Air India to cut Dreamliner order

27 Oct 2011

Air India is reportedly cutting its order of Boeing’s 787 Dreamliners by more than half.

In 2005, Air India made an agreement to purchase 27 Dreamliners for approximately US$4.1 billion. On October 26, the carrier’s board reduced this number to 12 aircrafts. Air India could not be reached for comment.

The move by Air India follows China Eastern’s termination of an order for 24 Dreamliners on October 17 (See story here). Currently, the Indian national carrier is in talks with banks to restructure US$4 billion of working capital debt.

Meanwhile, in spite of facing two order terminations in October alone, Boeing released a statement reporting positive third-quarter results for 2011. “Strong operational performance drove double-digit margins in both of our major businesses and produced an outstanding quarter," said Boeing chairman, president and chief executive officer, Jim McNerney.

Boeing’s 787 Dreamliner made its inaugural commercial flight on All Nippon Airways (ANA) from Tokyo to Hong Kong on October 26. To view Business Traveller Asia-Pacific editor Reggie Ho’s report on the flight, click here

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Tiffany Sandrasageran

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