US aircraft maker Boeing has offered to pay $500 million to Air India as compensation for the delay in deliveries of new-age B-787 Dreamliner aircraft. The package is more than three times what Boeing was willing to pay earlier, but the civil aviation ministry says it is still inadequate as per a report in ET.
Dreamliner is a 250-seater aircraft made of composite materials and is considered very fuel-efficient. The multi-version aircraft has a list price between $140 million and $200 million. Air India says the delay in handing over the jets has caused the airline both opportunity and operational losses amounting to over $1 billion.
The official quoted above said the compensation Boeing plans to offer includes $145 million in liquidated damages, which are part of the contract and should not be included in the compensation value.
"Air India is not only eligible for liquidated damages, but also for the loss in revenue it suffered because its expansion plans were impacted due to the long delay," the official said.
Air India says it had planned to fly new routes to Australia and Africa, besides expanding services to the US with the B-787s.
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