Air France is urging manufacturers to launch a medium-haul aircraft program that will generate greater fuel efficiency gains compared to the current 737 and A320 family offerings.

A Sudan Airways A310 en route from Damascus to Khartoum caught fire after landing, leading to as many as 120 fatalities, according to some reports, though it does appear that many passengers were able to escape. The aircraft, believed to be carrying 217 passengers and crew, landed at Khartoum in the midst of a sandstorm and heavy rain, according to numerous reports. A Sudanese official said on Sudanese TV that "it landed safely. . .and [pilots] talked to the control tower which told them where to taxi. At this moment an explosion happened."

Honeywell Aerospace said yesterday that it has reached agreement to sell its Consumables Solutions business that distributes fasteners and aerospace hardware to B/E Aerospace for $1.05 billion pending regulatory approval.

Hainan Airlines is joining with the Yunnan local government in southwestern China to launch Yunnan Airlines, which will be comprised mainly of the assets of Lucky Air, an HNA subsidiary launched in 2006 that apparently will cease to exist. Based on an agreement signed between HNA and the Yunnan government, another HNA subsidiary, Grand China Air, will be the controlling stakeholder of the new Yunnan Airlines. The entity is reported to have a registered capital of more than CNY3 billion ($43.3 million).

China's airlines are moving to upgrade their fleets and cut international flights to mitigate the impact of skyrocketing fuel costs. China Southern Airlines President Liu Shaoyong told ATWOnline at the IATA AGM in Istanbul last week that the carrier plans to phase out 12 MD-80s in October with the aim of improving fuel efficiency. In addition, it cut some international flights on June 1, particularly Southeast Asia routes from Guangzhou that an industry analyst said "are mainly focused on tourists [and] make less profit."