Kuwait Airways' lease deal with ALAFCO for 12 787s and seven A320s, worth a reported $3 billion, has been canceled because the airline was unable to secure government approval, the lessor said in a filing with the Kuwait Stock Exchange cited by numerous press reports.

EgyptAir signed a contract for five firm A330-200s plus three options, Airbus announced. The airline said the purchase will allow it "to continue its impressive route network growth." No engine choice or delivery schedule were announced.

AZAL took delivery of its first ATR 42-500, part of a $100 million contract signed in January for two 42-500s and four 72-500s (ATWOnline, June 19). The Baku-based carrier will take delivery of its first 72-500 later this year and the remainder in 2008.

Aeroflot said it is converting two MD-11 passenger aircraft into freighters, with Boeing to handle the modifications in conjunction with SASCO, a subsidiary of Singapore Technologies Aerospace. "By putting [the MD-11s] in the hands of the original manufacturer for conversion, we can extend the life of the aircraft and maximize their capabilities," Aeroflot-Cargo GD Andrey Goryashko said. Modification work is slated to start in November 2008. A converted MD-11 has a capacity of 205,400 lb. structural payload at a range of 3,486 nm. (6,456 km.) and is capable of 630,500 lb.

Volga-Dnepr Group, Motor Sich and Antonov Design Bureau signed an agreement at the MAKS air show outside Moscow last week to resume production of An-124-100 freighters and modernize existing aircraft of the type. VD and Motor Sich, a Ukrainian company, last winter announced the formation of a joint venture company to manage the re-launch of the An-124-100F (ATWOnline, Feb. 8). ADB said last week it will join the venture, known as GLA Cargo Aircraft. Production timelines were not announced.