Airbus COO Fabrice Bregier, speaking on French radio last week, said that the delays Airbus experienced on the A380 program and Boeing now is experiencing with the 787 actually bode well for the manufacturers because the problems demonstrate to upstart aircraft makers in Russia, China and elsewhere that entry into the large aircraft market is nearly impossible. The delays ensure "that 10 years from now, Boeing and Airbus. . .will still be the two major global players in the industry.

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.