Air India Wants Compensation Before 787s

May 29, 2012

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State-owned Air India will not take delivery of any 787 Dreamliner aircraft from Boeing until the two parties agree on a compensation package for a delay, India's civil aviation minister Ajit Singh said.

The loss-making Indian carrier, which was supposed to take delivery of the first of 27 787s by the end of May, is seeking nearly USD$1 billion in compensation for the delayed aircraft.

Air India is studying all legal options including arbitration in case the two parties fail to reach an agreement, Singh said, while declining to say how much compensation Air India was seeking.