Lok Sabha Question No. 156 (STARRED), answered on 2019-11-28
Subject: Delivery of Aircraft
Ministry: CIVIL AVIATION
Asked by: K. Shanmuga Sundaram

## GOVERNMENT OF INDIA MINISTRY OF CIVIL AVIATION LOK SABHA (To be answered on the 28th November 2019)

## DELIVERY OF AIRCRAFT

## *156. SHRI SHANMUGA SUNDARAM K

## Will the Minister of CIVIL AVIATION

be pleased to state: -

- (a) the total number of aircraft ordered from Boeing and the scheduled date of delivery by the foreign aircraft manufacturer;
- (c) whether Air India is having any specific  clause for claiming damages/penalty for late delivery and the details thereof;
- (b) whether there is any delay in delivery of the aircraft and if the details thereof; SO,
- (d) whether the compensation has been calculated based on the revenue foregone by Air India; and
- (e) if so, the details thereof and if not; the reasons therefor?

## ANSWER

Minister of State (IC) in the Ministry of CIVIL AVIATION

(Shri Hardeep Singh Puri)

- (a) to (e): A statement is laid on the Table of the House:

*****

Statement in reply to part (a) to (e) of Lok Sabha Starred Question No.156 for 28.11.2019 regarding DELIVERY OF AIRCRAFT tabled SHRI SHANMUGA SUNDARAM MP by K.,

- (a): Total number of Aircraft ordered by Indian Scheduled Carriers from Boeing is at Annexure-I:
- (b) : The delivery %f 27 B787-8 aircraft to Air India was delayed by Boeing due to production design problems The delay in the actual delivery vis-a-vis scheduled delivery of these 27 aircraft is attached as Annexure-II
- (c): The Purchase Agreement between Boeing and Air India relating to B787 aircraft provided for certain contractual remedies and compensation to Air India in case of delayed deliveries by Boeing; Since there was a considerable delay in B787 aircraft deliveries, a Board Overseeing Committee was constituted by Air India Board to initiate discussion with to arrive at an enhanced settlement package prior to taking delivery 0f the first aircraft. The Board Sub-Committee had series of meetings with Boeing and had forwarded the final compensation offered by Boeing to Government for approval On receiving approval, Boeing and Air India Signed a supplemental delay agreement on Sth September 2012 with Boeing for enhanced compensation for these delays. Boeing
- (d) and (e): In accordance with the clause for delayed delivery in purchase agreement entered with Boeing, the compensation was based on a daily lease rentals capped to maximum 0f 180 delay days: Air India further extensively negotiated with Boeing and was able to raise the compensation level and also secure concession that the escalation clauses in the agreement will not be applicable for the delayed deliveries and B787 aircraft would be delivered as per the of original delivery schedule. price

*****

## ANNEXURE-Lto\_the\_statement of LSQ 156

| Carrrier                    | Aircraft Type   |   No: of Aircraft | Delivery Schedule                                                                          |
|-----------------------------|-----------------|-------------------|--------------------------------------------------------------------------------------------|
| Air India                   |                 |                 8 | 2007 2009                                                                                  |
| Air India                   | B777-300E R     |                15 | 2007                                                                                       |
| Air India                   | B787 -8         |                27 | 2018 2008                                                                                  |
| Air India Express           | B737-800        |                18 | 2011 2006-2009                                                                             |
| Tata SIA Airlines (VISTARA) | B787-900        |                10 | 2020-2022                                                                                  |
| Spice Jet Ltd               | B737-8 (Max)    |               155 | To be delivered by 2024 (Delivery of aircraft is on hold due to grounding of Max aircraft) |

DELAY IN THE ACTUAL Annexure-ILto\_LSQ156 DELIVERY VIS-A-VIS SCHEDULED DELIVERY OFTHE \_ AIRCRAFT

| Sr No:   | Aircraft   | MSN   | Reg Mark      | Delivery Date   | Delivery Date   |
|----------|------------|-------|---------------|-----------------|-----------------|
| Sr No:   | Aircraft   | MSN   | Reg Mark      | Original        |                 |
|          | B787-8     | 36276 | VT-ANH        |                 | Actual          |
| 2        | B787-8     | 36278 | VT-AND        | Sept 2008       | 7-Sep-12        |
| 3        | B787-8     | 36277 | VT-ANI        |                 | 21-Sep-12       |
| 4        | B787-8     |       | VT-ANK        | Nov2008         | 11-Oct-12       |
| 5        | B787-8     | 36283 | VT-ANL        | Dec2008         | 20-Dec-12       |
| 6        | B787-8     | 36281 |               | Jan 2009        | 28-Dec-12       |
| 7        | B787-8     | 36284 | VT-ANJ VT-ANM | Mar.2009        |                 |
| 8        | B787-8     | 36285 | VT-ANN        | Mar_2009        | 18-Jun-13       |
| 9        | B787-8     | 36286 |               | 2009            | 13              |
| 10       | B787-8     | 36275 | VT-ANO        | 2009 Aug:       |                 |
| 11       | B787-8     | 36280 | VT-ANG        | Oct_2009        | 1-Nov-13        |
| 12       | B787-8     | 36279 | VT-ANE        | Oct_2009        | 3-Dec-13        |
| 13       | B787-8     | 36273 | VT-ANB VT-ANA | Dec 2009        | 28-Jan-14       |
| 14       | B787-8     | 36287 |               | Dec 2009        |                 |
| 15       | B787-8     | 36274 | VT-ANP        | Dec 2009        | 2-Jun-14        |
| 16       | B787-8     | 36288 | VT-ANC        | Jan. 2010       | 20-Jun-14       |
| 17       | B787-8     | 36289 | VT-ANQ        | Feb: 2010       | 17-Jul-14       |
| 18       | B787-8     | 36290 | VT-ANR        | Mar.2010        | 29-Sep-14       |
| 19       | B787-8     | 36291 | VI-ANS        |                 | 11-Dec-14       |
| 20       | B787-8     | 36292 | VT-ANT        | Nov2010         | 17-Feb-2015     |
| 21       | B787-8     | 36293 | VT-ANU        | Dec 2010        | 31-Mar-2015     |
| 22       | B787-8     | 36294 | VT-ANV VT-ANW | Jul. 2011       | 25-Jun-2015     |
| 23       | B787-8     | 36295 | VT-ANX        | 2011 Aug:       | 7-Nov-2016      |
| 24       | B787-8     | 36296 | VT-ANY        | 2011 Aug:       | 9-Jan-2017      |
| 25       | B787-8     | 36297 | VT-ANZ        | Sept 2011       | 11-Jul-2017     |
| 26       | B787-8     | 36298 | VT-NAA        | Sept 2011       | 23-Aug-2017     |
| 27       | B787-8     | 36299 | VT-NAC        | Sept 2011       | 30-Aug-2017     |
|          |            |       |               | Oct_2011        | 11-Oct-2017     |