China Eastern Airlines said it sealed a deal to buy 10 A320s valued at $613 million. The carrier said in a statement that relevant government authorities have approved the transaction and the 10 aircraft are set to be delivered between March 2011 and June 2012. They will be used to meet increasing domestic demand for short/medium-haul flights.

Okay Airways signed a lease agreement with AVIC I under which it will lease 10 of the 30 MA60s to which it committed at last year's Zhuhai Air Show (ATWOnline, July 6). It will purchase the remaining 20. Okay is the first Chinese carrier to order the aircraft, which previously had been sold in Africa. Separately, Lao Airlines sealed a deal with AVIC I for two MA60s. Earlier this month the Laotian flag carrier became the first foreign customer for the ARJ21 when it signed an LOI for two aircraft.

Continental Airlines confirmed last week that it reached an agreement earlier this month to sell 10 737-500s to Transaero for delivery later this year and in 2008. It also said it is in discussions with another airline regarding the sale of five more -500s. The sales are in line with the carrier's decision to slow 2008 capacity growth to 3%-4% from the 5%-7% ASM growth rate originally planned, with most of the slowdown coming on domestic services. "It's also necessary to keep turning over the fleet to keep it young," a spokesperson said. "We want to phase out some of our older planes."

Southwest Airlines and Boeing reached an agreement last week under which the LCC deferred delivery of five 737-700s slated to arrive in 2008-13 and exercised options for 25 additional -700s for delivery in 2013 and 2014.

Airbus said Friday that "final preparations" are underway for the October delivery of the first A380 to Singapore Airlines. The manufacturer said the aircraft returned to Toulouse after undergoing cabin interior installation in Hamburg.

British Airways chose IAE V2500s to power eight new A320 family aircraft scheduled for delivery in 2008-10. Engines are worth $136 million at list prices. BA also signed a long-term maintenance agreement with IAE. The airline currently has 67 Airbus narrowbodies, 58 of which are powered by V2500s. Nine are powered by CFMI engines.

UPS yesterday took delivery of its first CF6-80C2B5F-powered 747-400F, which it plans to deploy on international services to the Asia/Pacific. The company will take delivery of two more -400Fs this year and five in 2008. In addition, it will acquire five of the type from other carriers by 2010, bringing its total -400F fleet to 13. The -400F has a payload of 273,300 lb. with a range of 4,400 nm. It has 30 load positions on its main deck and can carry 32 smaller containers on the lower deck. It will be the first freighter in the UPS fleet with a hinged nose.

ATR signed a contract with Guernsey-based Aurigny Air Services for two ATR 72-500s valued at some $37 million. Both will be delivered in 2010 and join the carrier's current fleet of three 72-200s.