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American Airlines and British Airways  won final approval on Tuesday to expand a trans-Atlantic alliance on flights between the United States and Europe.

The two carriers were cleared to jointly set prices, sell tickets and schedule international flights through their Oneworld alliance, exempt from antitrust rules, the United States Transportation Department said in a statement.

“‘The transaction will not substantially reduce or eliminate competition,’” Susan Kurland, assistant secretary for aviation and international affairs, wrote in an order. The deal “‘will not be adverse to the public interest.’”

The Transportation Department had given tentative approval to the alliance on Feb. 13, and the European Union granted approval on July 13.

source: nytimes.com

Airlines that lose people’s bags shouldn’t be charging them for the service, says an angry passenger suing American Airlines. Danielle Covarrubias has launched a $5 million class action suit against the airline, complaining that after it lost her bag containing $800 in possessions managers refused to refund her $25 baggage fee.

“‘American Airlines is just another example of how companies have forgotten about customer service,'” said Covarrubias. “‘When American charges a fee for a baggage service it should deliver your bag, unharmed, or give you a refund.'” A spokesman for the airline said the company is reviewing the lawsuit, the first of its kind since American introduced baggage fees.

source: newser.com

Emirates announced an order for 30 Boeing Co. 777-300ER aircraft valued at $9.1 billion, as the largest Arab airline expands its fleet of long-range jets.

The airline disclosed the order today during the Farnborough Air Show in the U.K. Of the 30 planes, 18 had already been ordered and were listed in Boeing’s backlog as coming from an undisclosed customer.

The order “‘affirms Emirates’ strategy to become a world leading carrier and to further establish Dubai as a central gateway to worldwide air travel,’” Emirates Chairman Ahmed bin Saeed al-Maktoum said in an e-mailed statement. “‘Our latest deal signals Emirates’ confidence in the growth of the thriving aviation sector.’”

source: Business Week

British Airways and Iberia this week won the European Union’s  regulatory approval to merge and to team up with American Airlines to  share more of their lucrative trans-Atlantic routes.

The companies  say the two deals will help them cut costs and survive a tough business  climate as they struggle with falling passenger numbers and industrial  unrest.

British Airways’ merger with Iberia will create Europe’s  third-largest airline with a market value of around $7.5 billion. They  will keep their existing brand identities and claim the deal will create  savings of euro400 million ($530 million) a year by the fifth year.

source: Associated Press

Italian flag carrier Alitalia Airlines in the next ten days will announce plans to join the antitrust-immune joint venture that includes Delta Air Lines and Air France-KLM, enabling the carrier to jointly set fare, plan routes and share revenues on the transatlantic with its SkyTeam partners.

These carriers already have been courting corporate customers and transitioning international contracts to the joint venture.

source: businesstravelnews.com

Airline bmi British Midland is to merge its frequent flyer scheme, Diamond Club, with the Miles & More programme of new owner, Lufthansa.

It follows the integration of Miles & More with other Lufthansa subsidiaries including Brussels Airlines, Swiss and Austrian Airlines.

Lufthansa took control of bmi in 2009 after Sir Michael Bishop, the former chairman, exercised an option to sell his controlling stake at a pre-agreed price.

The German airline considered a sale of bmi but it did not attract a sufficiently high price from any interested buyers so began a restructuring scheme.

source: Telegraph.co.uk

Lufthansa is to join British Airways and Air France in revamping its first class cabins ahead of the World Cup in May.

The new first class package will debut in May, ahead of the airline’s inaugural A380 flight to Johannesburg, carrying the German World Cup team.

Lufthansa has confirmed that the new first and business class menus will be designed by Michelin-starred chef Holger Stromberg, the chef to Germany’s national football team.

Despite several airlines opting to reduce their first-class offerings in the wake of the financial crisis, some appear to have opted to innovate to survive.

source: Independent

Emirates says Baghdad will be among the new destinations it will begin serving this year. Emirates will begin flying to Baghdad in July, making it “‘the latest carrier to add routes to Iraq as the nation struggles to recover from war.'”

Other Middle East carriers (FlyDubai and Qatar Airways) have also recently announced Baghdad service, writing that “‘the flights also are a possible sign of increased Arab investment in Iraq’s oil and commercial sectors.'”

source: USA Today

Lufthansa is set to become one of the world’s first airlines to mix biofuel with traditional kerosene on commercial flights as carriers seek ways to cut soaring fuel costs.

The German flag carrier will start running its engines on some flights on a mix of biofuel and kerosene within two years. Aircraft account for an estimated 2-4 percent of global carbon dioxide (CO2) emissions, which scientists say could cause global temperatures to rise, triggering widespread disease, famine, flooding and drought.

Experts say global aviation emissions could reach 2.4 billion tonnes in 2050, which would be 15-20 percent of all CO2 permitted under a global agreement and a nearly four-fold increase on current levels.

source: Economic Times

United Airlines and Continental Airlines will merge in an all-stock deal worth over $3 billion that will create the world’s largest carrier with annual revenues of nearly $29 billion.

The two American carriers have entered into a definitive merger agreement, which is expected to close in the fourth quarter of this year. The merged entity will be known under the brand name of United Airlines and will be based in Chicago, the headquarters of United.

Continental is based in Boston, which will cease to exist post-merger. “‘The all-stock merger brings together two of the world’s premier airlines, creating a combined company well positioned to succeed in an increasingly competitive global and domestic aviation industry,'” both companies said in a statement.

source: Rediff business