MUMBAI, Aug. 12 (AFP) – Flagship carrier Air India said it wants compensation from Boeing Co. for delays in the delivery of Dreamliner planes, with media reports saying the airline is demanding $1 billion.

Boeing officials were unavailable for comment, but country head at Boeing Dinesh Keskar said earlier in the month that state-run Air India was eligible for compensation for delays in receiving the next-generation plane.

An Air India spokesman said the amount of compensation sought was still being finalized, but media reports placed it at $1 billion.

The delays in delivery of the Dreamliner come as the loss-making carrier faces fierce competition from local privately-owned rivals, such as Kingfisher and Jet.

Deliveries of 27 Dreamliner 787 aircraft, a model that promises greater fuel efficiency thanks to its lightweight material, have been pending since 2008.

The first plane was to be delivered in September 2008. By March 2011, Boeing was scheduled to have delivered 18 of the aircraft.

But in January, Boeing said it could supply the first Dreamliner aircraft to Air India by the second quarter of 2011, and that more planes would be delivered later.

The Hindustan Times reported that Boeing was offering $145.8 million in compensation.

Air India has been struggling to cut losses as it battles competition from low-cost airlines and rising fuel costs.