Malaysia Airlines expects to settle the issue of compensation from Airbus for late delivery of six A380 superjumbo planes by year-end, a top official said today.

"There will be compensation. We are still talking to them (Airbus). Probably before year-end we will ... settle the compensation issue with Airbus," Managing Director Idris Jala was quoted saying by state news agency Bernama .

Idris said the restructuring drive to revive the ailing national carrier after it reported a RM1.14 billion net loss for 2005 will also be completed by the end of the year.

"All of them will be settled before year-end, a lot of things are going on, but we are making a lot of progress, I am happy," he said.

Airbus chief operating officer for customers, John Leahy, was reported in April as saying "absolutely, there will be some compensation" for Malaysia Airlines over the order of six A380s.

Under the agreement, Airbus was to deliver the first three planes later this year and the rest a year later, Bernama said.

Deliveries of the A380, the world's largest commercial airliner and the cornerstone in Airbus efforts to catch up with Boeing, are two years behind schedule because of production problems.

Singapore Airlines will be the first to fly the A380 commercially when it takes delivery of one of the giant planes later this year.