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US Airways Group said Wednesday it has made an $8 billion cash and stock offer for Delta Air Lines in a deal that would create one of the world’s largest airlines.

The offer to buy Delta once the Atlanta-based airline emerges from bankruptcy protection would give Delta’s unsecured creditors $4 billion in cash and 78.5 million shares of US Airways stock.

The offer is a 25% premium over the current trading price of Delta’s pre-petition unsecured claims as of Tuesday, and a 40% premium over the average trading price for Delta unsecured claims over the last 30 days.

source: USA Today

Apple Computer Inc. said Tuesday it its iPod music players will be integrated into the in-flight entertainment systems of six airlines.Passengers on U.S. airlines United Airlines, Continental and Delta, as well as Dubai-based Emirates, Dutch carrier KLM and Air France, will be able to power and charge their iPods during flights and watch the video content on their iPods on their seat back displays.

The service will be available on the airlines beginning in mid-2007.

source: BusinessWeek

Shares of American Airlines parent AMR Corp. surpassed the price they reached the day before the Sept. 11 terrorist attacks as the world’s largest carrier benefits from more than five years of retooling.

“AMR has built itself a huge cash position and done a good job cutting its costs,” Jim Corridore, a New York-based airline analyst with Standard & Poor’s, said today in an interview. “The outlook has really brightened for the airlines that have done the hard work.”

American is simplifying operations after posting more than $8.2 billion in losses from 2001 through last year. The Fort Worth, Texas-based company cut its workforce by 27 percent, reduced its aircraft fleet by 16 percent and built its cash position to $5.5 billion as of Sept. 30.

source: Orlando Sentinel

Eos Airlines has announced that it has secured a second round of institutional investment, which will enable the airline to expand its fleet of 757 aircraft in preparation for new routes in 2007. Eos, which launched innovative premium class-only service between New York and London in 2005, announced that new expansion capital of $75 million has been raised from both current and new institutional investors.

The new funding will help underwrite the acquisition of additional aircraft, as well as continued product and service innovations. Eos‘ dedication to personal service and its specially configured 757‘s, redesigned to carry 48 guests in suites with horizontal beds and 21 square feet of personal space, has earned the loyalty of a growing segment of trans-Atlantic travelers.

source: Business Wire

Austrian Airlines will start regular flights from Vienna to the northern Iraqi city of Arbil twice a week from December 11, nine months after it abandoned a similar plan.

Austrian, the first European carrier expecting to launch scheduled flights to Iraq, said it saw the capital of the country’s Kurdistan region as a secure destination.

source: Airwise

Dubai-based airline Emirates has become the first airline to allow its passengers to use personal mobiles onboard. Under the deal with telecom company AeroMobile, the airline will introduce the new facility from January 2007 with a Boeing 777.

source: Sawf.org

Continental Airlines Inc. can provide free wireless Internet access to its top customers at Boston’s Logan International Airport despite the objections of the agency that runs the airport, the Federal Communications Commission ruled.

source: The Age 

The newest nonstop flight is to operate from Nov. 17 to April 10, three times weekly in each direction.

On days the nonstop flight does not operate, American said it will continue to fly its current schedule to Montevideo via Buenos Aires, Argentina.

source: The Business Journal

Portuguese state air carrier TAP-Air Portugal is set to buy its smaller competitor PGA-Portugalia Airlines for 140 million euros, with the acquisition agreement signed Monday in Lisbon.

source: Macauhub

Air Canada last month began unbundling flight options through its Web site, allowing travelers to customize bookings by “buying added services or, conversely, to save money by declining benefits normally included in their selected fare type.”

While several large carriers in the United States indicated no immediate plans to follow such an unbundled booking model, some in the industry expect selective merchandizing of airfares to accelerate, as carriers seek to differentiate and monetize offerings. Worldspan, the third largest U.S. global distribution system, said it is seeking new technologies to enable carriers to further merchandize their products.

source: BTNonline