China is looking at merging China Eastern Airlines with smaller hometown rival Shanghai Airlines, rescuing the ailing big-three carrier at the cost of reducing competition at the country’s largest city. The proposed merger means that the Chinese government has almost certainly decided against consolidation of the three main state airlines. China Eastern would be recapitalized before merging with Shanghai Airlines, says China Eastern general manager, Cao Jianxiong, who adds it might restart negotiations with Singapore Airlines.

Japan’s ATD-X stealth demonstrator project will step up a gear next year, according to the Defense Ministry’s budget request, which also seeks accelerated upgrades of F-15J fighters. A laser close-in defense weapon is also proposed for development, although its specific application is unclear. Both the F-15J upgrades and the ATD-X funding are a response to Japan’s failure to secure the Lockheed Martin F-22 Raptor as its next fighter.

Boeing will support Mitsubishi Aircraft in the development, marketing and after-sales support of the MRJ regional jet. Selling and supporting the aircraft in service have been identified as one of the program’s biggest challenges. Fuji Heavy Industries, meanwhile, also plans to support development of the aircraft, according a media report apparently sourced from that company. Initially, Fuji will lend a hand only in design of the center wing box and other major parts, but it hopes later to take part in the manufacturing, too.