Honeywell Aerospace said yesterday that it has reached agreement to sell its Consumables Solutions business that distributes fasteners and aerospace hardware to B/E Aerospace for $1.05 billion pending regulatory approval.

Hainan Airlines is joining with the Yunnan local government in southwestern China to launch Yunnan Airlines, which will be comprised mainly of the assets of Lucky Air, an HNA subsidiary launched in 2006 that apparently will cease to exist. Based on an agreement signed between HNA and the Yunnan government, another HNA subsidiary, Grand China Air, will be the controlling stakeholder of the new Yunnan Airlines. The entity is reported to have a registered capital of more than CNY3 billion ($43.3 million).

China's airlines are moving to upgrade their fleets and cut international flights to mitigate the impact of skyrocketing fuel costs. China Southern Airlines President Liu Shaoyong told ATWOnline at the IATA AGM in Istanbul last week that the carrier plans to phase out 12 MD-80s in October with the aim of improving fuel efficiency. In addition, it cut some international flights on June 1, particularly Southeast Asia routes from Guangzhou that an industry analyst said "are mainly focused on tourists [and] make less profit."

Farnair Europe will add an ATR 72 freighter and two Beech 1900 freighters to its fleet. Farnair operates express delivery services for a number of integrators in Europe.

Air New Zealand CEO Rob Fyfe said the carrier is growing increasingly confident that commercial quantities of environmentally sustainable fuels that meet all its stringent criteria will become available over the next few years.

Aeroflot last week confirmed that it plans to lease an additional 19 A320 family aircraft. No other details were provided. Interfax reported that the carrier plans to add up to 65 Airbus aircraft in the future. It already operates 36 narrowbody Airbus aircraft. It reportedly wants to double its current level of domestic services by 2014. CEO Valery Okulov told ATWOnline at the IATA AGM in Istanbul last week that SU is looking for a European airline with which it can form a strategic partnership. "We are considering Austrian Airlines. .

Hawaiian Airlines will lease four 717-200s from Boeing Capital Corp. to "better meet the needs of Hawaii's interisland travelers" following the shutdown of Aloha Airlines two months ago (ATWOnline, June 3). Two aircraft will enter service in September and others in November and December. HA currently flies 11 -200s and operates 150 daily inter-island flights. In support of its inter-island expansion it has hired 230 additional employees and plans 160 more.

Emirates will receive its first A380 on July 28 at a ceremony in Hamburg. First service will be from Dubai to New York JFK, possibly as early as Aug. 1. At the recent IATA AGM in Istanbul, EK President Tim Clark made waves when he announced that the airline had no plans to reduce flying because of soaring fuel prices and the softening of the market. "We are not cutting back but in fact are looking to expand," he told delegates. The expansion could include the conversion of an order for 10 787-8Fs to the passenger version, according to some observers in Dubai.