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An oil leak was the cause of an engine explosion that disabled the flight computers aboard a Qantas flight last month, but decisive action from the flight's crew averted disaster. Article discusses how training programs may be inadequately preparing pilots to cope with emergency situations in the absence of automated flight controls.

The Federal Aviation Administration proposed to fine American Airlines $24.2 million for alleged aircraft maintenance violations, but the airline claims the work was done properly and travelers were never at risk.

Beating rival Lockheed Martin Corp., Thales S.A. of France won a $2.1-billion contract to build 72 communication satellites for Iridium Communications Inc. Iridium will also award $800 million in contracts to launch the satellites.

Startup California-based Space Exploration Technologies Corp. (SpaceX) signed a deal to launch a commercial satellite for Loral Space & Communications Inc. The launch is scheduled for 2012.

Honeywell International Inc. predicts that the five-year slump in business jet demand will continue to deepen before the industry starts making a slow recovery in 2011. Business jet deliveries will fall 30% this year to 800 delivered aircraft from 1,140 last year. Through 2019, 11,000 new jets will be delivered at a market value of $200 billion.

The U.S. Federal Aviation Administration is investigating American Airlines over alleged improper repairs to at least 16 airplanes, and FAA officials suspect that at least one of those aircraft was retired to avoid further inspections. The investigation raises concerns about the airline's willingness to disclose potential safety problems.

Former pilots' allegations have prompted a U.S. Federal Aviation Administration's investigation into purported safety irregularities by Gulfstream International Airlines. Congressional investigators have also conducted an independent probe. Article discusses findings of the inquiries and proposed penalties.

Establishing a new benchmark, satellite operator Intelsat Ltd. has signed a $167-million contract to provide satellite communications services to the Australian Defence Force (ADF) for 15 years. Intelsat will reserve part of a satellite for use by the ADF. The satellite is still under construction and will be launched in 2012.

Boeing Co. is close to signing a contract to build as many as four satellites for Intelsat Ltd., in a deal valued at between $400 million and $550 million. The contract would give a boost to Boeing's ailing satellite-manufacturing business while allowing Intelsat to diversify its satellite providers and cut costs by ordering multiple satellites.

France's export credit agency, COFACE, will guarantee loans by a syndicate of major French banks to satellite-services firm Globalstar Inc. for $574 million to buy and launch new-generation satellites. The funding is intended to protect jobs in France.

Satellite-services company Inmarsat PLC reports that fourth-quarter subscriber revenue grew 20% to $160.6 million, while full-year net profit rose to $193.8 million from $124.7 million in 2007. Similarly, Eutelsat Communications S.A. reports a 7.9% increase in revenue, and a 53% increase in net profit for its fiscal first half.

Scheduled to be launched in the second half of 2010, China will build a private satellite for French operator Eutelsat Communications. The U.S. prohibits China from building satellites made with U.S.-built technology, and the restriction has prevented China from reaching any satellite deals with major European or Asian operators in the past decade. Article discusses the implications of the Eutelsat contract for the Chinese satellite-construction industry.

Capping a series of financial setbacks and manufacturing glitches, personal jet manufacturer Eclipse Aviation Corp. has filed for Chapter 11 in a U.S. bankruptcy court. Eclipse's main shareholder, ETIRC Aviation, plans to continue operations during bankruptcy proceedings and is expected to acquire Eclipse's viable assets. Court documents indicate that Eclipse has estimated liabilities of over $1 billion, assets of between $100 million and $500 million, and debt to investors and suppliers of more than $500 million.

The U.S. Federal Aviation Administration is proposing to levy fines on American Airlines in the amount of $7.1 million for allegedly violating aircraft-maintenance regulations and not following proper employee drug- and alcohol-testing procedures. American Airlines will meet with FAA officials to discuss the charges and proposed fines.

Because of reported engine malfunctions between 2002 and 2004, the U.S. Federal Aviation Administration is proposing the mandatory inspections of almost all models of Boeing jetliners. Article discusses Boeing Co.'s engine design changes, safety check recommendations to jetliner operators, and reactions to the FAA's announcement.

In the wake of Southwest Airlines Co.'s disclosed safety violations, the Federal Aviation Administration orders special maintenance checks at every U.S. airline. Article discusses safety threats discovered during routine inspections, and possible congressional hearings into airline safety.

Southwest Airlines Co. voluntarily grounds airplanes and cancels flights over possible safety inspection irregularities. Article discusses the airline's safety controls, recent safety-related government probes, and customer relations.

Airbus parent company European Aeronautic Defence and Space Company EADS N.V. and US-based Northrop Grumman Corp. have won a $40-bil contract with the United States Air Force to build 179 Airbus A330s to replace the Air Force's current fleet of Boeing Co. tanker aircraft. Boeing's loss of the contract has drawn political criticism.

Byline: ANDY PASZTOR A veteran space scientist turned entrepreneur is making a big bet that a new generation of small, low-cost satellites can revolutionize the collection of weather data that [...]

Australian military officials and the US Dept of Defense have made an agreement in which Australia will invest $800 mil for a portion of bandwidth capacity that will be provided by a military satellite communications system currently being built by US-based Boeing Co. The system is expected to provide a minimum of 10 times greater bandwidth compared to all existing systems.

The US has expressed concern over the partnership between France's satellite manufacturer Thales S.A. and China's state-controlled rocket industry, citing national security and competition issues. The US government is wary of China's acquisition of sensitive technologies via the partnership; however, Thales states it has sufficient safeguards in place to prevent this from occurring.

Byline: ANDY PASZTOR; WALL STREET JOURNAL STAFF Citing serious and persistent safety problems with hundreds of older Bombardier Inc. jets flown by regional airlines around the world, U.S. and Canadian [...]

