Air India to cut Dreamliner order by half

NEW DELHI: The Air India board has recommended that the ailing state-run carrier purchase only 12 Boeing 787 Dreamliner planes compared with the original order of 27 aircraft placed in 2005, said a senior civil aviation ministry official familiar with the matter.

The board has proposed to the aviation ministry that the planes must be bought in phases over three years, said the official who didn't want to be named. The first plane is due for delivery in December.

A group of ministers led by finance minister Pranab Mukherjee will meet on Thursday to decide on the aircraft purchase order from US aircraft maker Boeing Co. The group is also expected to decide on additional equity infusion into Air India and approve a plan to turn around the carrier.

Civil aviation minister Vayalar Ravi had told reporters in September that the airline, long reeling under losses, was incapable of buying all the 27 aircraft worth nearly 20,000 crore. The order has also come under attack from national auditor Comptroller and Auditor General for being "risky". Air India will review the 2005 order with Boeing after the meeting of ministers on Thursday, said the official, adding that quantum of subsequent deliveries of the Dreamliners will depend on the carrier's financials.