Mitsubishi Heavy Industries has added Pratt & Whitney as a potential engine supplier for its proposed regional jet while significantly raising the aircraft's installed thrust. The original two versions of the aircraft, one with a nominal 70 seats and one with 90, have become six: a standard, extended-range and long-range version for each of the two fuselage lengths.

Qantas budget offshoot Jetstar says it is negotiating to place a substantial order for Airbus aircraft, presumably more A320 family jets to operate alongside those it already flies, mostly on domestic routes. The airline has committed itself to Boeing 787s for long-haul operations and plans to phase out the A330s it flies as interim equipment. "We are talking to Airbus at the moment for a long-term big order," says Chief Executive Alan Joyce, adding that the aircraft are needed by 2009.

A key Japanese government department plans to allocate ¥40 billion ($330 million) in subsidies for a Mitsubishi Heavy Industries project for a large regional jet, greatly increasing the likelihood of the country finally establishing itself as a supplier of commercial aircraft. With Boeing 787-based carbon-fiber construction and new engines, the proposed Mitsubishi aircraft could present a serious challenge to Embraer, Bombardier and two other companies developing such jets, Sukhoi and China's Avic I.