Air India has not received the delivery of new Boeing 787 aircrafts, due to delay in time sensitive delivery to Air India, Boeing (air craft manufacturer) has confirmed to pay the compensation for the loss faced by Air India.
Air India had ordered 27 units of Boeing 7887 Dream-liners in year 2005 which were supposed to be delivered by 2008. Boeing has delayed the aircraft delivery by three years due problems at their manufacturing department, for which Air India is demanding a penalty more than half a billion dollars claiming that the delay has cost them a probable earnings of 1.5 billion dollars. Air India is not only seeking compensation for delay but also for the potential business opportunity losses.
Currently Air India and Boeing are busy with the negotiations.