Air India has signed a financial pact worth $550 million with the Export-Import Bank of US (Exim Bank). The company would use the amount to purchase eight new aircraft. The pact was signed between the chairmen of Exim Bank and Chairman and Managing Director of National Aviation Company of India Limited (NACIL), Raghu Menon.

Air India would buy three 777 aircraft and five 737-780 aircraft and the guarantee for the amount would be provided by the bank to Standard Chartered Bank.

Vijay Mallya-promoted Kingfisher Airlines is all set to cut 300 jobs. It would also return additional aircrafts to reduce the expenses. The move by the company indicates the turmoil in the aviation sector.

It is recalled that Kingfisher Airlines has started its international operations in last fortnight. The move is part of the cost savings and restructuring plans of the company. The carrier has already returned two redundant aircrafts. The company has total of 86 aircrafts at present.

Country’s national carrier Air India has signed a financing arrangement worth $550 million with the US Exim Bank, to finance the purchase of three Boeing 777 and five Boeing 737-800 aircrafts.

Under the deal, the bank would give guarantee for the amount, which would be provided by Standard Chartered Bank to the national carrier to buy aircrafts.

Palma de Majorca, Spain - The Spanish civil aviation authorities have suspended the operating licence of Futura International Airways after it sought bankruptcy protection, the charter carrier said Monday.

The licence could, however, be reactivated if Futura found an investor to finance its savings plan before 2009, the airline quoted the aviation authorities as saying.

Futura chairman Roman Pane earlier said the airline would reduce its staff of nearly 1,200 by half and trim its high-season fleet from 22 to about 12 aircraft.

Madrid - The Spanish transport ministry rejected claims it leaked confidential details of its investigation into the August 20 Spanair air crash which killed 154 people and left 18 injured in Madrid, the Spanish media reported Saturday

"I am also disgusted by this. This is a lack of respect for the survivors," Minister Magdalena Alvarez was quoted as saying, adding she would ensure that those responsible for the leaks would be brought to justice.

Earlier this week, a preliminary report of the commission investigating the crash was leaked, revealing that the Spanair MD-82 jetliner's wing flaps were not properly extended and that the plane's take-off warning system failed to alert the pilots of the problem.

Jakarta - At least seven people were injured when turbulence hit a Boeing 747-400 jetliner belonging to China Airlines on Saturday en route from Taipei to Indonesia's Bali island, an airport official said.

A spokesman for the Bali's Ngurah Rai International Airport named Dimyati said the CAL-687 jet carrying 357 people dropped drastically to about 25,000-feet altitude from 35,000 feet, jolting passengers.