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The Air Force announced that the European company EADS and its junior partner, the U.S. weapons-maker Northrop-Grumman, will build the next generation of air-refueling tanker aircraft, dealing a major blow to Boeing Co. It's the first such significant military contract awarded to a largely foreign bidder.

Optimism is growing about the U.S. jobs market. Hiring is up, with most of the new jobs coming from small and medium-sized businesses. But some small-business owners say the changes they've made in recent years are making the need for manpower less urgent.

European plane maker Airbus sweetens a bid to win a lucrative Pentagon contract over arch rival Boeing. Airbus says if it wins an Air Force contract for refueling tankers, it will assemble those tankers — plus the freight version of one of its best-selling aircraft — in the U.S.

Boeing lost a lucrative aircraft contract Friday with the U.S. military. The $40 billion deal was instead awarded to a consortium of businesses that includes Boeing's chief rival, European-owned Airbus. Europeans reacted with glee over the prospect of new jobs and an economic boost.

A collision with a large bird forced a United Airlines plane to return to Dulles International Airport in northern Virginia.

Two San Diego County supervisors who were in Washington, D.C., when the Sept. 11, 2001, terrorist attacks took place said they feared for their daughters' safety for several hours.

This week, a Continental flight from Houston to Chicago used a biofuel blend made in part from algae, and Alaska Airlines will fly passengers using a fuel made in part from cooking oil. The fledgling environmental effort has many hurdles, as biofuel costs nearly six times as much as regular jet fuel.

Federal agents are investigating the background of a California man with a Yemeni passport who pounded on the cockpit door of an American Airlines flight as it approached San Francisco before a flight attendant tackled him, authorities said Monday.

DAILY REPORT: Pilgramage to Ground Zero, Green Navy, Disabled Vets, Naval Aviation's 100th, Pendleton Growth

The first of NASA's retired space shuttles will make its way to its new retirement home on April 17. The well-traveled orbiter will be flown low over the nation's capital before being placed on permanent display at the Smithsonian.