Oman Air discussing Boeing 787 delay compensation

Gulf carrier "will benefit" from compensation, states CEO Peter Hill.
Oman Air CEO Peter Hill
Oman Air CEO Peter Hill


Oman Air is discussing compensation after its delivery of Boeing 787 Dreamliner aircraft was delayed, according to chief executive officer Peter Hill.

The carrier signed an agreement to lease six of the aircraft from ALAFCO (Aviation Lease and Finance Company) 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, Hill confirmed to Aviation Business magazine in Dubai.

“Of course, there has been talk of compensation for the delay, so Oman Air will benefit from that,” stated 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, it’s a matter for the new CEO, but we are committed and will be watching its forthcoming entry into service with launch customers."

When asked whether the compensation will be offered through ALAFCO, Hill added: "The amount and form of compensation from Boeing for the delayed delivery of the 787 is a complex matter, which will not be resolved until such time as we finally take delivery of the aircraft."

Click here for the full interview with Oman Air's Peter Hill, as published in the August 2011 issue of Aviation Business magazine.

Most Popular