WITH A DEMONSTRATOR ENGINE IN

China Eastern Airlines signed an aircraft purchase agreement with Boeing for 30 737NGs yesterday in Shanghai, according to a statement released by the Shanghai Stock Exchange. Boeing did not acknowledge the specifics of the order, saying only that CEA "announced the selection of additional" aircraft and that it will issue a statement "when the order process is completed." The deal is worth CNY13.98 billion ($1.94 billion) at list prices, but CEA said it will pay less.

The Alitalia board met this week to approve its 2008 budget and said it would look to raise about €750 million ($1.1 billion) over the next five months in order to maintain its cash in hand "at adequate operating levels" as speculation swirled in Italy about the effect that the fall of Prime Minister Romano Prodi's government will have on AZ's merger with Air France KLM.

Virgin Group is in talks with a potential Russian partner about launching an airline in the market, Chairman Richard Branson said in Moscow yesterday. "Now is the time for Virgin to come to Russia," he said at a news conference during an investor conference he is attending. His remarks were reported widely. "We are in discussions with a Russian partner," he said. "We will announce in three months who that partner will be." Branson added that it would be better to do "something from scratch" rather than partner with an existing carrier.

China Southern Airlines deepened its cooperation with Air France by signing a memorandum yesterday to sell a 20% stake in its Nanlian Air Catering Co. to AF subsidiary Servair for €7.3 million ($10.8 million). Launched in 1989, Nanlian has registered capital of CNY120 million ($16.7 million) and previously was held by CZ (75%) and Hong Kong Ruilian Investment (25%).