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British Airways and Iberia boss Willie Walsh warned of further airline bankruptcies in the coming year and said he envied the economic model of major Gulf carriers that have managed to redraw the aviation map efficiently around the Middle East.

The chief executive of International Airlines Group (ICAG.L) joined the head of Dubai’s Emirates and other industry leaders in predicting further retrenchment, as weaker airlines struggle to generate the cash needed to ride out high oil prices.

“‘I expect to see significant moves on the subject of consolidation as we move through the year and into next year,'” Walsh told the AFCA aircraft finance conference in Barcelona.

source: Reuters

Spirit Airlines refuses to refund tickets for a man who learned that he has terminal cancer and can’t fly on a plane after he purchased the trip.

Jerry Meekins, 76, of St. Petersburg, Florida asked the airline for his money back after doctors told him that he only had months to live from esophageal cancer he is battling.

But Spirit officials say that they won’t return the funds because the company has a non-refundable policy and it wouldn’t be right to adjust the rules for one person.

source: dailymail.co.uk

German airline Deutsche Lufthansa said a project to bring together its Germanwings unit and point-to-point services in Europe was one option being considered under plans to cope better with low-cost competition.

“‘It is just a business case at the moment,'” a spokesman for Germany’s largest airline said Lufthansa was planning a new low-cost airline called Direct 4 You.

While Lufthansa is strong in intercontinental and hub traffic, it has suffered in Europe from the rise of low-cost carriers such as easyJet and Ryanair.

source: Reuters

New Spanish budget airline Iberia Express is considering entering the German market, and could be flying from Berlin or Frankfurt to Spanish coastal resorts before the end of this year.

Pilots from parent airline Iberia have been striking since December in protest at what they see as a piecemeal outsourcing of their jobs.

The budget airline is projected to save Iberia company €100 million by 2015, much of it recouped from staff costs that will see Iberia Express pilots pocket on average €4,000 a month less than their colleagues at the main airline.

source: thelocal.de

Europe’s competition watchdog has started its latest probe into whether Ryanair benefits from illegal state subsidies to airports.

The European Commission is to investigate the carrier’s deals with Nimes airport in France, which allegedly gave Ryanair “‘undue economic advantage’” over its competitors at the expense of French taxpayers.

The regulator will probe rebates and marketing agreements between Ryanair and the airport that may have given the airline an “‘undue economic advantage,’” as well as financial arrangements between French authorities and Nimes airport.

EU regulators opened a similar probe into Ryanair’s agreements with Carcassonne airport earlier this month, adding to several reviews of discounts and subsidies offered by small, regional airports across Europe to attract budget airlines.

source: travelweekly.co.uk

The airline that pioneered charges for checked-in baggage has abandoned its £9 flat fee for paying with debit cards.

Flybe, Eeurope’s largest regional carrier, says it has removed the charge as part of “‘A fair, open and transparent approach to sales and service policies'”.

Until its removal today, the fee earned Flybe an average of £4.50 for each passenger flown. But the airline’s UK managing director, Andrew Strong said “‘I’m not looking to put up fares to offset the removal. People will choose us because we offer a better product.'”

source: belfasttelegraph.co.uk

Airberlin is planning to install Etihad‘s popular fully flat business class beds in all its long-distance planes, which means a more comfortable sleep, direct aisle access and better privacy.

The airline, which is partner to both Qantas and Etihad, hopes that superior seats will woo business travellers onto its Germany-bound flights.

source: ausbt.com.au

Southwest Airlines and Amadeus IT Group announced last week that they have entered into a joint contract for Amadeus’ Altea reservations solution that would support the carrier’s international service.  Now that the contract is finalised, the two companies will work closely together to implement Amadeus’ technology to allow Southwest to operate international flights in 2014.

AirTran Airways, a wholly-owned subsidiary of Southwest Airlines, currently serves international destinations.  As the AirTran international flights transition to Southwest, Amadeus will support Southwest’s international flying.

source: breakingtravelnews.com

Pakistan blocked the head of an airline whose jet crashed near the capital from leaving the country as it began an investigation Saturday into the country’s second major air disaster in less then two years.

The Bhoja Air passenger jet crashed Friday as it tried to land in a thunderstorm at Islamabad’s main airport, killing all 127 people on board. The small domestic airline, which resumed operations in March after an 11-year pause, has said the weather was the cause.

The plane was on a flight from the southern city of Karachi to Islamabad when it crashed at dusk

source: Associated Press

Ryanair passengers face forking out even more money for their flight this summer, even though they have already booked and paid for it.

The budget airline is threatening to impose a surcharge on flights back from Spanish airports in an escalating row over airport fees.

This week, the airline sent an email to customers warning them of the backdated cost.

Ryanair, is now the leading airline between the UK and Spain so the charges could aeffect millions of pople who have already booked their summer flights.

source: Dailymail.co.uk