The Cabinet Committee on Economic Affairs today approved the proposal of the Civil Aviation Ministry to allow Air India to take the delivery of 27 numbers of B-787 aircraft after signing the Delay Compensation Settlement Agreement. It also approved that the issue relating to compensation for failure to meet performance guarantees has been delinked from the Delay Compensation Settlement Agreement, which shall be negotiated separately by an Empowered Group of Officers after actual evaluation of the performance of the delivered and inducted B-787 aircraft. The Ministry of Law and Justice would examine and endorse the enabling legal provisions and aspects of the negotiations.

Air India will derive the benefits on account of the induction of latest state-of-art technology Boeing aircraft which are more fuel efficient than its competitors.