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Alitalia Joins KLM/Northwest Italy's Alitalia airline will join the partnership headed by KLM Royal Dutch Airlines and Northwest Airlines, the three announced last week. The venture will allow the carriers to coordinate transatlantic routes while increasing efficiency. The deal includes codesharing, frequent flier programs, airport lounge access, route planning and scheduling. They will also seek cooperative agreements on cargo operations. The deal is subject to regulatory scrutiny from the US Department of Transportation. Discovery Launch Postponed Space Shuttle managers postponed the launch of Discovery for at least one week to allow technicians to repair foam insulation on the external fuel tank, NASA announced on Friday. The tank was damaged by a severe hail storm the previous weekend that caused several small indentations in the tank's foam insulation. Managers are concerned that ice could form in these areas when the tank is filled with supercold propellants for launch. Areas of ice could cause debris damage to the Shuttle after liftoff. Scheduled for May 20, Discovery's launch on Shuttle mission STS-96 will be delayed for a one week minimum to no earlier than May 27. Managers will release a new schedule midweek. Discovery will be moved from the launch pad back to the vehicle assembly building at NASA's Kennedy Space Center in Florida for repair work. Olympic Aviation Launches 717-200 in Europe Olympic Aviation will take two Boeing 717-200 on lease from Bavaria International Aircraft Leasing Co, marking the first European airline to put the new 100-seater into service. The two aircraft will be delivered later this year. Olympic said it made the decision after carefully studying competing aircraft. The airline plans to use the 717-200 for routes connecting Thessaloniki, Greece and Athens to the Balkans and Europe. GE Engines Wins PeaceAir Contract GE Engine Services was awarded a $35 million contract to maintain, overhaul and repair the JT9-7 engines of Peace Air. PeaceAir operates a fleet of Boeing 747s, and announced the purchase of a 747-400 combi last year at Farnborough. The Sri Lankan carrier provides cargo and passenger service as well as direct flights to places of religious worship that most carrier find uneconomical to serve. The 10-year contract for GE covers the engines on PeaceAir's 747-200 fleet, which stands at five. Overhaul, maintenance and repair work will be done at GE Aircraft Engine's center in Nantgarw, Wales. GE Engine Services has been overhauling and repairing the CF6-80C2 engines in PeaceAir's fleet since last year, said Dave Settergren, director of GE Engine Services sales in Singapore.