By Sumeet Chatterjee
BANGALORE (Reuters) - U.S. aircraft maker BOEING (BA.NY)Co
"We clearly want to extend our footprint in India," Dinesh Keskar, president of Boeing India, told reporters at the launch of Boeing's research and technology center in the southern city of Bangalore.
The outstanding orders were part of the $25 billion aircraft delivery contracts Boeing had signed with Indian airlines in the past three years, he said.
"We have steady stream for deliveries coming to India," said Keskar, also noting Boeing would pay compensation to national carrier Air India
He declined to quantify the amount of compensation.
Last year, Boeing had projected India would need 1,001 aircraft worth more than $105 billion over the next 20 years and Keskar said the forecast was still valid despite an economic downturn that has impacted the global aviation industry.
Boeing has not seen any cancellation of its order for civilian aircraft from Indian airlines, though Jet Airways deferred the order of two aircraft last year that was expected to be delivered later this year, he said.
"India is fortunate because the slowdown in India is less severe than any parts of the world," said Keskar, who was appointed as head of India operations this month. "Fortunately, we are doing very well in India compared to our competition."
Boeing, which also competes for defense projects in Asia's third-largest economy, and European rival Airbus
Both Airbus and Boeing have seen the size of their backlogs, swollen by record orders before the economic downturn, fall so far this year as neither manages to sell faster than airlines cancel, data showed earlier this month.
The U.S. aircraft manufacturer is looking to bid for defense projects worth up to $31 billion over the next 10 years in India, as strategic ties between the two countries deepen.
DREAMLINER COMPENSATION
Keskar also said Boeing will pay compensation to Air India and Jet Airways for the delay in delivery of 787 Dreamliner.
"We are really sorry that because of our actions Air India is suffering, other airlines in the world are suffering. We feel for them and we will do what's right for us and them both.
Air India has placed orders for 27 787s, and the carrier will get its first such plane in the second quarter of 2010, Keskar said. Jet Airways has placed orders for 10.
"These are our big customers," Keskar said. "We are going to work together to come to an amicable solution and we will."
Rival Airbus was forced to pay hundreds of millions of dollars in compensation after its A380 superjumbo fell two years behind schedule. Now Boeing may face similar claims, analysts said.
More than 50 airlines are waiting for 892 Boeing 787s, worth a combined $145 billion at list prices.
Earlier this month Boeing said it was working toward the first delivery of the delayed 787 in the first quarter of 2010.
It was on track to make its first test flight of the aircraft in the second quarter of 2009.
(Editing by Ranjit Gangadharan and Andrew Macdonald)