The issue of how much compensation Air India should seek from the US-based aircraft manufacturer, Boeing, has been referred to the Government.
The airline is entitled to compensation as the delivery of the aircraft has been delayed by four years eight months.
The decision to refer the matter was taken at the airline board meeting which was held here on Monday. Sources declined to quantify the amount being sought on grounds of confidentiality clause in a commercial agreement.
Interestingly, deposing before a Parliamentary committee, the airlines former Chairman and Managing Director, Mr Arvind Jadhav, had said, “We have slapped a compensation claim of $710 million. Obviously, they have confirmed $145 million they will pay as compensation for the delay and so we have tried to push the entire delivery.”
The Parliamentary report was made public in March 2010.
In August 2010, official sources told Business Line that Air India has already written to Boeing seeking almost $800 million in compensation for the delay in delivery of the B 787. The airline has also sought $40 million that it has paid as pre-delivery payment for some of the aircraft.
The list price of the Boeing 787 is about $190 million although what an individual airline pays varies.
Air India has ordered 27 Boeing 787 aircraft.
On the issue of whether Air India will be able to take delivery of the first 787 aircraft till the compensation amount is fixed, sources indicated that technically all issues should be firmed up before the delivery papers are signed by an airline.
Air India is expected to take delivery of the first aircraft at the end of this month or early next.
The compensation amount to be paid is decided after taking into account the delay and the amount of revenue that the airline would have generated if the new aircraft had joined the fleet.
Air India, like other global airlines seeking compensation from Boeing for the delay in delivery of the new aircraft, will not get the compensation fund in hand. Instead the compensation amount will be adjusted against future deliveries that have to be made to the airline.