Qantas Airways CEO Geoff Dixon said he believes the airline industry is on the verge of a period of consolidation into a few very large carriers that will be able to cope better with higher fuel costs.

Continental Airlines and nine Star Alliance carriers asked the US Dept. of Transportation to allow CO to join the group already holding antitrust immunity. CO last month declared its intention to leave SkyTeam and join Star (ATWOnline, June 20).

Rockwell Collins reached a deal with ILFC to add its Digital Programmable Audio Video Entertainment System as an option included with its PAVES analog technology onboard 737NGs. System features a broadcast digital server with moving map hosting capabilities.

Copa Airlines placed a firm order for two additional 737-800s for delivery in 2010 and 2011, increasing the total number of 737NGs it has on order to nine. Its fleet currently is comprised of 27 737NGs and 13 E-190s. Its -800s seat 16 in business class and144 in economy.

A slowing economy and the ripple effects of the Sichuan earthquake helped produce a 23% year-over-year drop in Chinese airlines' combined net income in the first half of 2008 to CNY3.7 billion ($540.9 million) from CNY4.8 billion in the year-ago period. China Eastern Airlines reported a CNY368 million profit while Air China enjoyed a 5.5% increase in operating revenue to CNY24.21 billion in the first half. Passenger boardings totaled 16.6 million. CA did not release its profit figure in its mid-year work report.

Cargolux Airlines International took delivery of its 16th and final 747-400F powered by Rolls-Royce RB211-524H-Ts. New aircraft comes with a unique livery, with the traditional red-and-white stripes fading away instead of reaching to the tail. This hints at a revamped design to be introduced on the 747-8F, Cargolux noted. From 2009 on, it will receive 13 GEnx-powered 747-8Fs that gradually will replace the -400F fleet.

Airline CFOs around the world are pessimistic about industry finances over the next 12 months, expecting soaring costs to erode profitability further despite rising traffic, according to the IATA Business Confidence Index released yesterday.

Air Atlanta Icelandic signed a wet-lease agreement with Saudi Arabian Airlines, adding a sixth 747 to the fleet AAI operates on behalf of Saudi Arabian. The 747-200SF will operate cargo services between Dammam, Shanghai, Hong Kong and Brussels for one year.