Airbus began construction of its Mobile Engineering Center with a groundbreaking ceremony Monday. The center is scheduled to open in January 2007 and will employ at least 150 engineers at full capacity. It will be responsible initially for assignments related to the A350.

Bombardier announced yesterday that it is putting the CSeries aircraft program on hold after failing to find a launch customer for its proposed 110/130-seat jet, but it stopped short of pulling the plug entirely. "We are not talking a cancellation. We are putting together a team to rethink the program," Bombardier Aerospace President and CEO Pierre Beaudoin said during a conference call. "We have to have firm orders before moving ahead on CSeries." The company is looking for potential partners in growth areas like China, India and Russia, "including Sukhoi," he confirmed.

Etihad Airways took delivery of the first of five new 777-300ERs Monday in Abu Dhabi. The aircraft, which seats 378 in two classes and has space for 20 tons of cargo, will be used on Etihad's Frankfurt service.

South African Express Airways signed a $48.5 million contract to acquire two 74-seat Q400s, the airframer announced. The airline, which will be the first African carrier to operate the turboprop, flies an all-Bombardier fleet of seven Dash 8-300s and six CRJ200s.

Morgan Stanley said it entered into a definitive agreement to sell operating lessor AWAS (formerly Ansett Worldwide Aviation Services) to Terra Firma, a European private equity firm, for $2.5 billion in cash plus the assumption of liabilities.