Air India to Boeing: "So, About That $5 Billion for Those 787's . . . "
It's no secret that these aren't the most wonderful times for Boeing. From getting its ass handed to it by Airbus to the battle it faces with the federal government over opening a plant in union-allergic South Carolina to the revelation that it's shortchanging the country on its tax bill, the airplane maker could probably stand for some positive news.
That state-owned Air India--Boeing's second-in-line customer for a shipment of its dreadfully delayed 787 Dreamliners--is too broke to pay for the 27 planes Boeing promised would be ready three years ago probably doesn't qualify.
News that the cash-strapped airline might back out of the deal, valued at an estimated $5 billion, was confirmed by the appearance of Vayalar Ravi, India's Civil Aviation Minister, on Indian TV station NDTV over the weekend.
"Does Air India really have the money to pay for the aircraft?" asked an NDTV correspondent of Ravi.
"I don't have the money to pay," Ravi responded. "There's 27 787's to be delivered. They've been delayed for three years. So the government has not confirmed now, it is difficult for the government to pay the money. I can't [go] to the finance minister all the time for the money. And it is difficult."
We contacted Boeing to find out whether the deal with Air India is dead. The company declined to say.
"We don't comment on any kind of negotiations with our customers," Boeing spokesman Doug Alder said.
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