Lufthansa Cancels Boeing 747-8I Test Aircraft Order

Lufthansa has formally cancelled a Boeing 747-8I order after the manufacturer asked to retain the respective aircraft for internal purposes.

The aircraft in question, RC021, which is registered N6067U, was part of Boeing's three-strong flight-test fleet and used to test cabin systems such as air conditioning, galley and lighting equipment.

It has been furnished with Lufthansa's cabin interior and visited the German carrier's base in Frankfurt in December 2011 for promotional filming work and ground operational tests prior to the first delivery in April.

The aircraft, which is already painted in Lufthansa's basic colour scheme with a white fuselage, grey underside and blue vertical stabiliser, was to be delivered as the carrier's fifth 747-8I later in the year.

But Lufthansa revealed during the summer that it would only take four aircraft in 2012. Boeing wanted to keep the aircraft for internal purposes for two years, says the airline, and asked to "relieve" the delivery schedule.

The carrier originally ordered 20 747-8Is, which were to be delivered in batches of five every year through 2015.

Lufthansa says that it has decided, in the meantime, to cancel its order for RC021 "purely due to reasons of flexibility" but that the remaining balance of 15 747-8Is would be delivered as planned until 2015. The airline adds, however, that it might order a "factory-new" 747-8I at a later stage.

Iberia Pilots Agree To Job Cuts Talks

Iberia has reached a preliminary agreement with pilots over plans to restructure the loss-making airline by laying off staff and cutting salaries.

However, the agreement to sit down to talks does not necessarily mean that the union will support the restructuring. The airline's unions, which have been demanding a growth plan from Iberia, have until January 31 to support the airline's plans.

"We reached the same agreement with the pilots as we did with the other unions two weeks ago, which is a preliminary agreement for talks," a spokesman for the company said.

A union source said the pilots signed the agreement to kick off negotiations and that talks over the nature of job cuts would begin on Thursday.

Iberia averted strike action over the Christmas holidays through talks with its ground and cabin crews over the shape of the restructuring, but until now the pilots had been less willing to sit at the negotiating table.

Iberia plans to cut about 4,500 jobs - a quarter of the Spanish carrier's workforce - and cut salaries to become more competitive.

Kenya Airways Flight Makes Emergency Landing

A Kenya Airways plane with 56 passengers on board made an emergency landing in the Sudanese capital, Khartoum, after an engine caught fire.

The Cairo-bound Boeing 737-700 took off from Khartoum after a scheduled stopover following a flight from Nairobi. But it had to return to the Sudanese capital after 20 minutes.

Nobody was hurt, but the incident on Tuesday night left passengers stranded in a country difficult for travel because credit cards do not work in Sudan due to US trade sanctions.

"An engine caught fire and the plane suddenly lost much altitude. The pilot made a sharp turn and returned to Khartoum," said Souhair Mohamed Hawala, an Egyptian passenger. "There was panic on board. People were crying or praying."

Other passengers showed what they said were pictures from the damaged wing and engine of the plane.

A Kenya Airways official said the plane had returned with an unspecified "engine problem" and needed to be repaired in Sudan. "We don't know the cause yet," he said, adding passengers would be booked on the airline's next available flight out of Sudan.

Jet Airways Front-Runner For Etihad Investment

India's Jet Airways is the front-runner for an investment by Gulf carrier Etihad Airways, a senior Indian government source told reporters on Wednesday, adding a deal was likely in 10 days.

Etihad, seeking to widen operations in India and other Asian markets, is in the final stages of talks to buy part of either Jet Airways or grounded rival Kingfisher Airlines, an Indian government official had said on December 17.

US Clears Way For Wider In-Flight Internet

The US Federal Communications Commission has cleared the way for wider adoption of in-flight Internet services, aiming to cut by 50 percent the time needed for regulatory approval.

Newly adopted rules should boost competition in this part of the US mobile telecommunications market and promote "the widespread availability of Internet access to aircraft passengers," the FCC said in a statement.

Since 2001, the commission has cleared companies on an ad hoc basis to market in-flight broadband services via satellite.

Under a newly adopted framework, the licensing procedures will be simpler, the commission said.

Airlines will be able to test systems that meet the commission's standards, establish that they do not interfere with aircraft systems and then get the approval of the Federal Aviation Administration, the FCC statement said.