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US airlines were racing this week to demonstrate their clean energy credentials, scheduling a number of flights partially powered by biofuels.

First United Continental announced the departure on Monday morning of Flight 1403 from Houston for Chicago – or the’ Eco Skies’ test flight as the airline called it – using a mix of 60% conventional jet fuel and 40% algae-based fuels.

Then Alaska Airlines announced it would operate 75 flights using a mix of 80% conventional jet fuels and 20% biofuels starting on Wednesday. Instead of algae-base, the airline is using used cooking oil or fast-food restaurant throw-aways, said Robert Ames, vice-president of Dynamic Fuels, which produced the fuel.

These flights could encourage the rest of the industry move towards cleaner fuels.

source: Guardian.co.uk

International Airlines Group (IAG) and Lufthansa Group reached an agreement for the sale of LH’s loss-making British Midland (bmi) to IAG. The purchase of bmi could increase IAG subsidiary British Airways’ share of slots at London Heathrow to 53%, although regulators most likely will require some slot divestments.

The companies did not detail whether the agreement is for the sale of the entirety of bmi or just the carrier’s mainline operation. Recently, bmi confirmed it was “‘in advanced discussion’” to sell bmi regional to a UK-based investor group “‘previously associated with the regional business,’” indicating its owner was negotiating to divest its loss-making UK subsidiary in parts. It is not clear what will happen with the company’s low-cost carrier, bmibaby.

source: atwonline.com

Travel professionals from around the world have voted Lufthansa as the best ‘Business Class Airline in Europe for 2011’ in the fourth annual ‘Business Destinations Travel Awards’.

The awards are chosen by a vast and diverse cross section of primary users and purchasers of corporate travel and MICE (Meetings, Incentives, Conferences and Exhibitions) who also assess online presence (website design and ease of use), sustainability practices, environmental awareness and Corporate Social Responsibility (CSR).

Shares of American Airlines parent AMR Corp. fell Friday, and an analyst predicted the company will wind up in bankruptcy unless it gets a break from lenders or more cash.

The shares dropped 19 cents, or 6.6 percent, to close at $2.69 and fell as low as $2.59 during the session.

Other major U.S. airline stocks also fell, as higher oil prices signaled rising jet fuel costs, but they declined less than half as much as AMR.

source: washingtonpost.com

Animal lovers plan to rev up a nearly 2-month-old search at John F. Kennedy International Airport on Saturday for Jack the cat, a fluffy orange feline whose disappearance at the hands of American Airlines has spawned a Facebook page and a PR headache for the airline.

The date has been declared ‘Jack the Cat Awareness Day’ by organizers of the afternoon search at the cargo area of JFK where Jack was last seen Aug. 25. That’s when Jack’s owner, Karen Pascoe, checked the 18-pound cat in for their flight to California, where Pascoe was to begin a new job.

The airline notes that its efforts since the end of August have included hiring a pet detective, flying Pascoe back from California to help search, and placing food, water and humane traps in the cargo area — all to no avail.

source: latimes.com

Air France claims to have completed the world’s lowest CO2 emissions flight, using a mix of sustainable biofuels, optimised flight procedures and reduced onboard mass.

The commercial 80-minute flight from Toulouse to Paris pumped out only half the greenhouse gases of other flights of the same length, according to the airline.

source: Travelmole.com

China’s largest airline by fleet size kept up pressure on the European Union over carbon trading rules as it took delivery of the country’s first European A380 superjumbo on Friday.

China Southern, which has ordered five of the world’s largest airliners built by Europe’s Airbus, said it would fly the first two aircraft on busy domestic routes before putting the planes on foreign routes next year.

It has not yet decided whether to operate the aircraft to Europe or the United States.

China and the European Union have clashed over the trade bloc’s plans to force airlines to adopt a carbon trading scheme from Jan. 1 next year, a move which airlines say would effectively tax the airlines that fly the longest routes.

Source: Reuters.com

Etihad, the fast-growing Middle Eastern airline, has approached the Irish government to buy its 25 per cent stake in flag-carrier Aer Lingus, people with knowledge of the move said.

The approach comes after the debt-laden Irish sovereign said in September it would sell its stake in the national carrier. Leo Varadkar, Ireland’s transport minister, said that he would not sell it for less than €1 per share, which would value the stake at €132.4m ($183m) and the airline at €529.6m.

source: FT.com

The board of Spanish airline Iberia is planning to establish a low cost airline to help improve the carrier’s profitability, however their plans could lead to industrial action.

Iberia who is owned by International Airlines Group (IAG) has plans to establish a budget carrier to take on short and medium-haul flights, the Financial Report reported.

The carrier’s performance is also being threatened by intense competition from Europe’s leading low cost airlines Ryanair and EasyJet.

source: etravelblackboard.com

Fears that the holding company for American Airlines, the fourth-biggest US carrier by passenger miles, would file for bankruptcy sent shares in AMR Corporation tumbling by a third on Monday.

Management at AMR, which owns the regional airline American Eagle as well as American, strongly denied the claims.

American is the only big US carrier not to have passed through a Chapter 11 bankruptcy filing in the past decade. That has led to suggestions the company would voluntarily file for bankruptcy to renegotiate labour – and in particular pilot – costs, despite holding a cash pile of about $5bn.

source: Finantial Times