An executive from Boeing Co has denied claims by the Indian government that the company has agreed to pay $500 million for aircraft delivery delays.

I think if we settled for $500 million, somebody would have told me, Bloomberg quoted Jim Albaugh, president of Boeing's commercial aircraft unit, saying at the JPMorgan Chase & Co. aviation, transportation and defense conference in New York.

We don't comment on deals that we've done, but I can tell you that we're not writing anybody a check for $500 million.

The compensation claims have been made by Prashant Sukul of the Ministry of Civil Aviation who said that the agreement was done two weeks back for the payment of $500 million.

Sukul further informed at the Hyderabad Air Show that there might be further compensation as it initially asked for $840 million and it has since asked for more because of further delays.

Air India has been asking compensation for delays in the delivery of planes it ordered in 2005, including 27 Boeing 787s. Reportedly, the delivery of the aircraft has been delayed for three years.

Though there have been delays in deliveries, yet the 787 line by the aircraft manufacturer is regarded as a huge success.

With claims of 20 percent fuel efficiency, as compared to similar-sized aircraft, the 787 Dreamliner has received over 800 orders. The fuel efficiency claims have accelerated the demands as oil prices have elevated due to the ongoing tensions in the Middle East.