Air India shelled out an “avoidable” penalty of Rs 43.85 crore to Boeing for non-adherence with the contractually stipulated timelines under the agreement for an aircraft component service programme, according to CAG.
The penalty amount was paid in August last year for the July 2016 to December 2019 period. The Comptroller and Auditor General (CAG) has mentioned about the penalty in a report tabled in Parliament on Tuesday wherein it said that “avoidable payment of penalty due to delay in return of removed components” was made by Air India.
In December 2015, the airline had entered into an agreement with Boeing for Rotable Exchange Programme related to servicing of 787 aircraft component and the pact came into effect from July 2016.