Byline: ANDY PASZTOR Canada's EMS Technologies Inc., expanding its airborne-communications focus, has agreed to develop a new generation of mobile phones for satellite-operator Inmarsat PLC capable of switching easily between [...]

Arianespace S.A.'s ability to launch multiple satellites in tandem is likely to boost its already sizable presence in the launch services sector, with possible expansion into manned space flights. Arianespace owns over 50% of the $2.7 bil-per-year global market for scientific research and communications satellite launches.

China Aviation Industry Corp. and Canadian aircraft manufacturer Bombardier Aerospace North America signed an agreement that will enable both develop new aircraft. Bombardier will assist in the development of China's ARJ21 regional jet, while China Aviation will invest $400 mil to build production facilities for Bombardier's C Series regional jets.

Luxembourg's SES Global S.A. has signed a five-year contract with the rocket operators Russia's International Launch Services and France's Arianespace S.A. to launch 10 of its satellites. The deal, valued at $700 mil, is aimed at improving reliability by providing alternative launch sites and backup rockets for each satellite.

Canada's MacDonald Dettwiler and Associates Ltd. is placing its space and surveillance divisions up for sale for $1 bil. Four major U.S. defense firms are said to be interested: Raytheon Co., Lockheed Martin Corp., Alliant Techsystems Inc., and Northrop Grumman Corp.

Byline: ANDY PASZTOR Canada's MacDonald Dettwiler & Associates Ltd. has put its surveillance and space businesses on the block, according to people familiar with the details. Yet, while the assets [...]

The Federal Aviation Authority's rules on airline landings and takeoffs during icy conditions were intended to keep the skies safe. But differing interpretations of the regulations, coupled with an increase in sleet storms this year have created airport havoc.

Insurance companies and satellite operators continue to sue Boeing Co. for breach of contract and negligence, with the latest suits totalling $610 million. Boeing is accused of supplying defective commercial satellite equipment.

Boeing Co. has appointed Scott Carson to head its commercial-airplanes unit, replacing the departing Alan Mulally. Jim Jamieson has been appointed to the new position of chief operating officer of the unit.

Lockheed Martin Corp. of the United States is to build new manned space vehicles for the United States National Aeronautics and Space Administration. The new space vehicle is to be called Orion and is to be used in new missions to the Moon and possibly manned missions to Mars. The deal is worth more than $8.1 billion.

Airbus S.A.S. of France is implementing computer automation in their aircraft to automatically steer them away from midair collisions. The automated controls would replace pilot decisions in these cases.

Boeing Co. of the United States has agreed to a pay out settlement of $615 million to the United States Department of Justice in an investigation of contract improprieties. The settlement is the largest of any military contractor accused of high-profile scandal.

EchoStar Communications Corp. of the United States posted a soaring 90 percent increase to $133 million from $70 million last year, in fourth quarter net profit. Revenue for the satellite television giant rose by almost 13 percent to $2.18 billion.

A spy-satellite product development that could not iron out the bugs has Boeing Co. of the United States seeking $400 million to $500 million to cover shut down costs from the United States government. Parts of the military contract have been switched to rival Lockheed Martin Corp.

The International Civil Aviation Organization has announced preliminary standards for flying behind the new superjumbo A380 jets to avoid hazards associated with its very powerful wake. The new standards state a distance of ten nautical miles behind a landing A380 and 15 nautical miles distance if flying directly behind an A380. Formal safety regulations are expected next year.

SES Global S.A. of Luxembourg has offered a preliminary bid of $1.1 billion to acquire New Skies Satellites Holdings Ltd. of the Netherlands and been rejected. The Dutch satellite communications services company is the fifth largest globally and revenue is up 14 percent to $179.1 million as of the end of September this year.

International sales of business jets are expected to exceed a record of 850 aircraft in 2006. Positive projections extend into 2007 with a possible leveling off into 2008 for several years.

Boeing Co. and Lockheed Martin Corp. both of the United States are considering a joint venture of their rocket programs. The proposed agreement would prevent financial losses, potentially saving the government $150 million per year with the combining of the aerospace giants' satellite launching services. The United States Federal Trade Commission is currently considering the proposal for anti-trust violations.

An affiliate of Macquarrie Bank Ltd. of Australia is in negotiations with New Skies Satellites Holdings Ltd. of the Netherlands for a possible acquisition. A bid for the satellite communications services company could reach as high as $1.3 billion.

Eutelsat S.A. of France is to launch a 1.8 billion Euros initial public offering this month. The third largest satellite communications services company in the world is planning to pay down debt, finance more spacecraft production and expand through acquisitions. Eutelsat S.A. is offering 77.9 million shares between 15.25 to 17.75 Euros.

A disagreement is brewing between the United States and the European Union concerning potential safety regulations of the Airbus A380. The wake from engines of the new model aircraft are seen as a potential safety hazards. The Airbus A380 was previous cause for controversy sparking a trade dispute.

Eutelsat S.A. of France, has decided to continue broadcasting television programming promoting the banned Falun Gong spiritual movement. New Tang Dynasty Television has inspired international debate concerning the Chinese government's treatment of religious dissidents and freedom of the press.

The United State Army has restructured its $100 billion+ Future Combat System contract with Boeing Co. so that it has full safeguards in place. The Army will have more control over management functions.

L-3 Communications Holdings Inc. is under investigation by the Defense Department after defective emergency radio parts were supplied by one of the company's units. The radios are used to locate downed military pilots.

PanAmSat Corp. of the United States is planning an initial public offering of approximately $1 billion. Private equity investors are planning to cash out investments in the satellite communications sector by going public.