Airbus said yesterday it is taking the "precautionary measure" of lowering A320 family production from 36 to 34 aircraft monthly starting in October and will maintain A330/A340 production at the current level of 8.5 per month rather than increasing the rate to 10 as previously planned.

CFM International announced that Lufthansa selected the CFM56-5B to power 27 A319s/A320s it has on order. Contract is worth approximately $375 million and includes CFM's Tech Insertion option. Deliveries will commence this year and continue through 2012. LH currently operates more than 150 CFM56-powered Airbus and Boeing aircraft, the Snecma/General Electric joint venture said.

Copa Airlines this week took delivery of its 43rd aircraft, a 160-seat 737-800.

Air France's first A380, powered by Engine Alliance GP7200s, completed its inaugural test flight last Thursday, the engine-maker announced. Four-hr. flight was followed by Monday's journey to Hamburg, where it will undergo painting and interior customization ahead of October delivery. AF has 12 A380s on order.

AWAS signed a lease deal with CanJet Airlines for one 737-800.

Singapore Airlines management announced an additional capacity cut and said it has met with three staff unions to discuss its plans for "mitigating the impact of the global economic downturn." In a statement released Monday, the airline said that falling advance bookings prompted it to reduce capacity in the fiscal year beginning April 1 by 11% year-over-year. SIA will ground 17 aircraft, 13 more than previously planned. It originally planned to convert one aircraft into a freighter and return three others to lessors.

Rolls-Royce delivered 987 commercial aviation engines last year, up 16% year-over-year and the highest total since 2001. Civil aerospace revenue rose 11% to £4.5 billion ($6.43 billion) and the value of Rolls' order book climbed 21% to £43.5 billion. The division reported an underlying profit before financing of £566 million, up 0.4% from the prior year. The group's full-year net loss was £1.35 billion, reversed from a profit of £600 million in 2007. Financing costs and foreign exchange losses were the principal culprits.

The US National Transportation Safety Board is investigating whether icing played a role in last Thursday night's Colgan Air/Continental Connection crash outside Buffalo. NTSB Member Steven Chealander, who is leading the investigation, said the Q400's cockpit voice recorder indicated that "the crew discussed significant ice buildup, ice on the windshield and on the leading edge of the wing."