The group of Italian investors including Air One that reportedly had been willing to invest up to €1 billion ($1.4 billion) in an Alitalia restart withdrew from negotiations with the carrier's labor unions Friday, leaving the troubled airline on the verge of collapse.

"It's one small step for mankind," said air traffic services provider Airways New Zealand CEO Ashley Smout following the arrival of Air New Zealand Flight 8, the first "gate-to-gate optimized flight," at San Francisco International Friday. The 777-200ER flight, dubbed ASPIRE 1 (Asia and South Pacific Initiative to Reduce Emissions), started in Auckland and consumed 4,600 litres less fuel than normal using a host of strategies to minimize fuel usage. That translated into 12 tons fewer CO2 emissions. ASPIRE is a joint initiative among US FAA, Airways NZ and Airservices Australia.

Alitalia labor unions yesterday continued negotiations on whether to accept a restructuring plan and associated layoffs and new working conditions with the Italian government, AZ Administrator Augusto Fantozzi and representatives from CAI, the group of Italian investors including Air One that reportedly is willing to invest up to €1 billion ($1.4 billion) in an AZ restart.

Developed by Boeing and certified two years ago in order to allow Gol to fly more efficiently to and from Brazil's urban airports, the 737-800 Short Field Performance aircraft now will help the company target business travelers more comfortable with the Varig name.

Goodrich yesterday was awarded the contracts to supply the air data system and ice detection system on the A350 XWB, deals valued at more than $600 million over 20 years. The work will be performed by the company's Sensors and Integrated Systems division in Burnsville, Minn.

Boeing CFO James Bell said yesterday that "there are still significant issues" separating the company and the International Assn. of Machinists and Aerospace Workers and conceded that the ongoing strike means "at least a one-month [further] delay" in the 787 program. Speaking to a Morgan Stanley investors conference, available via webcast, Bell said Boeing and IAM are "sort of in a cooling-off period" following intensive talks last week that failed to prevent the work action (ATWOnline, Sept. 9).

S7 Airlines plans to present a "sensational offer" for a stake in Austrian Airlines Group.

Afriqiyah Airways took delivery of its first of three 124-seat, CFM56-5B-powered A319s, Airbus announced. It also has 11 A320s (with two delivered), three A330-200s and six A350s on order.