Embraer reported $390.1 million in 2006 net income, a 13% drop from the previous year, which the company attributed to rising costs and fewer deliveries. It reported net sales of $3.8 billion compared to sales of $3.83 billion in 2005, while the firm order backlog increased 11% to $14.3 billion.

EADS and Russia's United Aircraft Corp. signed four cooperation agreements last week in conjunction with Aeroflot's order for 22 A350 XWBs (ATWOnline, March 23). The first establishes Russia's role in A350 construction and pledges 5% airframe participation (ATWOnline, Dec. 11, 2006). "The discussions about which components of the aircraft will be designed and built in Russia are still ongoing," EADS said.

ABX Air will buy a former American Airlines 767-200 and convert it to a freighter, the Ohio-based cargo carrier announced. Cost for purchase and conversion will be approximately $20 million and the aircraft will be available for ACMI charter service by early next year. "We intend to seize opportunities to add to our Boeing 767 fleet when they become available under attractive terms," ABX President and CEO Joe Hete said. ABX has 35 767s in service, including 29 for DHL. It plans to fly 42 of the type by early next year.

GE Aviation said First Choice Airways selected the GEnx to power the four 787s it ordered earlier this month (ATWOnline, March 8) with an engine order valued at more than $125 million. GE said the 830 GEnx orders from 28 customers are worth more than $10 billion.

Alenia Aeronautica yesterday delivered the first two carbon fiber fuselage sections of the 787 from its plant in Grottaglie. The central 8.5-m. section and the central-rear 10-m. section were loaded on Boeing's 747-400LCF and sent to Global Aeronautica's facility in Charleston, where they will be integrated before heading to Seattle. Alenia said it accounts for 14% of the 787's structure.

QantasLink is increasing its fleet of 717-200s from eight to 11 as part of a renewed operating agreement with National Jet Systems for an additional five years. Qantas Group GM-Regional Airlines Narendra Kumar said the move will increase QantasLink's total jet and turboprop fleet to 49 aircraft, which typically serve regional routes within Australia. NJS provides crews and maintenance for the 717s. The first additional aircraft will enter service in August and be based in Perth, with the other two entering service in October.

LAN Airlines yesterday converted 15 options for A320 family aircraft into firm orders. The options were part of the carrier's 2005 order for 25 firm A318s and A319s (ATWOnline, July 1, 2005). LAN and its affiliates currently operate 15 A319s and 15 A320s, Airbus said.

American Airlines will make an announcement regarding fleet renewal "in short order," according to Chairman and CEO Gerard Arpey, who conceded that the carrier's more than 300 MD-80s burn too much fuel. He said 737NGs may be a viable replacement.