Bloomberg News

Boeing Says Air India Taking 787s, Watching Engine Probe

August 03, 2012

Boeing Co. (BA:US) said it was told by Air India Ltd. that the carrier will start making plans next week to take delivery of its first 787 Dreamliners after winning government approval for the new planes today.

The state-owned airline isn’t refusing the jets after last weekend’s engine failure, Boeing India President Dinesh Keskar said in an interview. Airline executives want an update on the investigation into the incident as they prepare to receive the first three planes that are ready for them, Keskar said.

“They want to know what the issue is, just like anybody would,” Keskar said of the incident, when debris spewed from the back of an engine on July 28 on an Air India 787 that was preparing for its first flight. “We’ve worked with them for 60 years, and they know we’re not going to give them something that’s not right. But they certainly want to know what’s going on and told us to let them know by Monday if we have any insight.”

Airline executives called Keskar today to tell him about the successful Cabinet committee meeting they’d been up all night preparing for, he said. The government approved a compensation agreement for delays to the plane, paving the way for deliveries to start. Boeing has three 787s waiting for the carrier at its South Carolina plant.

Air India had asked for $840 million after Chicago-based Boeing’s struggles to adopt new materials and production techniques for the 787 set the composite-plastic plane’s entry into service back more than three years. Keskar declined to discuss the compensation.

To contact the reporter on this story: Susanna Ray in Seattle at sray7@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufner@bloomberg.net


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