China Southern Airlines deepened its cooperation with Air France by signing a memorandum yesterday to sell a 20% stake in its Nanlian Air Catering Co. to AF subsidiary Servair for €7.3 million ($10.8 million). Launched in 1989, Nanlian has registered capital of CNY120 million ($16.7 million) and previously was held by CZ (75%) and Hong Kong Ruilian Investment (25%).

Boeing said its mechanics "began major assembly" of the first 777 freighter in Everett yesterday (ATWOnline, Dec. 17).

Boeing recorded a bumper year in 2007 with an 84% increase in net income to $4.1 billion on revenues that rose 8% to $66.4 billion as backlog reached a record $327 billion, up 31% on the previous year. Commenting on the result, Chairman Jim McNerney said, "The 2007 results demonstrate the kind of quality financial performance we can achieve through our simultaneous focus on growth and productivity. Despite some development program challenges, we are a strong company growing stronger, and we expect continued improvement in our financial results in 2008 and beyond."

UPS earlier this month for the first time operated two revenue flights simultaneously using Aviation Communication & Surveillance Systems' ADS-B-based SafeRoute program aboard 757-200Fs and plans to conduct such flights about once a week over the next two months as it gradually equips aircraft and trains pilots.

Rolls-Royce reached a deal with Oman Air for Trent 700 engines to power its five purchased and two leased A330s that begin delivery in 2009 (ATWOnline, Nov. 14, 2007). Value of the contract, which includes a TotalCare package, is $460 million at list prices.

Eurofly has decided not to convert its original order for three A350s into the redesigned XWB, preferring not to wait the extra two years for delivery, it said in a stock exchange filing cited by Bloomberg News. It originally had expected delivery in 2013 (ATWOnline, Oct. 14, 2005). It currently operates eight A320s and four A330s and said the contract cancellation will not impact its bottom line negatively.

Airbus said MatlinPatterson Global Advisers placed an order for six A330-200 freighters for placement with companies in its portfolio such as Varig Logistica and Global Aero Logistics (holding company of ATA Airlines, World Airways and North American Airlines). Airbus now has sold 72 -200Fs to eight customers.

STG Aerospace said Boeing will extend its SafTGlo deal for five more years. Valued at $1.5 million, the contract will increase production for 737NGs to more than 30 aircraft per month during 2008.