By Karen Jacobs

(Reuters) – Flying to Europe is about to get more expensive.

The continent’s highest court upheld a European Union law on Wednesday that will charge airlines for carbon emissions on flights to and from Europe, beginning January 1.

Carriers are certain to want to pass that cost on to consumers and some industry watchers forecast airfares between the United States and Europe could rise $50 to $90.

By Andrea Shalal-Esa and Karen Jacobs

(Reuters) – Losing a big Japanese order to Lockheed Martin Corp (LMT.N: Quote, Profile, Research, Stock Buzz) was clearly a disappointment for Boeing Co (BA.N: Quote, Profile, Research, Stock Buzz), but a $29.4 billion order from Saudi Arabia for F-15 fighter jets and several other competitions will keep the company in the fighter business for now.

The U.S. government and Saudi Arabia are finalizing a letter of agreement on the sale of 84 Boeing F-15s, and may announce that deal soon, according to one source familiar with the discussions, who was not authorized to speak publicly.

NEW YORK (Reuters) – Southwest Airlines Co (LUV.N: Quote, Profile, Research, Stock Buzz) is focused on eliminating waste and inefficiencies in its operation to bring down costs and re-widen the cost advantage it has against larger rivals, Chief Executive Gary Kelly said on Thursday.

Upgrading the company’s airplane fleet is a key part of the strategy to lower costs, he added in an interview with Reuters in New York.

NEW YORK, Dec 12 (Reuters) – Rockwell Collins Inc (COL.N: Quote, Profile, Research, Stock Buzz) is not for sale right now, but the company would be fiscally responsible if a potential buyer were willing to pay a high price for the supplier of flight controls and other electronics for airplanes, its chief executive said on Monday.

“The last thing on my list of strategic alternatives to grow the company and provide value is to sell the company. And as a result, the company is not for sale right now,” Clay Jones said at the 2011 Reuters Manufacturing and Transportation Summit in New York.

NEW YORK, Nov 30 (Reuters) – Europe’s Airbus expects to
maintain A380 superjumbo deliveries at 25 to 27 aircraft in 2012,
unchanged from this year, as production edges up to three planes a
month, sales chief John Leahy said.

Airbus delivered 19 of the world’s largest airliner, which has
a list price of $375 million per plane, in the first 10 months of
2011.

NEW YORK (Reuters) – Airbus expects to maintain A380 superjumbo deliveries at 25-27 aircraft in 2012, unchanged from this year, as production edges up to three planes a month, sales chief John Leahy said.

Airbus delivered 19 of the world’s largest airliner, which has a list price of $375 million per plane, in the first 10 months of 2011.

NEW YORK, Nov 30 (Reuters) – Airbus expects to
maintain A380 superjumbo deliveries at 25-27 aircraft in 2012,
unchanged from this year, as production edges up to three planes
a month, sales chief John Leahy said.

Airbus delivered 19 of the world’s largest airliner, which
has a list price of $375 million per plane, in the first 10
months of 2011.

NEW YORK, Nov 30 (Reuters) – U.S. weapons makers told
investors this week that they are doing all they can to prepare
for leaner U.S. defense budgets, including redoubling their
efforts to cut costs, drum up export sales and sell more goods
to commercial clients.

Industry executives and Pentagon officials say they are
still sorting out the potential impact of an additional $600
billion in defense cuts over the next 10 years, on top of some
$489 billion in cuts already being absorbed.

Nov 23 (Reuters) – The narrowing price gap between the two
main benchmarks for crude oil could bring relief for U.S.
airlines burned this year by their divergence.

Carriers like Southwest Airlines , United
Continental Holdings and Alaska Air had
markdowns or special expenses in the third quarter tied to
hedges in West Texas Intermediate crude oil, which fell in
price while jet fuel prices, which have been more closely
tracked by North Sea Brent crude this year, remained high.

By Bijoy Anandoth Koyitty and Karen Jacobs

(Reuters) – U.S. defense contractor General Dynamics Corp (GD.N: Quote, Profile, Research, Stock Buzz) said Monday it would buy smaller rival Force Protection Inc (FRPT.O: Quote, Profile, Research, Stock Buzz) for $360 million to beef up its armored vehicle business, as the industry faces big cuts in spending.

Shares of Force Protection, which also reported a quarterly profit that beat estimates, shot up 30 percent, or $1.28, to $5.49.