Air India wants compensation for Dreamliner delay

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State-run Air India wants compensation from Boeing for a delay in the delivery of its 787 Dreamliner because the postponement hurts its growth plans, the Indian firm's Chairman said on Friday.

The Dreamliner, the fastest-selling plane in history, suffered its second setback when Boeing said on Wednesday it was pushing the programme a further three months, putting the aircraft about nine months behind schedule.

"We are in talks for compensation and Boeing is willing to give us the compensation," V Thulasidas, Chairman and Managing Director of National Aviation Co, that runs Air India, said.

The company was scheduled to receive the first of the 27 Dreamliners on order in the second half of 2008, which has been pushed to February 2009, a spokesman said, adding that Air India was waiting for a revised delivery schedule.

Australia's Qantas Airways on Thursday said it would demand compensation from Boeing, while two US airlines have expressed disappointment over potentially costly delays.

Japan's All Nippon Airways, which is set to receive the first 787, said it would not seek compensation.

"We have to look for alternatives now," Thulasidas said, adding that the initial delay of six months had also affected the airline, which is ramping up to take on greater competition.

"Further delays have now created difficulties."

A spokeswoman for private carrier Jet Airways Ltd, which has ordered 10 Dreamliners, said they were not likely to be affected by the delays.

"Our deliveries only start in mid-2011, so we don't believe we will be affected," she said.

FUND RAISING

National Aviation Co, which was formed through the merger of domestic state-run carrier Indian Airlines with Air India, has 112 aircraft which fly under the Air India brand, and has 111 Boeing and Airbus planes on order.

Air India, which plans to divest up to 15 percent of its equity in an initial public offer, has been asked by the federal government to prepare details for the share sale, Thulasidas said, but did not disclose the value and timing of the offer.