Page 27 - AAA MAY - JUNE 2013 Online Magazine

INDIA SECTION

Air India to get Boeing Compensation?

Air India is likely to get compensation from Boeing for the disruptions caused by the
grounding of its fleet of 787s. All six of Air India’s 787 aircraft were grounded following
incidents of fire and smoke in lithium-ion batteries. The airline has already had initial
talks on the issue with Boeing, says Alit Singh, Indian Civil Aviation Minister.
The original deal included a warranty clause which specified that Boeing will not
Russia, India Design RTA be liable for any damages due to loss of use, revenue or profit due to any fault in the
aircraft. However, when the agreement was signed, “the situation of grounding the
Russia’s United Aircraft Corporation is entire fleet […] for a prolonged period was not foreseen or taken into account,” says
likely to assist India in designing and one official. All six 787s have been grounded since January on a directive from the US
developing a regional transport aircraft FAA following two separate battery failures in 787s operated by Japan Airlines and
(RTA). The manufacturer – which All Nippon Airways. Air India also expects to receive a compensation package worth
makes a range of commercial aircraft as much as US$1 billion from Boeing for delayed delivery of 787 aircraft on order that
from the Sukhoi SuperJet to the IL-96- could be in the form of a deduction from the total cost of the 27 787s ordered by the
400M – has offered to establish a joint national carrier and in discounts on future orders.
development and manufacturing facility
in India. The move would see Moscow
also benefit from improved commercial
prospects in a market dominated by US
and European aircraft makers, a senior
government official in New Delhi says.
India has established a National
Civilian Aircraft Design Bureau, which
is working on the preliminary project
design. The National Aerospace
Laboratory, a constituent of the Council
of Scientific and Industrial Research
(CSIR), is spearheading the National India To Develop Airports “The Indian airport system is poised
Civil Aircraft Development project along to handle 336 million domestic and 85
with Hindustan Aeronautics Limited. “The Indian government [sees] investment million international passengers by 2020,
The estimated cost of the RTA project of US$12.1 billion in the airports sector making India the third-largest aviation
is 75.55 billion rupees (US$1.3 billion) during the 12 Plan period (2012–2017), market,” says Singh. Indian airlines are
th
of which 43.55 billion rupees would be of which US$9.3 billion is expected to expected to add around 370 aircraft, worth
for the design and development and come from the private sector,” says Ajit US$27.5 billion, to their fleets by 2017.
the remaining 32 billion rupees for the Singh, Indian Civil Aviation Minister. The plan will also encourage domestic
development phase. The first flight of The investment is expected to be in airlines to fly to remote routes with
the 90-seat RTA is expected to take place new airports, modernisation of existing tourism potential, and introduce union
in 2017. As yet, India is the only BRICS airports and development of low-cost budget, utilisation timing and custom
nation without indigenous passenger airports, connecting infrastructure, and duty incentives to promote the growth of
aircraft manufacturing capability. air navigation services infrastructure. MRO competitive business.

WWW.ASIANAIRLINES-AIRPORTS.COM MAY / JUNE 2013 ASIAN AIRLINES & AIRPORTS 27