The Star Alliance has proposed new conditions to induct Air India into the global airline consortium that the Indian government says it cannot accept. “The alliance has recently put forward additional conditions that cannot be accepted,” Civil Aviation Minister Vayalar Ravi said. He did not elaborate on the new conditions. Air India’s entry into the global pact among 27 airlines was indefinitely put on hold Aug. 1 as its executive board was unable to decide on the induction date.

Cash-strapped Air India is entitled to $145 million as partial compensation for delays in delivery of various aircraft ordered by the national flag carrier, says the country’s civil aviation minister, Vayalar Ravi. Ravi cited internal issues at Boeing for causing delays in the delivery of 737-800s and 777s by one to four months. Air India has been losing money since 2007, when it merged with Indian Airlines. High fuel costs and a $15 billion overhang of aircraft orders with Airbus and Boeing have added to the airline’s woes.

NEW DELHI — India is likely to complete construction of its first indigenous aircraft carrier, called the Air Defense Ship, by the end of this year, says Defense Minister A.K. Antony. “Regarding the Air Defense Ship being constructed at Cochin Shipyard Limited, 75% of hull work has been completed and [it] is expected to be launched in December 2011, after which further works will be undertaken prior to commissioning,” Antony says.