Air China to buy 20 Boeing planes for $1.4 billion

(Reuters) – Air China (601111.SS) (0753.HK) said late on Friday that it would buy 20 Boeing (BA.N) 737-800 airplanes for $1.4 billion.

Deals

The planes, which will be delivered between 2013 to 2015, will boost Air China’s fleet capacity by about 5 percent from December 2009, based on available metric tone kilometers, allowing it to increase the frequency of flights, the carrier said in a statement to the Hong Kong stock exchange.

The airline said it would pay for the planes with cash, bank loans and other financing tools.

Chinese airlines are benefiting from solid air traffic growth in China, which may overtake Japan as the world’s second-largest economy this year, industry analysts said. (Reporting by Sui-Lee Wee, Editing by Jonathan Hopfner)

UK Air Force limits flights after ash found on planes

Britain has suspended non-essential flights of its Typhoon fighter jets to make safety checks after ash from an Icelandic volcano was found on some planes, the Ministry of Defence said on Thursday.

“It’s a routine safety precaution. We have temporarily suspended non-essential flying,” a ministry spokeswoman said.

The planes had flown on a routine sortie on Wednesday.

The National Air Traffic Service, a British air traffic body, said the decision had not affected civilian flights which have only just resumed after a week of delays caused by the eruption of a volcano in Iceland.

“We’ve made no change to our operations,” NATS spokesman Patrick Horwood said.

“The Ministry of Defence flies in different air space,” he said, without giving further details.

The ministry spokeswoman said some of the Royal Air Force planes were being tested for damage to their engines.

“Initially it was was dust-like deposits, so they looked into it and confirmed it was ash, and now we’re waiting for the outcome of the investigation to see if there was any damage caused,” she said.

Test results are due later on Thursday.

European air traffic agency Eurocontrol said earlier air traffic was likely to be back to normal on Thursday, and that it expected 28,000 to 29,000 flights to operate in Europe.

(Reporting by Mohammed Abbas: Editing by Sonya Hepinstall)

Qantas plane circles airport after flap scare

A Qantas plane has encountered problems during a flight between Sydney and Canberra, in the latest in a series of problems with the airline’s planes in the past fortnight.

Flight QF779 was preparing to land at Canberra Airport this afternoon when an indicator in the cockpit showed a defect with one of the plane’s wing flaps.

The pilot aborted the landing and circled the city before landing without incident half an hour behind schedule.

Qantas says engineers have checked the plane and it is now back in the air.

Another six Qantas planes have encountered problems over the past two weeks.

In one incident, a brake problem caused two tyres on a Qantas jet to burst during landing at Sydney Airport last week and a plane was grounded earlier this week because of a cracked windscreen.

The Civil Aviation Safety Authority is conducting a review of the airline’s work practices in response to complaints by the union representing Qantas engineers.