The government Wednesday said that national carrier Air India is entitled to receive compensation worth $145 million for delay in delivery of aircraft ordered by the airline.
"As per the purchase agreement, Air India is entitled to receive compensation amount totalling to $145 million towards liquidated damages," Civil Aviation Minister Vayalar Ravi informed the Lok Sabha.
Ravi added: "Boeing has submitted a proposal for settlement of B-787 delay compensation."
According to Ravi, the various internal issues faced by American aircraft manufacturer Boeing had led to the delay in deliveries of Boeing 737-800 and Boeing 777s by one to four months.
"As regards the B-787, the delay has been on account of structural deficiencies in the hull of the aircraft that required modification," Ravi said.