Air India will receive seven Boeing 787 Dreamliners by March 2013, airline chairman Rohit Nandan said at the sidelines of the India Aviation air show in Hyderabad on Wednesday.
Originally due for induction in 2008, the deliveries have been delayed by over four years. Air India and Boeing are also negotiating a compensation for the delays. According to a senior government official Boeing has agreed to compensate the airline about $500 million dollars for the delay but the government is expecting close to a billion dollar.
"The first 787 is expected to be delivered in May,'' Nandan said. "The aircraft should have come in 2008. Our turn around plan, route economics and profitability is based on it,'' he said. The union cabinet is expected to take a decision next week on the induction of the plane.
Air India has selected General Electric Genx engine for the aircraft and the engine is still to receive a type certification for the 787. A government official said the delivery could get postponed as the engine is still to receive a certification on a B-787 plane. The engine has undergone trials and Boeing secured a special permission from US Federal Aviation Administration to fly the GE-engine fitted plane to India.
Air India is also expecting Rs 5500 crore equity infusion from the government. This will go towards payment of dues. Of that Rs 2,500 crore will be paid to oil companies, Rs 1,200 crore is due to be paid to airport operators and Rs 580 crore will be for employee salaries, Nandan said.
