Boeing yesterday announced a deal with Southwest Airlines to serve as lead integrator for the carrier's 737-300/-700 flight deck upgrade to incorporate performance-based navigation capabilities. Contract includes design, installation and integration of hardware and software from multiple suppliers as well as flight testing and certification. Integration program calls for 737-300 modification with avionics supplied by GE Aviation, Honeywell and Rockwell Collins. GE Aviation said it won a $40 million deal with Southwest to provide its SDS-6000 large area display suite.

British Airways placed a firm order for six E-170s and five E-190SRs, plus options on a further three 190SRs, for its wholly owned BA CityFlyer regional subsidiary. The firm aircraft are worth $376.5 million at list prices "based on January 2008 economic conditions," and the deal could reach $489 million if all options are confirmed, Embraer said.

Five passengers remained in the hospital yesterday as the US National Transportation Safety Board's Go Team continued to investigate the Saturday evening crash of a Continental Airlines 737-500 that veered from Denver International Airport's runway 34R while on its takeoff roll, crossed a field and a taxiway, careened down a 40-ft. hill and caught fire.

ANA confirmed the postponement of selection of its future large aircraft type (ATWOnline, Nov. 19), citing the "unforeseen changes to its operating environment since the financial crisis of September this year." The airline is considering the A380, 747-8 and 777-300ER as its future long-haul flagship. It said its "New Aircraft Selection Committee will remain on hold until the company deems market conditions conducive to resuming the selection process."

Boeing 787 watchers will see some "action" at the Everett plant by mid-to-late February, insiders say, with word from the factory floor indicating that the first aircraft, ZA001, will have all fastener issues resolved by the end of this month and will be rolled out for repainting at the end of February.

Athens Airways took delivery of the first of four ex-Flybe ERJ-145s from Aircraft Solutions in a transaction arranged by Airstream International Group. It will enter service next month. AS acquired 16 145s from Flybe last year and 10 have been placed by AIG.

SriLankan Airlines announced the launch of a "re-fleeting program" with the Nov. 30 delivery of an A320 on a three-year lease from AWAS. The two-year-old aircraft is the first to join the airline in more than four years and will seat 20 in business class and 132 in economy. A second A320 is scheduled to arrive this month, with a third and fourth expected in the 2009 first quarter and a fifth sometime next year. They will replace existing A320s, with two to leave the fleet by year end.

Volvo Aero said its low-pressure compressor for the EU's VITAL (Environmentally Friendly Aero Engine) successfully completed testing performed in partnership with the Swedish Defense Research Agency at Sjoland & Thyselius Aerodynamic Research Centre AB in Stockholm. According to Volvo, the LPC is designed to be 15% lighter than current LPCs. Increasing the performance of each stage permitted a reduction in the total number of stages, thus saving weight and length. "The testing. .