Air India should be compensated for Boeing 787 grounding: Minister

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Civil Aviation Minister, Ajit Singh
Civil Aviation Minister, Ajit Singh

Air India would be entitled to compensation from Boeing for the grounding of the six Boeing 787 aircraft (Dreamliner) in Air India’s fleet, Civil Aviation Minister Ajit Singh said on Friday.

“The problem will entitle Air India to some compensation but we need some clarity on the issue before anything can be said,” the Minister told newspersons a day after Air India grounded its entire fleet of Boeing 787 aircraft. Air India is already seeking compensation from Boeing for the over three-year delay in delivery of the aircraft.

Asked if there was any move to prune the number of aircraft ordered or cancel the deal, the Minister said no decision had yet been taken. Air India has ordered 27 Boeing 787 aircraft. The first six entered commercial service in September 2012, while the last six joined the fleet just three days before the grounding.

Air India had ordered the Boeing 787, the latest civilian aircraft in operations, with a view to turning around the airline’s fortunes. In the October-December 2012 quarter, the Boeing 787 earned a revenue of Rs 172.7 crore, including Rs 88.3 crore from domestic operations and Rs 84.4 crore from international operations.

(This article was published on January 18, 2013)
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