A move into the Australian domestic market by Singaporean budget carrier Tiger Airways will challenge the profitability of Qantas budget unit Jetstar, just as the Australian airline prepares to be taken over by private-equity buyers. Tiger's plan also means the airline--still a small business, but an ambitious one with the backing of big-name aviation investors--will run a narrow-body network stretching from southern China, to the Philippines, southeast Asia and across the Australian continent, which is itself about as big as the continental U.S.

It's crunch time for Australia's disastrous Kaman Super Seasprite program, with the government poised to announce whether it will junk the project--11 years after it was launched, six years after the naval helicopters were supposed to enter service and four years before they are now expected to be operational. Eurocopter and Sikorsky stand to gain from project cancellation if the Royal Australian Navy turns to their NFH90 or SH-60 Seahawk helicopters, though another alternative would be second-hand Seahawks.

China is steadily removing barriers that have prevented the country's potentially vast business aviation market from being more than a distant dream. It's getting easier to operate business aircraft in China, and the pace of progress is accelerating, manufacturers say. The market volcano hasn't erupted yet, and no one knows when it will, but the manufacturers can feel the rumblings.