Nothing reveals the political nature of this year's debate over across-the-board budget cuts as much as the dramatic change of discourse in the weeks leading to the deadline for preventing them. After a year of hearings, press conferences and road shows clamoring for a stop to sequestration, lawmakers and the Obama administration are now met with the deadline. Late last week, they appeared to have rationalized missing it.

In the drive to reduce aircraft fuel consumption and emissions, the traditional jet-fuel burning auxiliary power unit (APU) is being targeted for replacement by a clean-operating fuel cell, which only emits water vapor. In 2012, Boeing flew a regenerative fuel cell in its 737 EcoDemonstrator. Developed by Japan's IHI Aerospace, the fuel cell generated electricity and was “recharged” by the engines, surplus power being used to split water into oxygen and hydrogen, with the hydrogen then used in the fuel cell.

Widebody operators face a new supply and demand paradigm.

Asia-Pacific airlines are focused on tapping into the strong demand growth projected for their region. But the vast potential of these markets means competition is fierce, and while strategies vary, the common theme is that bold moves are considered necessary for airlines to prosper. China is still viewed as the major prize, although opportunities abound elsewhere in Asia. Even the more mature Pacific-Rim airline markets such as Japan and Australia offer growth prospects.

Many have wondered whether Air Berlin could survive the slow winter season without another capital injection and/or loan from its biggest shareholder, Etihad Airways. After all, the airline's reserves had been shrinking and another short-term restructuring program, Turbine 2013, was announced.

Aurigny is first European operator to use satellite approach system

North Korea's successful launch of a satellite in December after 14 years of attempts put the hermit kingdom one step closer toward deploying an intercontinental ballistic missile. And Iran's nuclear weapons program—and the threat of an Israeli attack to cripple it—will keep tensions simmering in the Middle East.

When I began writing this column eight years ago, airlines were reeling as oil prices soared above $50 a barrel. Lockheed Martin was hoping to ramp up production of the Joint Strike Fighter in 2009, and Wall Street analysts were beginning to question whether a run-up in defense stocks had much steam left. Airbus was preparing to launch development of the A350 in response to Boeing's 7E7 (now 787), and the business jet market was embarking on a sales surge that would end in a spectacular crash.