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GoM approves compensation package from Boeing

      A Group of Ministers (GoM) on Wednesday finalised the enhanced compensation package from Boeing over the delay in delivery of Dreamliner aircraft for Air India . Interacting with mediapersons , Civil Aviation Minister Ajit Singh said, “Air India had negotiated a compensation package with Boeing, because these planes were supposed to be delivered beginning 2008. There is about four years delay. So GoM has considered it and we will send it to Cabinet Committee on Economic Affairs (CCA).” Reportedly, three of the 27 aircrafts to be handed over to Air India are ready, but the national carrier is yet to receive the planes due to protests over the past few months. The central government wanted to settle the compensation issue before the delivery of the planes. Singh, however, did not disclose the amount stating agreement regulations. “We have a confidentiality agreement with Boeing and that amount can not be disclosed,” he said. Deliveries of the 787 Dreamliners are caught up in a dispute between the US planemaker and India over compensation to the carrier, after production of the planes were delayed by four years. Air India ’s purchase of Dreamliners was also criticised by a central auditor last year for “imposing an undue long-term financial burden.”

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