Boeing commercial chief refutes Air India settlement reports

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Boeing Commercial Airplanes chief executive Jim Albaugh refuted a report of a lump sum $500 million settlement with Air India on its order for 27 significantly-delayed 787 aircraft.

"I think if we settled for $500 million someone would have told me. We don't comment on deals that we've done, but I can tell you we're not writing anybody a check for $500 million," says Albaugh at the JP Morgan Aviation, Transportation and Defense conference in New York.

Albaugh did not elaborate on the form that compensation to the ailing Indian flag carrier might take.

According to reports from the Hyderabad air show, Prashant Sukul, an Indian joint secretary at the Civil Aviation Ministry, says Boeing agreed to the half-billion dollar sum two weeks ago.

Air India now expects to take delivery of seven 787s by March 2013, the first now expected in May. This adds five to nine months to its last schedule, which had its first seven to be handed over to the carrier by June 2012 with its first expected in January.

Air India initially expected its first delivery in September 2008.