It is always a good strategy to emphasize jobs and economic growth in an election year. That is what the Aerospace Industries Association (AIA) and International Association of Machinists and Aerospace Workers (IAW) are doing as they urge Congress to address a looming budget deadline that could bring $600 billion in defense cuts over the coming decade, plus deep reductions to NASA and the FAA for NextGen air traffic modernization.

Ten years ago, airlines just had to be in. If they were not part of one of the three global alliances, they were second class, or their home market was too small and uninteresting to be considered. Alliances gave them the access to markets they needed and, as importantly, to their future merger partners.

Consolidation has led to the formation of the Big Three airline groups in Europe: Air France-KLM, Lufthansa and the International Airlines Group (IAG). But all three are finding that some takeovers simply do not work, and antitrust authorities and economic realities might block further steps.

Kingfisher Airlines returned an Airbus A330-200 to a lessor in Britain and plans to curtail international services to arrest further losses. The airline, however, did not mention which international sectors it will cut or when—but the Mumbai-London Heathrow route no longer is available for online booking. Its New Delhi-London Heathrow options remain for now. Kingfisher uses A330s for flights from India to places such as London and Hong Kong, and narrowbody A320s for flights to cities in South Asia.

Power-saving integrated circuits that extend battery life in portable electronics, and are being applied to military radios and investigated for avionics, are the overall winner of Aviation Week's 2012 Innovation Challenge, organized to bring new technologies and processes to the attention of aerospace and defense leaders.

Italy's latest annual flight efficiency report shows its reshaped routes helped reduce CO2 emissions and fuel burn in 2011. Enav (Ente Nazionale Assistenza Volo), Italy's air traffic control company led by Massimo Garbini, introduced a number of changes to its route network to enable more direct and higher-altitude flights between most Italian airports. The rationalization allows a more efficient use of the airspace, which becomes particularly congested during the peak tourist season.

Of all the aircraft on view at the India Aviation air show in Hyderabad, the Boeing 787 painted in Air India's livery may have been the most curious—and embarrassing. The 787 has been ready for delivery since December, with a second aircraft in hand for the customer as well, but neither will begin revenue service anytime soon because Air India has yet to train any pilots to fly the new transport. The interior cabin is configured for 238 economy- and 18 business-class seats.

Stories about change are a dime a dozen in commercial air transport; change is a constant in an industry where sometimes the only sure bet is that the price of fuel will continue to rise. But stories about transformation are rare, and it is a transformation that led Aviation Week to award Virgin Australia CEO John Borghetti this year's Commercial Air Transport Laureate.