Ukraine International Airlines will lease a 737-300SF freighter from GECAS with delivery in June. It plans to lease a second early next year.

Pacific LifeCorp. subsidiary Aviation Capital Group placed an order yesterday for 17 additional 737NGs valued at more than $1 billion, Boeing announced. No delivery date was announced for the order, which previously was attributed by the manufacturer to an unidentified customer. The aircraft will be equipped with blended winglets and lift ACG's Boeing commitment to 76 737s and five 787s. Its portfolio currently contains 129 Boeing aircraft.

Midwest Airlines sold an MD-81 to Maple Leaf 119 of Florida. Meridian Aerospace Group served as exclusive agent for the seller.

Driven by strong domestic demand and yuan appreciation, China Southern Airlines increased its full-year earnings nearly tenfold in 2007, reporting a CNY1.871 billion ($267.1 million) profit compared to CNY188 million the previous year.

Newly elected Italian Prime Minister Silvio Berlusconi kept his promise and focused on Alitalia's future during his first week in office, inviting Aeroflot to negotiate a possible buy-in. However, the European Commission ended discussion of further state aid, saying the Italian government could not inject further funds until 2011. "The situation is open.

Russia's S7 Airlines reported an 80% jump in full-year profit to RUB109.7 million ($4.7 million) according to Russian accounting standards as 2007 revenue increased 25% to RUB31.12 billion. "Last year the airline demonstrated a stable increase in all the financial indicators," GD Vladislav Filev said, citing a 16% growth in passengers to 5.7 million as the primary driver. "In addition, the increase in the company's efficiency is directly associated with the renewal of the company's fleet, namely, the commissioning of 10 [A319s]."

Midwest Airlines will eliminate positions for 109 employees, including 35 pilots who will be furloughed, and reduce flights by 2.5% owing to soaring fuel costs, it announced this week. "The actions. . .will enable us to maximize revenues, reduce our cost structure, provide sufficient cash and help us weather the storm," CEO Tim Hoeksema said.

Regional took delivery of a sixth E-190, the final aircraft from a September 2005 order.