Great expectations

New Delhi, June 20: The government is likely to approve next week a compensation package from US aircraft manufacturer Boeing for an over three-year delay in the delivery of planes. Air India hopes to induct the first Boeing 787 by the end of this month.

Civil aviation minister Ajit Singh today said a panel of ministers was likely to discuss and approve the compensation that Boeing would pay to Air India.

“We are hopeful that the cabinet committee on economic affairs (CCEA) will take up the compensation issue at its meeting next week,” Singh said.

Air India had ordered 27 Dreamliners as part of a $15-billion deal for 111 aircraft with Boeing and its European rival Airbus.

Boeing’s Dreamliner project has been delayed by several years because of technical glitches, and its clients have demanded compensation.

Singh also said he would talk to Prime Minister Manmohan Singh and finance minister Pranab Mukherjee soon to cut taxes on jet fuel, the biggest expense for local carriers and a key reason for their losses.

The Air India board had sent a proposal to the government on the compensation package after talking to Boeing. “The cabinet committee on economic affairs (CCEA) is looking into the matter,” Singh said. A meeting of the CCEA is likely to be held next week.

The minister said while the first three Dreamliners were expected to be delivered in the next four months, five-six more would be delivered by the end of the year.

Last month, Singh had made it clear that the aircraft could be delivered only after the compensation package was finalised.

Most likely, the compensation would be in the form of adjusting the price with the delivery of each aircraft.