Folks, just going back to the AI story, I think we should not be too quick to dismiss it. Yes, the runway length is an issue, but with the proper will (and interest at govt level), it is a surmountable problem.
Sydney has a crosswind runway of 8,300' and from time to time, it is necessary to use this to accommodate long haul flights; while there are undoubtedly some capacity constraints, modern jet engines are mostly used with derated power, so at full welly (to use the technical term!), they can deliver a quite stupendous amount of power; remember that the 777-300ER has the most powerful jet engines ever built. Yes, AI would prefer a longer runway, BUT if other parts of the deal are satisfactory, they may be persuaded to wait for this - for example, agreeing to use DUB, subject to a commitment to build a 1,500' (or so) extension within an 18 month period.
I do take Ireland105's point about the poor planning (to put it mildly) in the past and yes, it is not beyond the realm of possibility that things could turn out as he suggests, but on the other hand, we're dealing with new realities here; the govt will be well aware - given the precarious state of our finances - of the need to develop new markets and I would hope/expect that they are pushing hard on this, at all necessary levels - Foreign Affairs, Transport and (if necessary) prime ministerial level.
Coincidentally, here's an article in today's Flight International:
Air India expects to take first 787 next March
The airline is looking to downsize its 77W fleet and there are already a few takers; the 777 fleet is very new. The 787 fleet, deliveries of which are expected to start next March, would have no trouble operating from 10/28.
It's quite possible that the DAA is just blowing smoke and as Ireland105 suggests, they're creating a plausible illusion. However, let's give them the benefit of the doubt.
And we might still see these beauties flying into DUB ...
JetPhotos.Net Photo » VT-ALQ (CN: 36315) Air-India Boeing 777-337ER by John Fitzpatrick
In one sense, it could be a win-win, because although the loss of this would be very disappointing, the reasons for it would be well known (i.e. the shortness of the runway) and could therefore act as a spur to act on this in a serious way.