The Boeing Co. has agreed to compensate Air India $500 million for the delay in the delivery of 50 aircraft, but the state-run carrier is pushing for more, a senior official said.
Air India has sought $1 billion as compensation for the three-year delay in the delivery of 50 long-range Boeing jets worth about $6 billion.
Talking to reporters on the sidelines of India Aviation 2012, which began here Wednesday, Prashant Sukul, joint secretary in the civil aviation ministry, said Boeing had agreed to pay $500 million. He, however, said the talks were still on with the aircraft maker.
The aircraft include 27 Boeing 787 Dreamliner that is being showcased at India Aviation.
Earlier, replying to a query at the news conference, Ajit Singh said the negotiations about compensation were on with the Boeing. He did not elaborate.
Dinesh A. Keskar, president, Boeing India and senior vice president, sales, Asia Pacific and India, refused to comment. "We don't discuss such issues in public," was all he said when asked about the official's comment that the company has agreed to pay compensation.