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Air France-KLM has offered a share swap and a capital increase of €750 million (US$1 billion) as part of its bid for Alitalia, the chairman of the Franco-Dutch airline was quoted as saying.

The group would renew Alitalia’s aging fleet and cut up to 1,700 jobs, Jean-Cyril Spinetta was quoted as saying in Italian newspapers Sunday.

Alitalia is scheduled to hold a board of directors meeting Tuesday to announce a decision on which sole bidder to open negotiations with. The Italian government, which has a 49.9 percent stake in the struggling airline, met earlier this week but failed to decide on a preferred bidder.

source: International Herald Tribune

Air India is set to join the Star Alliance ” the global alliance of 19 airlines including Lufthansa, Singapore Airlines, Air Canada and Air China ” allow it to offer easy connectivity at competitive fares to passengers. The board of Star Alliance, at its meeting in China on Thursday, voted the inclusion of Air India as member along with EgyptAir and Turkish Airlines.

source: Hindustan Times

JetBlue, the struggling discount carrier, sold a 19 percent stake in its business to Lufthansa of Germany for $300 million Thursday, the first major investment by a foreign airline in an American rival since British Airways took a stake in American Airlines in the early 1990s.

While Lufthansa’s investment is strictly financial and does not include any strategic partnership for now, industry watchers speculated that the deal could lead to further cooperation and give Lufthansa an important foothold in the United States.

source: The New York Times

Virgin America is launching flight service between Seattle and San Francisco, and Seattle and Los Angeles.

The new airline, which launched in August, said it would open service between Seattle-Tacoma International Airport and San Francisco in March 2008, with three daily round-trip flights. Service between Sea-Tac and Los Angeles will follow in April, also with three daily round-trip flights.

Virgin America said it would add a fourth Seattle-Los Angeles daily round-trip flight beginning in May.

source: Business Journal

Airlines should be forced by a change in the law to provide two inches more leg room on board passenger jets, a cross-party committee of peers said in a report on air travel.

The Lords committee on science and technology accused the Civil Aviation Authority (CAA) of ignoring its own research which recommended the regulatory minimum distance between seats should be increased to 28.2ins (71.6cm) or ideally to 29.4ins from a current minimum of 26ins.

source: The Independent

A Vietnam Airlines flight bound for Hanoi was delayed for four hours at Danang Airport after several scorpions were found on the plane, an official said today.

The A321 aircraft, with 165 passengers on board, was about to taxi onto the runway Tuesday evening when a crew member spotted two scorpions near a passenger’s seat.

source: The Age

The chaos surrounding the auction of an Italian government stake in Alitalia grew on Thursday, as Singapore Airlines denied it was interested in buying any part of the carrier less than an hour after Alitalia said it had received an offer.

Alitalia said a group consisting of Singapore Airlines, Evergreen Special Situation Fund and THL Transportation Equities Fund wanted to buy the 49.9% stake that’s for sale. The airline said it passed the details onto the Italian government.

source: Market Watch

The chaos surrounding the auction of an Italian government stake in Alitalia grew on Thursday, as Singapore Airlines denied it was interested in buying any part of the carrier less than an hour after Alitalia said it had received an offer.

Alitalia said a group consisting of Singapore Airlines, Evergreen Special Situation Fund and THL Transportation Equities Fund wanted to buy the 49.9% stake that’s for sale. The airline said it passed the details onto the Italian government.

source: Market Watch

The chaos surrounding the auction of an Italian government stake in Alitalia grew on Thursday, as Singapore Airlines denied it was interested in buying any part of the carrier less than an hour after Alitalia said it had received an offer.

Alitalia said a group consisting of Singapore Airlines, Evergreen Special Situation Fund and THL Transportation Equities Fund wanted to buy the 49.9% stake that’s for sale. The airline said it passed the details onto the Italian government.

source: Market Watch

United Airlines became the first U.S. carrier last month to offer flat-bed seats in international business cabins. Delta is planning to begin introducing flat-bed seats in business class starting next year. And American is continuing to replace some of its business-class seats with angled lie-flat seats.

The perks of airborne beds go beyond peaceful sleep. Singapore Airlines’ new Airbus A380 has suites with double beds, sliding doors, wardrobes and window blinds. Virgin Atlantic offers its Upper Class, or business class, passengers ground transportation, in-flight massages, and a clubhouse at the airport where they can shower, dine and check email.

A good night’s sleep on an overnight flight can make the difference in how well business executives function the next day, said Buckman. But he said vacationers are taking advantage of the beds as well. While there is no hanky-panky allowed, even with double-bed suites, “‘that honeymoon to Hong Kong is definitely more enjoyable and less stressful ” for the happy couple if they can get there and back a little easier and more comfortably,'” Buckman said.

source: USA today