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Delta Air Lines Inc. raised domestic air fares by $5 each way late Thursday, and American Airlines, the nation’s largest carrier, matched the increase on Friday.

United Airlines, the No. 2 carrier, was studying the increases, said spokesman Jeff Kovick. Two smaller carriers, Alaska Air Group Inc. and Midwest Airlines, matched the Delta increase.

Northwest Airlines Corp., Continental Airlines Inc. and US Airways Group Inc. remained on the sidelines at midday Friday. A spokesman for Southwest Airlines Co. said the Dallas-based carrier had no plans to raise fares immediately.

Scandinavian Airlines announced yesterday it has chosen Beijing as a hub for its future expansion in China and that it will further strengthen ties with Air China Ltd.

Meanwhile, Scandinavian Airlines’ nonstop flights from Copenhagen to Shanghai will stop in April as part of the carrier’s new China strategy, SAS said.

The northern European carrier will have 10 direct flights to China after it opens a Beijing-Stockholm direct service four times a week starting on March 26, SAS said.

source: China Daily

After two years of preparation, Hungarian national airline Malev said on Thursday it would become a full member of the Oneworld alliance of carriers, starting from April 1 this year, the official news agency MTI reported.

Malev is in the process of privatization now. Russian airline AirBridge,the company’s sole suitor at present, is expected to take over Malev’s stakes as part of its privatization scheme, according to MTI.

source: People’s Daily Online

The cost of flying from UK airports increased today after the UK government imposed hikes in air passenger duty.

Under measures announced by Chancellor Gordon Brown in his pre-Budget report in the autumn, short-haul passengers in the lowest class of travel will pay 10 stg in duty from Feb 1, up from 5 stg, and in other classes they will pay 20 stg, up from 10 stg.

source: ABC Money

The United States continues to negotiate with the European Union over how long and in what ways Washington can use the lists of passengers aboard international flights.

A May 2006 agreement between the two parties was struck down by the European Court of Justice citing the extensive privacy laws afforded to EU citizens.

U.S. Homeland Security Secretary Michael Chertoff was in talks last week with German Interior Minister Wolfgang Schaeuble to iron out the details, which include access to things like addresses, telephone numbers and credit card details.

source: All Headline News

US Airways Group Inc.’s decision Wednesday to drop its hostile bid for Delta Air Lines Inc. has damped speculation that a wave of consolidation is about to sweep the industry.

Airline deals may still be in the offing this year, analysts said. But the failure of US Airway’s high-profile effort sends a strong signal that the number of big domestic carriers is unlikely to shrink in the near future.

“‘I would say it’s now much less likely that we’ll see significant consolidation in 2007,'” said Jim Corridore, airline analyst for Standard & Poor’s in New York. “‘I had thought it was imminent. Now, I think it’s still possible but not really in the cards.'”

source: Los Angeles Times

When the inaugural Sky Express flight took off from Moscow’s Vnukovo Airport for Sochi last Monday afternoon, the low-cost airline phenomenon familiar in Europe and the United States finally came to Russia.

The brainchild of Boris Abramovich, general director of the country’s third-largest carrier, KrasAir, Sky Express is the first budget airline to start operating in the country. With a handful of competitors expected to follow, the airline looks set to change the face of domestic air travel by offering tickets for as little as 500 rubles ($19).

source: St Petersbourg Times

Maldives can expect to see a rapid growth in the number of tourists from China, Hong Kong and Macau following the introduction of direct flights from the region with a new budget fare airline.

Viva Macau is the latest entrant in the fast-growing low-fare sector of the airline industry. Maldives is one of the new airline’s launch destinations and Viva Macau believe it will be an increasingly popular route.

It is the only airline in Greater China that offers non-stop direct flights to Maldives, offering customers an opportunity to enjoy the country’s renowned dive sites and beaches.

source: Minivannews

A planned strike by thousands of British Airways cabin crew has been called off following a deal to end a bitter dispute over sickness absence, pay and staffing.

More than 120 hours of negotiations between the airline and the Transport and General Workers Union led to an agreement. A planned 48-hour walkout by thousands of stewards and stewardesses from Tuesday will not now go ahead.

source: icnetwork.co.uk

British Airways and its biggest union are due to resume talks on Monday in a last-ditch attempt to avert a 48-hour strike by cabin staff that could affect more than 140,000 passengers.

A spokesman for the Transport and General Workers’ Union (T&G) said discussions, held at a secret location over the weekend, would start again on Monday.

A comment was not immediately available from BA.

Europe’s third-largest airline has already cancelled around 1,300 flights this week in anticipation of the walkout planned for Tuesday and Wednesday.

source: CNN