India’s financially-ailing flag carrier, Air India, is asking Boeing for up to $1 billion to compensate it for delays in delivering 787 Dreamliners to the airline, sources in India said today.
Reuters India reported the airline is in negotiations with Boeing over the compensation issue.
Air India is already some $4 billion in debt and has asked the Indian government for help to remain afloat. The airline isn’t the only Indian carrier suffering in the current economy. The company’s three other major airlines, Kingfisher, SpiceJet and Jet Airways, saw their stock decline steeply last year as they battled for market share in a price war and tried to cope with rising fuel prices.
The Indian government this week agreed to allow the airlines to directly import fuel, bypassing a high sales tax on fuel in India and cutting their fueling costs by an estimated 24 percent.
A panel of government ministers has also recommended a $1.5 billion state financial aid program for the airlines, news sources in India reported.