Air India may cancel orders for six planes

Air India may cancel orders for six planes

New Delhi: India’s flagship carrier Air India, struggling with massive losses, is in talks to cancel orders for six Boeing 777 planes, an airline spokesman said on Friday.

“Air India is in dialogue with Boeing for cancellation of six B-777 aircraft view of the current global aviation scenario," he said.

State-run Air India in 2006 signed a formal agreement to buy 68 Boeing aircraft in a deal that was estimated to be worth around $8 billion (Rs38,560 crore now). The carrier said it would buy 23 Boeing 777s, 27 787-8 Dreamliners and 18 next-generation 737-800s.

The list price for a single aircraft varies between $165 million and $200 million, but Air India was believed to have negotiated a lower price because of its large order.

The airline faces financial turmoil after posting an estimated $1 billion loss for the fiscal year ended 31 March and is hoping for a big government rescue package.

“Considering that Air India has a long-standing relationship with Boeing, we are confident the dialogue will be able to move forward to face the current crisis afflicting the global aviation industry," said the Air India spokesman.

A spokesman for Boeing declined comment.