Air India increases claims against Boeing to $1 billion

Air India increases claims against Boeing to $1 billionIndia’s state-run aviation firm, Air India is increasing the amount of claim to the level of $1 billion against US plane maker Boeing as it delayed the delivery of 787 Dreamliner planes, according to an official of the civil-aviation ministry of India.

The company companies might hold discussions before all 27 Dreamliner planes that have been ordered, are delivered to the airline. The official has asked not to be named in the repot due to the policy and the American firm did not comment on the matter.

The Indian company has said in August that it will claim $840 million from Boeing in compensation from Boeing for delays in the delivery schedule. It’s order would be valued at about $5.7 billion without the discounts.

The 787 Dreamliner began passenger service in November, which is about three and a half year’s behind its original schedule. The delays are blamed on new materials and manufacturing processes used in production.

Boeing has said that the company is still holding discussions with its clients over compensation for delays in delivery schedule. The company is aiming to build 10 Dreamliners a month by the end of 2013 as it is trying to deliver all more than 800 accumulated orders for the model.