India's national carrier is set to resume flights of the Dreamliner aircraft next week, an airline source said Wednesday, after the regulator gave the green light following safety modifications. Air India owns six Boeing 787 Dreamliners, which Indian regulators had grounded from January 17 in line with the US Federal Aviation Administration (FAA) advisory to cease flying the aircraft.

NEW DELHI (Reuters) - Boeing Co has agreed to compensate state-run Air India Ltd for the grounding of 787 Dreamliner passenger jets, the Indian aviation minister said on Friday, adding the details have yet to be finalized. The carrier expects to restart Dreamliner operations for domestic flights by mid-May, Ajit Singh said.

Japanese aviation authorities said Friday they would allow airlines to resume flights of the Boeing 787 Dreamliner, following US approval. "As the FAA (Federal Aviation Administration) is to approve the resumption as of Friday morning US time, we will take the same step," an official at the transport ministry said. The US authority said Thursday it would formally approve Boeing's 787 battery fix that will clear the way for the troubled aircraft to fly again.

NEW YORK (Reuters) - Boeing Co <BA.N> said on Wednesday that most of the costs associated with fixing the 787 Dreamliner battery system were reflected in first-quarter results released earlier in the day. "We managed to absorb this," Chief Financial Officer Greg Smith said in a conference call. The costs were included partly in research and development costs for the quarter, which fell compared with a year earlier. The cost will be spread over a about 1,100 planes, and that number will increase slightly, Smith said, without providing a figure.