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Air India Won't Take Dreamliner Delivery Before Delay Compensation Agreed - Minister

NEW DELHI -(Dow Jones)- Air India Ltd. won't take the delivery of Boeing Co.'s (BA) 787 Dreamliner planes until both parties agree on a compensation figure for a delay in delivering the planes by the U.S. manufacturer, India's civil aviation minister said Tuesday. "We have to decide on a compensation mechanism before taking delivery of the Dreamliner," Ajit Singh told reporters. Singh said Air India "has worked out a compensation package and is seeking a legal opinion on several steps on how to take it forward." He declined to disclose the compensation that Air India plans to seek from Boeing, but said a panel of ministers will consider the compensation that Boeing will need to pay to Air India. "We have to discuss options like arbitration and where to take this arbitration in case Boeing refuses to pay this compensation," Singh said. Air India, which ordered 27 Dreamliner jets, is expected to get the first aircraft toward the end of this month, about three years behind the original schedule. -By Nikhil Gulati, Dow Jones Newswires; +91-11-4356-3305; santanu.choudhury@dowjones.com

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