Oman Air in talks for Boeing 787 delay compensation

Oman Air is in talks for compensation after the delivery of its Boeing 787 Dreamliner aircraft was delayed, the carrier’s CEO Peter Hill said.

Oman Air signed an agreement to lease six of the aircraft from Kuwait’s Alafco in 2007, with delivery expected in 2012, 2014 and 2015. However, after a series of delays in the Dreamliner’s production, the first delivery is now expected in the second half of 2014.

 “Of course, there has been talk of compensation for the delay, so Oman Air will benefit from that,” said Hill, who will retire as the airline’s CEO next month.

“In a way, this has worked to our favour, as taking on another fleet of additional wide-body aircraft within a relatively short time span is a huge challenge, which we might want to defer for a while. We will have to see how they get implemented in the future… [but] will be watching its forthcoming entry into service with launch customers.”

Boeing has postponed 787 deliveries seven times, resulting in a three-year delay, after grappling with new materials, engine supply disruptions and other problems.

More than 830 of the jets are on order to 55 airlines, including Gulf carriers Qatar Airways, Gulf Air and Etihad Airways and Amman-based Royal Jordanian.

Royal Jordanian CEO Hussein Dabbas said in May the airline had suffered “huge” losses as a result of delays to the fuel-efficient 787, at a time of $100 oil.

Akbar Al Baker, CEO of Qatar Airways which has 30 787s on order and an option for 30 more, said in December he would consider cancelling the order if there were further delays in the plane’s delivery.

The CEO of the Chicago-based planemaker told Arabian Business in June there was “no question” it had disappointed its customers, and said compensation talks were ongoing.

Boeing in May forecast a $4 trillion market for new aircraft over the next two decades, and named the fast-growing Middle East airlines as a major driver for growth.

The region will account for 2,520 – or 7.5 percent – of the aircraft orders expected to 2030, Boeing said, with a combined value of $450bn.