Australian regulators are playing a huge role in shaping the future of the country's airline industry. But with crucial rulings looming, the carriers' destinies will soon be back in their own hands.

North Korea said last week it would conduct its third nuclear test and continue long-range missile trials designed to reach the U.S. just as the Missile Defense Agency (MDA) was gearing up for a long-awaited return to flight of the system designed to protect the U.S. homeland from such an attack. The vow came a day after the U.N. Security Council agreed to a Washington-backed set of sanctions for Pyongyang in response to its December rocket launch.

Plans for a 90-seat turboprop are rapidly taking shape on the drawing boards of European regional airliner manufacturer, ATR. On the back of a record year in terms of sales and deliveries, the company has also been quietly working on a business plan, which they hope will urge joint owners EADS and Finmeccanica to green-light the project this year.

No end in sight as battery-power probe intensifies.

When safety issues arise with products used by millions of Americans, Congress is often quick to exercise its oversight role. But for the most part, lawmakers are willing to let the FAA and Boeing take time to discover just what caused the 787 battery fires that have grounded the fledgling fleet (see page 30). Sen. Jay Rockefeller (D-W.Va.), chairman of the Senate Commerce, Science and Transportation Committee who plans to retire in 2014, is one exception. He had a brief outburst last week pressing for congressional inquiry into the matter.

Air Iceland raises the bar with avionics upgrade

The “when” may be in question, but the “what” is becoming clearer as NASA pushes ahead with research into future generations of civil transport aircraft. Not only do significant fuel-burn, emissions and noise reductions look increasingly feasible, but advanced computational tools are taking shape that will enable fast, efficient design and analysis of new aircraft.

NASA's loss is Boeing's gain, as former space shuttle program manager John Shannon retires to head up the company's International Space Station program. “It is really great to be back in an operational program again,” Shannon says. Not so great for his space-agency bosses, who continue to see rising stars bail out while Congress and the White House squabble over NASA's future.