Air India seeks $1 billion from Boeing for delay in Dreamliner delivery: report

National carrier Air India is seeking nearly $1 billion in compensation from US aircraft manufacturer Boeing Co for delayed delivery of the Dreamliner jets.

Boeing is reported to have agreed to pay $500 million to make good the delay in delivery of the aircraft, which has upset Air India's route plans and flight schedules.

Meanwhile, the first Boeing 787 Dreamliner in Air India's colors touched down at Indira Gandhi International Airport in New Delhi on Tuesday after a 14-hour non-stop flight from Seattle, in US.

The 787 will debut at India Aviation 2012 in Hyderabad. The Dreamliner that will be showcased is outfitted in Air India's livery and an inviting passenger interior featuring full business and economy-class cabins.

Made from composite materials, the Boeing 787 Dreamliner is the first airplane to provide both long distance capabilities with mid-size capacity. This capability will allow airlines like Air India to profitably operate non-stop routes to many more distant cities, providing choices preferred by the traveling public.

Boeing Commercial Airplanes chief executive Jim Albaugh, however, disputes the claim that Boeing had agreed to any payment.