Calling the problems associated with A380 production "a major shock for Airbus and a major disappointment to all our stakeholders," EADS co-CEO and Airbus President and CEO Louis Gallois yesterday said the manufacturer "most probably" will report negative EBIT for 2006 and will trail Boeing in aircraft orders for the first time since 2000.

ARINC signed a contract with Cathay Pacific Airways to provide an Iridium-based voice telephone solution for seven CX 747-200 freighters. CX is the Iridium service's first commercial airline customer.

Airbus said it reached agreements this week to sell 26 A330-200 freighters, with 20 going to US lessor Intrepid Leasing and six to India's Flyington Freighters, marking the first sales of an aircraft type launched last summer.

Embraer said yesterday that it delivered 25 commercial aircraft in the fourth quarter, bringing its total to 98 for full-year 2006 led by 40 E-190s. The Brazilian manufacturer took 67 firm orders for its commercial segment during the quarter, increasing its firm order backlog 11.3% over the previous quarter to $14.8 billion. It also raised its delivery guidance to 165-170 in 2007 including executive and defense/government aircraft. Its total deliveries for 2006 were 130. It did not break down projected 2007 deliveries by segment.

GE said it will acquire Smiths Aerospace for $4.8 billion in cash, combining its aircraft engine business with Smiths' broad array of avionics equipment and components, under terms of a blockbuster agreement announced by the companies Monday. "The acquisition will broaden GE's offerings for aviation customers by adding Smiths' innovative flight management systems, electrical power management, mechanical actuation systems and airborne platform computing systems to GE Aviation's commercial and military aircraft engines and related services," GE said in a statement.