Air New Zealand subsidiary Air Nelson said it will purchase two additional Q300s valued at $32 million, bringing its total on firm order to five and increasing its fleet of the 50-seat turboprops to 23 by May 2009.

Horizon Air, which grounded its fleet of Q400s following the collapse of landing gear on two separate SAS flights (ATWOnline, Sept. 13), inspected 16 of its 33 affected aircraft by Friday and plans to begin placing them back in service today. The regional carrier canceled 89 flights Friday and expected additional cancellations over the weekend because of the grounding. By Tuesday it intends to introduce a "modified schedule" as aircraft are returned to service.

Babcock & Brown filed last week with the US Securities and Exchange Commission to spin off part of its commercial aircraft leasing business in an IPO that could raise more than $440 million. The newly created lessor will be known as Babcock & Brown Air. Shares are being offered at $22-$24 each and will be listed on the New York Stock Exchange under the symbol FLY, B&B said in a statement.

CSA Czech Airlines firmed up options on eight A319s, bringing its total firm orders for A320 family aircraft to 20. CSA said it plans to use the A320s to modernize its European fleet.

Honeywell opened the Honeywell Aerospace Mexicali Research & Technology Center containing advanced aerospace system integration laboratories that will be used to develop and test next-generation technologies. The 100,000-sq.-ft. facility, which cost $35 million, employs more than 200 local engineers and technicians and initially will research and develop technologies for next-generation narrowbody aircraft such as the 737 and A320.