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Boeing Offers Air India $24M for 787 Issues, Air India Wants More

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To make amends for the losses suffered by Air India due to difficulties with the 787-8 in its fleet, Boeing is offering $24 million in compensation, which is half of what the carrier asked for.

Boeing is offering Air India $24 million in compensation for losses resulting from the grounding of the carrier’s 787-8 Dreamliner fleet, but Air India wants more. According to The Hindustan Times, Air India had 318 mechanical-related delays with its Dreamliners in the first half of 2014. Boeing did not comment on the offer of compensation.

The state-run airline, which is currently undergoing restructuring, announced Boeing’s offer in the minutes of its commission meetings. The acquisition of 27 Dreamliners, initially ordered in 2006, is key to Air India’s restructuring. To-date, 14 of the aircraft have been delivered.

Air India demanded $48 million in compensation from Boeing, according to The Hindustan Time. That figure was determined by calculating lost revenue, the interest on aircraft loans while the Dreamliners were grounded, as well as the expense of retraining pilots and damage to the fleet’s reputation. Air India has also accused Boeing of understating the aircraft’s delivery weight and claims the aircraft do not meet fuel-efficiency expectations.

The carrier previously received compensation from Boeing for “late delivery” in 2012, according to ch-aviation. In August, Air India asked Boeing for additional compensation due to repeated glitches in the aircraft. At the time, the carrier even asked Boeing for spare aircraft to be available at its Dreamliner destinations, The Economic Times of India reported.

Air India has requested the country’s Ministry of Civil Aviation send an official to the negotiating table with Boeing, hoping for more than the $24 million that’s currently being offered.

[Photo: iStock]

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