GoM to take up Boeing compensation issue tomorrow
GoM to take up Boeing compensation issue tomorrow
According to sources, the GoM will look at the terms of compensation and the amount to be paid by Boeing.

New Delhi: A Group of Ministers, headed by Home Minister P Chidambaram, would take up on Wednesday the issue of compensation to be paid by US aircraft maker Boeing to Air India for a four-year delay in the delivery of Boeing 787 Dreamliner planes, official sources said on Tuesday.

According to sources, the GoM will look at the terms of compensation and the amount to be paid by Boeing, as per an agreement with Air India that was approved by the airline's Board on May 28.

The national carrier had placed orders to buy 27 B-787s in 2005 and, as per the original schedule, the US aircraft manufacturer had to commence delivery of these aircraft from September 2008. Delivery was delayed due to various factors, including labour trouble in Boeing.

Three of these planes are ready and parked in the manufacturer's plants in the US.

Air India is expected to take delivery of the aircraft only after the Cabinet Committee on Economic Affairs (CCEA) approves the agreement with Boeing. Civil Aviation Minister Ajit Singh had recently said the issue of compensation is likely to go before the CCEA shortly.

It is likely that the GoM would take a view on the matter before the CCEA takes it up for approval, the sources said. A Cabinet note on the issue was moved by the Civil Aviation Ministry several weeks ago.

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