The General Electric/Pratt & Whitney-led Engine Alliance received certification from the US Federal Aviation Administration yesterday (4 January) of its GP7200 engine for the Airbus A380 super large aircraft and aims to start flight tests in Toulouse in the second quarter.

Northwest Airlines plans to establish a separate unit that will fly new, regional jets to smaller cities that it currently serves as soon as 2007, according to a company newsletter.

The grounding of Independence Air, a regional airline turned low-cost carrier, is expected to provide a modest boost to its rivals, especially on the US East Coast, where its discounting has depressed fares.

Indonesia wants to inject funds into state-owned airline Garuda Indonesia and may also sell a stake, Transport Minister Hatta Radjasa said on Thursday.

Australian budget airline Virgin Blue said on Thursday November passenger traffic rose by 8.6 percent on a year ago after slowing capacity growth and introducing a frequent-flyer program.

Boeing's commercial plane orders more than tripled to a record 1,002 for 2005, the US planemaker said on Thursday, signaling that it will probably reclaim the lead from European rival Airbus for the first time since 2001.

The pilots' union at Northwest Airlines says the carrier is "risking labor peace" if it voids their collective bargaining agreement before another consensual deal is in place, according to court documents.

Two US airlines are returning 42 regional jets to Canada's export lending agency, which guaranteed the sale of the 50 seat Bombardier aircraft, an agency spokesman said on Thursday.

Australia's air safety regulator proposed four years ago that skydiving planes should warn passengers they may not be as safe as other aircraft, but it did not proceed with the idea.

Bankrupt Northwest Airlines intends to create a new regional feeder airline that will fly 70- to 100-seat jets in medium-sized markets that Northwest says are key to its growth, according to a company newsletter published on Thursday.