Boeing to pay AI $500m for delayed deliveries

The Boeing Co. has agreed to compensate Air India (AI) $500 million for the delay in the delivery of 50 aircraft, but the state-run carrier is pushing for more, a senior official said. Air India has sought $1 billion as compensation for the three-year delay in the delivery of 50 long-range Boeing jets worth about $6 billion. Talking to reporters on the sidelines of India Aviation 2012, which began here on Wednesday, Prashant Sukul, joint secretary in the civil aviation ministry, said Boeing had agreed to pay $500 million. He, however, said the talks were still on with the aircraft maker.