Its generally because the AI sometime can't classify contacts on MAD, only mark that there is something there.
If the AI can classify the contact, then it will engage it... perhaps I can give the AI aircraft a VERY short range visual sensor capable of seeing at depth so when they repeatedly overfly the same MAD contact they can get a good ID (since in real life, the aircraft TACCO would have tactical information that would tell him what the contact is, usually).
Once the torpedoes are done, and the TIW messages have been added to the missile transients, I'm going to tackle the aircraft and helicopters for LuftWolf vs. Air Units Round 3.
Cheers,
David