The reorganization of the Chinese civil aviation industry continues apace, with listed Xi'an Aircraft International Corp. completing the previously flagged formation of two joint ventures with siblings in the Avic I aerospace conglomerate.

The Japanese defense ministry has asked for 15.7 billion yen ($137 million) to proceed with its planned stealth fighter demonstrator in the coming fiscal year, which for Japan begins April 1. Proposals to accelerate upgrades for Japan's F-15Js also are taking a concrete form, with the ministry requesting 112.3 billion yen in fiscal 2008. Improved radars are expected. The number of aircraft involved isn't known, but Japanese media say upgrades that had been planned for the coming three years will all be done next fiscal year.

Singapore Airlines' negotiations for a stake in China Eastern are increasingly unlikely to succeed. The ever-profitable southeast Asian carrier is rethinking the wisdom of investing in the weakest of China's big-three airlines because it finds the asking price far too high and is uncomfortable with conditions attached to the deal, says a source who has been briefed on the talks, which Singapore Airlines described in May as being at an advanced stage.