Air India Chairman and MD Vasudevan Thulasidas said Friday that "Boeing is willing to give us the compensation" it is seeking for delayed 787 deliveries, the first concrete indication that the manufacturer will have to make penalty payments.

Hawaiian Airlines' fleet overhaul is in jeopardy because of strained relations with its pilots, the carrier said Friday in a filing with the US Securities and Exchange Commission.

Northwest Airlines pilots represented by the Air Line Pilots Assn. resolved last week to form a merger committee and said they are "prepared to protect Northwest pilots' careers and seniority while also taking advantage of any positive operational synergies to extract contract enhancements and long-term pilot job security." Separately, the MEC said in a notice to pilots that NWA will reduce its fleet by 27 aircraft in 2008, comprising 24 DC9s and three 747-200s.

In the aftermath of this week's announcement of an additional three-month delay to the 787 program, Boeing is facing a growing credibility problem while the likelihood rises that it will be forced to make penalty payments to airlines for late deliveries.

LOT Polish Airlines signed a contract for 12 E-175s plus two options and 10 purchase rights, the Brazilian manufacturer announced yesterday, adding that the aircraft were listed on its fourth-quarter backlog as unidentified. Firm aircraft are worth $372 million and the order could rise to $744 million if all options and purchase rights are exercised. Aircraft will seat 82 passengers. LOT will become the largest E-Jet operator in Europe once the jets are delivered, Embraer said. It was an E-Jet launch customer with the E-170 in 2004 and currently operates 10 170s and six 175s.