Article Posted on : - Aug 12, 2010

NEW DELHI (PTI): Air India Wednesday said it has asked US aircraft producer Boeing to enhance the compensation for delaying the delivery of B-787 Dreamliner planes to USD 840 million from USD 710 million sought earlier.

Due to the delay in Boeing's delivery schedule, Air India is also seeking the return of its pre-delivery payment of USD 240 million along with interest on it.

"We have given them a notice to compensate us for the delays. We are their customers," Air India CMD Arvind Jadhav told PTI here.

Airline sources said that the national carrier had slapped a notice demanding USD 710 million a year ago, which has been revised to USD 840 million as per the calculations this month.

The National Aviation Company of India Limited, which runs Air India, had in 2006 placed orders for a total of 68 aircraft, including 27 Boeing 787-800 Dreamliners, with the Boeing Company.

As per the original schedule, Boeing was to deliver the first Dreamliner in May 2008. Air India is now likely to get delivery of the first aircraft by second quarter of 2011.

When contacted, Boeing officials refused to comment on the matter.

In case of any further delay, Air India sources said the rate of compensation would further rise.

They said they would seek additional compensation on account of changes in the aircraft's specifications, including its reduced range and enhanced fuel burn.

The performance guarantee of the B-787s "are no longer valid" as the specifications of the plane has been changed.

So, the airline could seek compensation on this count too, the sources added.

In March this year, Air India had slapped Boeing with a USD 710 million compensation claim for delay in deliveries of the Dreamliners.

The Air India chief had then told a parliamentary panel that while the airline had demanded USD 710 million as compensation, the US aircraft manufacturer would pay only a fraction of the amount -- USD 145 million.

"The deliveries of Dreamliner 787 should have been complete by now. But it got delayed completely and we have slapped a compensation claim of USD 710 million," Jadhav had told the Committee on Public Undertakings.

"Obviously, they have confirmed USD 145 million they will pay as compensation for the delay and so we have tried to push the entire delivery..." Jadhav had said.