Boeing has received more than 800 orders for the fuel efficient aircraft, which airlines want to buy to reduce the burden of high oil prices.


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