Cash strapped state-owned airlines Air India has sent a notice to the aircraft manufacturer and asked it for paying a compensation of $1 billion.

The management of Air India has accused Boeing of delaying deliveries of plane that it had ordered. The 27B-787 Dreamliners are the ones that Air India had ordered for and as per the original schedule they had to be delivered in September 2008 followed by a pattern of sending one every month.

Air India had ordered for 18 of such premium aircrafts. But looking at the pace at which the things are going on in Boeing, one can expect that the first aircraft can be delivered only by April of next. A delay of around three years.

Since Air India is already facing a bleeding balance sheet, such delays are also hampering its efforts to reestablish itself in the market.

If the compensation is paid, the amount will be enough to fulfill half of the loss of Air India.

There was no response from Air India regarding this issue. The compensation has been calculated on the basis of direct cost per day to the company.