S7 Airlines took delivery of two new 164-seat A320-200s last week on lease from ILFC. The aircraft already are in service. S7 plans to take six more A320s this year. Its fleet now comprises 17 A319-100s, two A310-300s, five A310-200s, four A320-200s, three 737-500s, two 737-400s, nine Il-86s and 27 Tu-154Ms.

Cathay Pacific Airways plans to phase out 23 747-400s beginning in 2013 in an effort to realize fuel savings of 22% per seat. COO John Slosar told Hong Kong media that the carrier is considering a variety of replacement aircraft and that "the A380 is also an option." In the interim, it will raise its fuel surcharge 37% from June 1 in an effort to negate 40%-50% of the increase in fuel prices. CEO Tony Tyler said fuel now accounts for 40% of CX's total operating costs, up 10 points from last year.

JetBlue Airways will defer delivery of 21 A320s to 2014-15 from 2009-11 to "help us further moderate our growth rate in 2009 and beyond, which will enhance liquidity and defer future debt obligations," CEO Dave Barger said.

Gulf Air ordered 20 A330-300s and 15 A320s, a commitment that will more than double the Bahraini carrier's Airbus fleet, the manufacturer announced yesterday. The airline already operates 10 A320s, six A330-200s and nine A340-300s and in January signed a contract with Boeing for 16 787s (ATWOnline, Jan. 21).

GKN Aerospace and Rolls-Royce established a joint venture R&D company to explore the use of composite materials in aero engine fan blades under a deal announced yesterday. Funding is put at $11 million, with Rolls claiming a 51% stake. JV activities will build from composite blade applications of the VITAL program.

Kalitta Air 747-200F crashed over the weekend as it attempted to take off from Brussels en route to Bahrain, coming to a stop beyond the end of the runway and splitting into at least two pieces. Although reports vary, it does not appear that the aircraft ever was fully airborne. Its fuselage split in the middle and it likely will be written off. All five crew escaped and four were hospitalized with what were described by local officials as minor injuries.

Moskovia Airlines An-12 freighter crashed Monday in a forest 30 km. from the Siberian city of Chelyabinsk, from which it had departed just 10 min. earlier en route to Perm in the Ural Mountains, killing all nine crew aboard. The aircraft reportedly was flying without cargo, having been unloaded at Chelyabinsk. Russia's Emergency Situations Ministry said that 8 min. after takeoff, "the crew reported to the air traffic controller that smoke was in the aircraft cabin." The freighter disappeared from radar 2 min. after that report and wreckage was found hours later in the forest.

British Airways signed a firm contract with Airbus for two A318s. It will use the aircraft to launch all-business-class services between London City and New York scheduled for 2009. The A318 last year was certified for steep approach after compatibility tests at LCY.