Airbus Revamps A320 for 15% More Fuel Efficiency

Airbus will overhaul its A320 jet to offer 15% more fuel efficiency. Airbus will spend more than 1 billion euros ($1.3 billion) on the "A320neo" project, which will improve efficiency and reduce emissions, Reuters said.

Qantas Finds Three of Its A380s Have Leaking Engines

Engineers found oil leaks in three engines in Qantas Airlines%u2019 (QUBSF) grounded fleet of Airbus A380s, CEO Alan Joyce said. Engineers found the leaks as they performed safety tests after last week%u2019s incident where an engine on an A380 exploded in mid air during a Singapore-Sydney flight, forcing the plane to perform an emergency landing.

787 Dreamliner Will be Ready Early 2011

The long-awaited Boeing 787 Dreamliner will be ready for service early next year, engine-maker Rolls-Royce Group said. Rolls-Royce, which supplies some of the engines used in the 787 Dreamliner, will meet with Boeing (BA) this week to work out plans to recover from an engine blow-out last month, Bloomberg News said.

Boeing Delays Maiden Flight of 787 Test Jet

Boeing (BA) is delaying the maiden flight of one of its test 787 Dreamliner jets. "Typical build and flight-test challenges" are holding back the sixth test jet%u2019s maiden flight, while workers are "finishing the structure and dealing with anything you have to deal with in getting a flight-test plane ready," Boeing spokeswoman Yvonne Leach told Bloomberg News .

GM to Develop Fuel Efficient Engine With China's SAIC

General Motors plans to develop a small, fuel-efficient engine and advanced transmission with Chinese partner SAIC Motor Corp. The engineering and development work will be carried out by engineers from the two firms in Detroit, and at the Pan Asia Technical Automotive Center, a joint venture between the companies in Shanghai, GM said in a statement.

Toyota to Recall 270,000 Lexus Cars

Toyota will begin recalling 270,000 luxury Lexus cars on Monday to fix a problem that causes the vehicles' engines to stall, the company said Friday in Japan, adding to its already lengthy list of recalls this year.