The gloomy days of the recession-hit public sector carrier, Air India, continue to haunt the company, forcing it to take hard decisions day after day. In a recent move, Indian flagship carrier Air India, grappling with serious financial crisis, has decided to cancel orders for five Boeing 777 planes that it had ordered with the aim of expanding its fleet size.

A few days back, Air India Chairman and Managing Director, Arvind Jadhav, had said: "The cancellation orders have already been issued by my engineering department."

He blamed Boeing, the world's second largest commercial aircraft maker, for failing to deliver 27 B-787 planes as per schedule, leading to huge losses for the company. Mr. Jadhav said: "We have put a claim of 710 million dollars for their failure to deliver the aircrafts to us in time."

The state owned carrier had inked a deal worth around eight billion dollars with Boeing in 2006, to buy 68 Boeing airplanes.

The carrier reported an estimated loss of one billion dollar for FY2008, and is currently eying a government bailout package to set its financial health in order.