Compensation claim from Boeing: AI board seeks approval from govthttps://indianexpress.com/article/news-archive/web/compensation-claim-from-boeing-ai-board-seeks-approval-from-govt/

Compensation claim from Boeing: AI board seeks approval from govt

The matter was taken up for a detailed discussion by the airline’s Board,said the sources.

The Air India Board on Monday decided to refer to the government its decision to claim $1 billion compensation from Boeing for delaying the delivery of Dreamliner aircraft by nearly four years.

The matter was taken up for a detailed discussion by the airline’s Board,said the sources. The top management discussed the extent of compensation,amount to be claimed and the procedures involved. “A decision was taken to refer the matter to the government,” Air India CMD Rohit Nandan told The Indian Express.

While refusing to specify the compensation claim put forward by the airline,Nandan said that the compensation has to be worked out soon. Another senior executive present at the meeting said that the final decision on the matter may be taken in a week’s time.

The aircraft manufacturer,Boeing,was to deliver the first of Dreamliner planes by September 2008.

Owing to industrial disputes and technical issues,the manufacturer had to suffer setbacks in its delivery schedule. Air India had placed an order of 27 Dreamliners apart from 41 Boeing 777s — three of which are yet to be inducted.

“The delivery of Dreamliners would proceed as per schedule,and in no way would be affected by the compensation claims,” said the official.

Committee set up to examine profitability of AI routes

To stem Air India’s mounting losses,Civil Aviation minister Ajit Singh has set up a committee to examine profitability of international and domestic routes.

The panel would categorise non-profitable routes into three heads — routes which do not meet fuel costs,operational cost and the total costs.

“This needs to be examined objectively keeping in view the profitability as the most important objective,” a ministry spokesperson said. The panel has been asked to submit the report within a week.

According to the terms of reference,the panel will undertake an analysis of criteria for withdrawal/inclusion of routes,economics of various routes: domestic as well as international in the last one year,identification of unprofitable routes and reasons,route-wise recommendations in terms of withdrawal or continuance of flights during current summer schedule and making them profitable.

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Chaired by joint secretary G Asok Kumar,the committee will consist of director,Syed Nasir Ali,Airports Authority of India executive director (operations) SC Sharma and Directorate General of Civil Aviation DDG Lalit Gupta.