Taxes on carbon emissions were also a notable feature of the latest round of earnings reports in Australia. The Australian government introduced a carbon tax in July 2012, so this was the first reporting period to include the cost to airlines. Virgin Australia says the per-passenger carbon tax—which applies only to domestic flights—totaled A$24.4 million in the six months through Dec. 31. To put this in perspective, that amount is larger than its net profit for the period.

AgustaWestland is using an unconventional tiltrotor fan-in-wing demonstrator, flown in secret in Italy since 2011, as a self-funded technology incubator for advanced rotorcraft concepts. Measuring several meters in span, the “Project Zero” sub-scale demonstrator has two electrically driven, tilting rotors embedded in the wing. Surprising attendees at the Heli-Expo 2013 show in Las Vegas this month by revealing the program, newly installed CEO Daniele Romiti says the flying wing represents how the manufacturer is “thinking today of how we could fly tomorrow.”

Malaysia Airlines (MAS) and Garuda Indonesia, two of Asia's leading full-service carriers, are about to find themselves under competitive pressure from Indonesian low-cost carrier Lion Air, which is moving into the premium segment.

U.S. low-cost carrier Allegiant Air—building on a niche strategy that consistently produces double-digit operating margins—is eyeing a long-term growth plan that includes more Airbus A319 and A320 aircraft, the possible addition of A321s and more Boeing 757s, The Las Vegas-based carrier also expects to launch 30-40 new routes within the next 18 months and begin international service in 2014. Its leadership even mentions transatlantic service as a possibility for the longer term.

Boeing's choice will upset airlines looking for increased competition

The Civil Air Navigation Services Organization (Canso) is coming of age as one of the senior aviation alphabet groups, as forays into new ventures help raise its profile and provide the resources needed to expand its role.

Bombardier stretches the CS300, entering Airbus/Boeing territory

The emergence and strong sales of Frank Robinson's R66 Turbine is causing helicopter manufacturers to think again about the light single-turbine market. For years, Robinson Helicopter Co.'s piston R22 and R44 were considered to be in a league of their own, but the development and certification of the R66—of which nearly 200 were delivered in 2012—has raised eyebrows, as it begins to impinge on markets that were previously strongholds of models produced by Bell Helicopters, MD Helicopters, Enstrom Helicopter Corp. and to some extent Eurocopter.