Boeing Co. is in talks for the manufacture of as many as 10 fuselages a month for its new 787 Dreamliner, more than the seven originally agreed with Alenia Aeronautica, a unit of Finmeccanica SpA, the Italian industrial giant. Alenia is spending $720.2 million to build 14 percent of the Dreamliner's structure, including two body sections and the horizontal tail, Alenia CEO Giuseppe Giordo said Monday in an interview. "We are now planning seven a month and also discussing the possibility of 10 a month," Giordo said. "If things continue as they are with 787 orders, we will have to start talking to Boeing about more." Boeing spokeswoman Yvonne Leach declined to comment on 787 production plans, except to say that a decision on an increase would

be made this summer. The Dreamliner now has firm orders for 464 planes from 37 airlines, making it Boeing's most successful new airliner program. Wing components and floor beams for the plane are being produced in Tulsa by Wichita-based Spirit AeroSystems Inc. Finmeccanica CEO Pier Francesco Guarguaglini said two years ago that Boeing had asked the company to potentially double its production rate to 14 fuselages a month.

If the nation's airports get their way, the price of flying will increase further this fall as they push for higher boarding fees used to fund airport improvements, ranging from new runways to expanded terminals. Airports and the Federal Aviation Administration are asking Congress to increase the "Passenger Facility Charge," a fee that's automatically added to the price of each air passenger ticket. It's the first time the agency has asked for an increase since 2001, when the original 1992 fee of $3 per ticket increased to a maximum of $4.50. The FAA now is asking Congress to increase the fee by another $1.50 to a maximum of $6. But the country's major airports would like the increase doubled - for a $7.50 fee - to keep up with construction cost inflation. The inflation that worries passengers and the airline industry is the one that affects the cost of air travel, especially as other factors, such as soaring fuel costs, keep pushing up the cost of flying.

Boeing has drawn up prototypes of a new 737. The Seattle-based group has drawn up two early prototypes including a wider, twin-aisle jet and a shorter, single- aisle version, dubbed Fat Boy and Little Boy. The new jet is likely to enter service in the middle of the next decade and will have a carbon fiber fuselage to make it more fuel efficient and environmentally friendly. Stay tuned.

from any city in Europe to any city in the USA. The new deal could mean many more scheduled flights across the Atlantic and greater competition is likely to drive down prices. The increase in traffic and services could bring new job opportunities in the air travel industry. Once ratified, the agreement would open up the transatlantic market to all airlines. Among the benefits, this agreement opens up the possibility of an additional 26 million more passengers over the next five years. Removing bilateral agreements and the associated restrictions on traffic rights could mean a drastic reduction in the cost of tickets as more operators gain access to transatlantic routes. "I am delighted with the progress that has been made by the European and American negotiating teams," said Jacques Barrot, vice president of the European Commission in charge of Transport policy.

US lawmakers have been urged to adjust aviation taxes and fees so that airlines passengers will no longer have to be burdened by them. In a letter submitted to the Senate Aviation Subcommittee for their March 8, 2007 hearing on Federal Aviation Administration reauthorization, Air Travelers Association (ATA) president David Stempler said, "Aviation taxes and fees must be adjusted so that airline passengers are no longer forced to subsidize the operation of corporate jets. Corporate executives, entertainers, real estate moguls, and other fat cats have been getting a free ride from airlines passengers for over 25 years and this must stop!" Stempler continued, "According to the FAA's most recent analysis, airlines and their passengers use about 70% of air traffic control costs, yet contribute almost 95 percent of the revenue into the Airport and Airways Trust Fund that funds the system. Who benefits from this inequity . .. the users of Learjets, Gulfstream jets, Falcon jets, and the like. If they can afford these planes, believe me, they can afford the fair and equitable taxes that go with using them."

Five airline labor groups criticized a tentative "open skies" agreement reached last week between the Bush administration and the European Union. The labor unions, which include the Air Line Pilots Association, Association of Flight Attendants, Transport Workers Union, International Association of Machinists and Aerospace Workers, and the International Federation of Professional and Technical Engineers, said the proposed agreement would result in job losses and financial instability for U.S. carriers. U.S. and EU officials said the tentative agreement, by spurring investment in U.S. and European carriers, would create thousands jobs in the U.S. and Europe. "We strongly object to the tentative air transport agreement," the five unions said in a written statement. "This agreement is not in the best interests of U.S. aviation workers or our economy. "While the proposed agreement has serious ramifications that must yet be thoroughly understood, the Bush administration has apparently committed to allowing greater foreign ownership of U.S. airlines. And, we are particularly concerned about a franchising provision that would allow foreign investors to control the operational decisions of our airlines. The unions said their opposition has been deepened by the administration committing to further talks with the EU, beginning as early as later this year, to discuss the possibility of changing U.S. ownership and control laws and allowing foreign airlines to fly domestically.

Boeing chief executive Jim McNerney said development of the manufacturers new 787 model was on track and the company did not expect the US government to cancel a USD$15 billion helicopter deal it had won. "We're hitting all our benchmarks, we're fighting all the fires," McNerney told reporters on Thursday when asked about progress on the 787, adding that he expected roll-out of the plane in July. Boeing has sent engineers to supplier firms to help them stay on schedule as the planemaker works toward a May 2008 first