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The U.S. Justice Department has given its approval to the merger of American Airlines and US Airways, the last major hurdle for a deal that will create the largest airline in the world.

The two companies communicated that customers with existing tickets are unlikely to see any noticeable changes, but longer term, the effects could be significant. Owners of frequent-flyer miles for both airlines will remain valid until both programs are consolidated on an equal value basis.

The two carriers are the last to link up in the latest wave of U.S. consolidation, which includes:

• Delta and Northwest
• United and Continental
• Southwest and AirTran

US Airways launched an aggressive takeover bid for its larger rival American Airlines on Friday.

The bold move would lift troubled American out of bankruptcy and create a contender for the title of the largest airline in the U.S.

But the deal – which is resisted by American’s management – could also complicate the company’s already messy bankruptcy reorganisation.

US Airways went behind the larger company’s back and secured the support of American’s three labour unions in its bid to force a merger.

source: Dailymail.co.uk

An American Airlines jet about to take off was halted after a flight attendant began “‘ranting'” about 9/11 and claiming that the plane was about to crash.

Chicago-bound Flight 2332 had departed the gate at Dallas/Fort Worth International Airport this morning and was preparing for takeoff when, according to a law enforcement officer, a female flight attendant began talking on the plane’s public address system about mechanical problems. Her speech also included “‘ranting'” about 9/11.

source: cbsnews.com

American Airlines is offering another option to the passenger who is tired of jamming his knees into a fellow flier’s back. The carrier’s new “‘Main Cabin Extra'” seats in coach will offer four to six inches of additional legroom.

The airline will start installing the new seating configuration across its fleet this year, the airline said.

The roomier seating will be at the front of the main coach cabins to make boarding and deplaning easier for passengers who opt for the extra legroom. Prices for customers who purchase the roomier seating will range from $8 to $108 per segment, depending on length.

source: CNN

According to the U.S. Deprartment of Transportation’s’ Air Tavel Consumer Report’, more than half of the pets that died on airplanes in 2011 flew Delta.

Delta claims the statistic is flawed since more pets fly Delta than any other airline. Delta has already banned certain breeds of dogs that have snub noses because they have a propensity for respiratory problems.

The airline who had the second-most pets die on the plane was American Airlines.

source: 9news.com

Japan Airlines Co. and British Airways applied to form a venture on Japan-Europe routes that would let them share revenue, coordinate schedules and potentially add new services.

British Airways and JAL are both members of the Oneworld global airline alliance that also includes AMR Corp. (AMR)’s American Airlines and Cathay Pacific Airways Ltd. The group fought off overtures from competing alliance SkyTeam, led by Delta Air Lines Inc. and Air France-KLM Group, to lure away JAL, while the Japanese carrier was dealing with bankruptcy in 2010.

source: Bloomberg

The airline, which filed for bankruptcy in November, said it wanted to get rid of 13,000 workers, or 16 percent of its work force. It plans to terminate its pension plans. It wants to cut back health benefits for current employees and retirees. Over all, it said, it seeks to cut employee costs by 20 percent.

The proposals are just the opening move in what are expected to be long and contentious negotiations. A bankruptcy judge must approve any new contract if the unions reject American’s proposals. But judging from previous airline bankruptcies, American might get much of what it is seeking.

Union representatives said they were stunned after meeting throughout the day with airline executives at the carrier’s headquarters in Fort Worth.

source: nytimes.com

U.S. airlines lost their fight last week to stay out of the European Union’s carbon trading market at the E.U.’s highest court.

The Court of Justice of the European Union in Luxembourg ruled in a lawsuit brought by the ‘Air Transport Association of America’, American Airlines and United Continental that aviation can be included in the E.U.’s emissions trading system (ETS). The decision cannot be appealed.

“‘The directive including aviation activities in the E.U.’s emissions trading scheme is valid,” ‘the court said in a statement.’ “Application of the emissions trading scheme to aviation infringes neither the principles of customary international law at issue nor the open-skies agreement.'”

source: eenews.net

For US Airways, the merger-hungry fifth-largest U.S. airline, a bankrupt American Airlines may present an irresistible takeover target, but many in the aviation world think the headaches and hassles of consolidation are not worth the payoff of such a tie-up.

American Airlines, a unit of AMR Corp, filed for Chapter 11 bankruptcy protection on Tuesday in a bid to shed some of its uncompetitive costs and restructure its debt.

Bankruptcy leaves the company vulnerable to potential takeover attempts from would-be suitors like US Airways, whose chief executive Doug Parker has long promoted consolidation as a means to slim down an industry plagued by overcapacity. US Airways once tried and failed to buy Delta Air Lines as it restructured in bankruptcy.

source: Reuters

British Airways and Iberia parent IAG  said its transatlantic joint venture with American Airlines would continue to operate as normal after AMR Corp, the carrier’s parent company, filed for bankruptcy protection.

“We have every confidence in the future of American Airlines. We are pleased they are taking this step which shows commitment and determination,” IAG, which has a joint venture with American Airlines on transatlantic routes, said in a statement on Tuesday.

source: Reuters.com