Airline Says Boeing Is Blaming The FAA This Time

With Boeing claiming to be ready to deliver the first customer 787 to All Nippon Airways (ANA) in just a few weeks, one of the training flights made by ANA pilots flew into New Delhi's Indira Gandhi International Airport in India July 13. It was the first landing by the new plane in that nation, and generated some excitement in a market where Air India has been accumulating operating losses waiting for the plane, which is more than three years late to market.

Now, a leading Indian business daily, Business Standard, is reporting Air India has been told by Boeing the delivery of its first Dreamliner has been pushed back another two months, from this October to December. This time, Boeing is said to be blaming not labor unrest or supply chain issues, but the FAA.

Business Standard says it has been told by a senior Air India official, who spoke on the condition of anonymity, "We have been informed that the first two 787s, which were to be delivered in October, will come in December because of delays in receiving clearances from the Federal Aviation Administration (FAA). The aircraft will be a great boon for us in the medium-haul routes and we will start with our service to Singapore."

Air India's turnaround depends heavily on the 787, since it currently has only 777s to serve medium-haul routes, which it says require load factors over 90 percent to turn a profit. Once AI gets all 787s it has ordered, it hopes to expand lucrative service to markets such as Malaysia, Hong Kong, Osaka, Jakarta, Dubai and Frankfurt.

As might be expected given the three-year delay on Boeing's side, the airline official added, "stiff negotiations are on."

Air India is in tough shape. Management says Air India employees have got their salaries and productivity-linked incentive for one month, but admits, "PLI for two months and salaries for one month are still due and we will pay it as and when we get the money."

FMI: www.airindia.in