Singaporean budget carrier Tiger Airways will relax its resolutely low-cost business model by adding more service in order to get rights to fly to Indonesia. Indonesian authorities, resisting intrusions by budget carriers, will allow Tiger to fly the lucrative route between Singapore and Indonesian cities, including Jakarta and Denpasar, only by designating it as a “boutique” airline — which means one that offers more service than Tiger traditionally does in the business that it has modeled on Southwest Airlines and Ryanair.

South Korea will develop an air combat engagement model and reconfigurable flight simulator that can model and simulate the combat effectiveness of various different fighter types, including its F-15K, F-16C/D and FA-50 by November 2011. The Agency for Defense Development, a government body responsible for all defense-related research and development, has issued a request for proposals for the indigenous engagement-level model and flight simulators, aiming at detailed analysis of air-to-air and air-to-ground combat.

Money-losing airline Merpati and its parent, the Indonesian government, are asking Xi’an Aircraft of China to cut the price and quantity of 15 MA-60 passenger turboprops that the carrier ordered in 2006. They are also seeking more favorable guarantees from the supplier, including a commitment to buy back the aircraft.