The South Korean defense ministry has ensured production of the Korea Aerospace Industries (KAI) T-50 series until at least 2016 by ordering about 40 of the type’s light-attack variant, the FA-50. The ministry’s Defense Acquisition Program Administration has given KAI a 1.1 trillion won ($1.01 billion) contract for FA-50 production, the company says. It does not disclose the number of aircraft covered by the contract, but an industry official says it is “about 40.”

Air China remains in negotiations with Airbus for an intended order for 100 aircraft, despite the carrier’s board of directors approval of the deal, says a manufacturing industry official. Announcing the board’s decision, Air China also told the Shanghai Stock Exchange that it will dispose of six Airbus A340s. Affiliate Shenzhen Airlines is part of the discussions for the intended order, which mainly will be from the A320 family, company secretary Rao Xinyu tells the Wall Street Journal.

China appears to be lifting its six-year ban on privately-owned airlines, provisionally approving the establishment of a carrier in Yunnan, a southwestern province, that will have no direct government links. Ruili Airlines, which plans to operate six Boeing 737-700 and 737-800 aircraft, will be fully owned by the Yunnan Jingcheng Group, although it initially will use technical staff from Sichuan Airlines and the China Civil Aviation Flight College, says the Civil Aviation Administration of China (CAAC) in the statement of its provisional approval.