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Fri, Mar 16, 2012

India Unsatisfied With Compensation Offer For Delayed Dreamliner

Seeks An Increase In The $500 Million Offer From Boeing

The Aviation Ministry of India says Boeing should offer more than the $500 million on the table for three years of delays in delivering the Dreamliner to Air India. And they say if the deliveries are delayed further, the compensation should continue to go up.

Air India had ordered 27 of the composite airliners in 2005. They were originally supposed to be delivered in November of 2011.

The Economic Times of India reports that Boeing has offered to pay half a billion dollars in compensation, but the Indian Civil Aviation Ministry says that's not enough. An official said the government will "try to get as much as possible" to cover losses incurred by Air India as it waits for its Dreamliners.

Meanwhile, at the Hyderabad Air Show on Wednesday, Boeing reportedly showed off a 787 in Air India livery. The first of Air India's Dreamliners is now scheduled for delivery in May.

FMI: http://india.gov.in/sectors/transport/ministry_civilaviation.php

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