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Boeing Denies Reports It Will Pay Air India $500 Million

Tickers in this article: BA

CHICAGO (TheStreet) -- Boeing (BA) is denying reports it has agreed to pay Air India $500 million in compensation for 787 delivery delays.

"I can tell you that we're not writing anybody a check for $500 million," said Jim Albaugh, CEO of Boeing Commercial Airplanes, speaking at the JPMorgan(JPM) transportation conference on Wednesday.

Boeing is "not writing anybody a check for $500 million," executive Jim Albaugh says.

Asked about the reports, Albaugh noted that "the first time I read about it was six months ago -- it was $1 billion," and says "I think if we settled for $500 million somebody would have told me."

According to Bloomberg, a senior official in India's Civil Aviation Ministry told reporters at the Hyderabad Air Show that Boeing had agreed to pay $500 million in compensation. He said the carrier may get even more because it previously asked for $840 million.

Cash-strapped Air India is scheduled to get its first 787 in May. It would be the third customer to take delivery after Japanese carriers ANA and Japan Airlines. The first 787 flight in the U.S. will be JAL's service between Tokyo and Boston, which will begin in late April.

-- Written by Ted Reed in Charlotte, N.C.

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