The outgoing Italian government met with unions yesterday and said afterward that it hopes to bring Air France-KLM back to the negotiating table. Meantime, leaders of the center-right coalition favored to triumph in this weekend's elections have toned down their opposition to a merger and appear willing to negotiate.

SunExpress, the joint venture between Lufthansa and Turkish Airlines, said it will be expanding its fleet to up to 25 aircraft. It will take delivery of at least eight Boeing aircraft by 2010, including two more 737-800s during the summer. It currently operates 11 -800s and four 757-200s. It opened its third base at Istanbul Sabhia Gokcen on April 9 and started flights to Antalya, Izmir, Berlin Schoenefeld, Hanover and Cologne.

Philippine Airlines said it will acquire six 76-seat Q400s and nine 50-seat Q300s that will be delivered in the next 4-6 months. Aircraft are valued at $150 million, PAL said, and will be used to "boost trade, tourism and local economies in rural island communities." It did not indicate the source of the aircraft.

Pratt & Whitney yesterday announced the launch of the second phase of ground testing for its Geared Turbofan demonstrator engine. Tests analyzing engine performance, acoustic characteristics and the nacelle system are underway at Pratt's facility in West Palm Beach. "We have analyzed the data from the first phase of ground testing and we are delighted by the performance of the Geared Turbofan engine," VP-Next Generation Product Family Bob Saia said.

Air New Zealand and Qantas yesterday confirmed they would be seeking financial compensation from Boeing as a result of the newly announced delays to the 787 program. Other customers preferred to remain quiet following the manufacturer's Wednesday revelation that the 787's first flight would be delayed an additional six months to the 2008 fourth quarter (ATWOnline, April 10). Meanwhile, both ANZ and QF said they expected the announcement.

American Airlines' schedule continued to be impacted heavily by FAA-mandated MD-80 inspections yesterday as the carrier cancelled another 922 flights--approximately 40% of its schedule--while attempting to fly out of the accompanying public relations storm.

Kuwait Airways said it plans to lease up to eight aircraft after receiving "verbal approval" from the government to lease six new aircraft from October until the end of 2009 and negotiate the lease of an additional two for the upcoming summer season, the Arab Air Carriers Organization announced. The airline is considering new routes to Canada, Australia, Japan and South Africa.

Boeing yesterday released details of its revised 787 program schedule, as well as data concerning the program's progress, in conjunction with the announcement that the aircraft's first flight will be delayed until the 2008 fourth quarter (see story above). Pat Shanahan, 787 VP and program manager, said, "The work that remains to be done on the first airplane is well defined and we can see our way to, and have confidence in, the new milestones we have set for it."