NEW DELHI — India and the U.K. have signed a letter of arrangement (LOA) to help pursue collaboration and cooperation in the field of defense research and development.

Indian utility vehicle maker Mahindra Group has successfully test flown its C-NM5 five-seat piston-powered aircraft, marking a milestone in the nation’s first public-private aircraft development venture. The all-metal airplane is powered by a Lycoming IO-540 engine and features a non retractable landing gear and a spacious cabin with large access doors. According to Mahindra officials, the aircraft will cost around $400,000.

In a surprise move, cash-strapped Air India has decided to ask the Indian federal government to approve its purchase of 27 Boeing 787s (Aviation Daily, Sept. 16). The national carrier is counting on the long-haul aircraft easing its current financial crisis and lifting its eroding market share on international routes.