THE nation's peak aviation safety agency is under fire after revelations that the engine of the aircraft involved in Monday's skydiving accident, which killed five people, had a history of "abnormal" failures.]

Airline insurance providers could start to leave the market in search of more profitable sectors in 2006, pushing up premiums for airlines in the process.

Airbus and Boeing finished the year strong as several airlines announced aircraft orders or confirmations during the final week of 2005 and the first few days of the new year.

Continental Airlines said Dec. 28 it will withdraw 69 of 274 Embraer RJs from its capacity purchase agreement with ExpressJet Airlines because the latter's rates "are above the current market."ExpressJet may continue to sublease any of the 69 aircraft at higher rates but cannot operate them into any of CO's hubs. The ERJ-135s and dash 145s operate in the Continental Express network. ExpressJet at one time was a wholly owned subsidiary of CO but now is publicly traded.

While some analysts are forecasting a spike in airfares out of Washington Dulles as a result of the shutdown of Independence Air tomorrow, others believe the departure of the carrier formerly known as Atlantic Coast Airlines will cause barely a ripple."There is no vacuum created by the elimination of this airline," analyst Mike Boyd told ATWOnline. "This was clearly excess capacity in terms of need." Boyd said FLYi routes with fares as low as $29 to destinations like Portland, Me., or Charleston, W.Va., will not be missed; "You won't have another carrier rushing in to fill that Charleston route."

Australia's top-secret air marshals are under a cloud after Virgin Blue cast doubt on the need for the expensive anti-terrorist program.