Business Standard

Air India's three Dreamliner aircraft lying idle in US

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Press Trust of India New Delhi

The national carrier is expected to take delivery of the aircraft only after the Cabinet Committee on Economic Affairs (CCEA) approves an agreement on the compensation package for Air India from Boeing for a four-year delay in delivery of Boeing 787 Dreamliner.

Though a Cabinet note on the issue was moved by the Civil Aviation Ministry several weeks ago, official sources could not confirm by when the matter would be taken up.

The Air India Board had on May 28 approved an agreement with Boeing on the compensation package and forwarded it to the government for approval.

Industry sources said any delay in taking delivery of the aircraft could also cost the airline. Globally, the final sale price of an aircraft is decided on the first of every month, after taking into account escalation in terms of depreciation and other factors.

 

Boeing, therefore, could be well within its rights to seek a higher price for the aircraft if delivery is pushed any further, the sources indicated.

The national carrier had placed orders to buy 27 B-787s in 2005 and as per the original schedule, the US aircraft maker had to commence the delivery of these aircraft from September, 2008. But their delivery was delayed due to various factors, including labour trouble in Boeing.

In spite of this delay, the first aircraft was ready for delivery by May end. It was also displayed at the Hyderabad air-show in March.

The first plane to roll out of Boeing's newest assembly line in North Charleston in the US was also made for Air India and painted in its livery. Thereafter, the third plane was readied in Seattle. MORE

  

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First Published: Jul 08 2012 | 11:35 AM IST

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