Tuesday, 22 May 2012

Question mark hangs over Air India's B 787 delivery


Management extends contingency plan till June 1
New Delhi, May 22:
A question mark hangs over when Air India will take delivery of the first of the 27 Boeing 787 Dreamliner aircraft.
Initially, the Union Civil Aviation Minister, Mr Ajit Singh, was to travel to Seattle at the end of the month to attend a function for the induction of the first B 787 into the Air India fleet. But on Tuesday, the programme was called off. While declining to give details on why the Ministerial trip was being postponed, officials said it will be wrong to say that the aircraft delivery has been delayed.
Indian officials conceded that there were some issues connected with the interiors of the first Boeing 787 aircraft that Air India was to receive that promoted cancellation of the Ministerial visit. But they added that there was still a chance that the aircraft will be delivered as planned. Officials did not specify the date on which the aircraft will be delivered to AI.

In-flight entertainment

Sources indicated that there were some issues with the in-flight entertainment systems and the cabin interiors, which needed to be sorted out before Air India accepts delivery of the aircraft. Officials claimed that the new aircraft is air worthy and has all the certification to fly.
Industry analysts point out that another reason the aircraft is not being delivered as earlier planned is because the issue of compensation to be paid to Air India is yet to be decided. The aircraft was initially supposed to be delivered in 2008. Officials confirmed that some legal issues were holding back deciding on the compensation amount.
Any delay in taking delivery of the aircraft could also cost the airline. Globally, the final sale price of an aircraft is decided on the first of every month, after taking into account escalation. Therefore, Boeing will be well within its rights to seek a higher price for the aircraft if delivery is pushed to June instead of the end of this month, sources indicated.

Strike by pilots

The new aircraft has been caught in the eye of a storm with sections of pilots going on an agitation, against the management decision to allow pilots from erstwhile Indian to get trained to fly the B 787.
The 19-day-long ongoing pilot agitation has seen Air India curtail its long-haul international operations. The agitation is leading to a daily revenue loss of between Rs 12-15 crore for the airline.
Meanwhile, to combat the pilot agitation, the airline has extended the contingency plan for operating international flights till June 1. The earlier plan was in place till May 25.
“Till June 1 the airline will only accept booking on international flights that are scheduled under the contingency plan,” an official added.
http://www.thehindubusinessline.com/industry-and-economy/article3446486.ece

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