Boeing denies Air India’s $500m compensation claims

Boeing has denied claims by the Indian government that it had agreed to pay compensation to Air India for delays to aircraft deliveries.

 

Prashant Sukul of the Ministry of Civil Aviation had claimed that “two weeks back they agreed to pay” $500m (£319m).

The carrier has been seeking compensation for delays in the delivery of planes it ordered in 2005, including 27 Boeing 787s.

Deliveries of the 787 Dreamliner have been delayed for three years.

However, Boeing said it had not agreed any such deal.

“We don’t comment on deals that we’ve done. But I can tell you we’re not writing anybody a cheque for $500m,” said Jim Albaugh, chief executive of Boeing.

Boeing has said that it plans to accelerate production of the 787 to 10 per month from next year to clear the backlog of orders and ensure future delivery schedules are met.

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