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Indian government auditors have criticised the aviation ministry over its decision to buy 111 planes for the national airline, Air India.

In a report submitted to parliament on Thursday, the auditors said the 2005 decision was “‘a recipe for disaster'”.

Air India has been losing millions of dollars in recent years.

The ailing state-run airline wants government money to help turn its fortunes around.

The report also questioned the bilateral agreements the ministry entered into with foreign countries which, it said, favoured international airlines.

source: BBC.co.uk

German flag carrier Lufthansa plans to sell some or all of its loss-making unit British Midland (BMI), board member Stefan Lauer said today.

Lauer said that Lufthansa however intended to hold onto Austrian Airlines (AUA) despite it too being a drag on company profits.

BMI lost €120m in the first six months of the year.

source: rte.ie

Transport minister Leo Varadkar said Aer Lingus is ‘”certainly under consideration'” as part of the government’s attempts to raise €2bn (£1.8bn) through asset sales as it desperately battles to cut national debt.

“‘That stake in the past was held for strategic reasons,'” Mr Varadkar told Irish media on Wednesday. “‘I don’t think that really stands anymore.'”

The government had considered Aer Lingus’s slots at Heathrow airport to be vital to Ireland. However, their importance has diminished because of an increase in direct flights to and from Dublin.

source: Telegraph.co.uk

Airlines including EasyJet, Lufthansa’s BMI and Flybe are being investigated by the ‘Office of Fair Trading’ over surcharges for using debit and credit cards.

The OFT said on Thursday it had opened a formal investigation into “‘a number of airlines’”.

The probe followed a warning by the regulator in June that retailers that levied artificially high fees for card payments, or did not advertise fees charged, faced action under consumer protection laws.

source: FT.com

Monarch Airlines‘ parent company The Monarch Group has cancelled its order for the much anticipated Boeing ‘Dreamliners’. It had ordered six but after a number of rumours circulating recently, it has confirmed it won’t be buying them.

Monarch told the press in June that it would focus on expanding its short-haul network.

A spokesperson confirmed: “‘Monarch Airlines will see further expansion into new UK bases and new routes from 2012, whilst remaining dedicated to supporting its long standing tour operator partner needs. Further consideration will be given to developing and strengthening its long-haul options in the future.’”

source: gotimeshare.org

For the seventh year running, British businessmen find Moscow hotels the world’s most expensive, ahead of Geneva, Zurich and Paris.

The average Moscow room rate from January to June this year cost £261, compared to £228 in Geneva and £220 in Zurich.

The Russian capital is also home to the world’s wealthiest expats, with over a third of them earning in excess of £160,000 per annum.

fuente: telegraph.co.uk

Etihad Airways, the national airline of the UAE, and the Formula One Group signed an agreement extending the airline’s title sponsorship of the ‘Formula 1 Etihad Airways Abu Dhabi Grand Prix’ for four years, effective through to the 2015 event.

Etihad has been title sponsor for the event since the inaugural Formula 1 Etihad Airways Abu Dhabi Grand Prix in 2009. James Hogan, Etihad Airways CEO, and Bernie Ecclestone, Formula One Group CEO, were on hand to pen the multi-million dollar deal.

source: emirates247.com

International Airlines Group (IAG), the company formed from the merger of Iberia and British Airways, has hired US bank JP Morgan to advise on an offer for Portuguese airline TAP, according to reports in the British financial press.

The reports note that this agreement could help IAG improve earnings in expanding markets, as per plans outlined by company president Willie Walsh in an interview with a news agency in August.

source: sharecast.com

British Airways is inviting users of the carrier to contribute to an online collection of itineraries through their new ‘Perfect Days‘ Facebook app.

Consumers can pick a city the airline flies to and create an itinerary for a 24 hour stay there. Integration with Google Maps allows users to mark each café, museum or bar on a map; other Facebook users can therefore see the precise route and click on each attraction to read information about it.

source: businessrevieweurope.eu

The recent order of 100 Boeing 737-900ERs by Delta Air Lines reflects an urgency by legacy carriers to replace ageing aircraft, but the airline’s decision to go with the -900ER does not preclude it from being an operator of the re-engined 737 Max.

Delta, which first announced the order on 25 August, said separately in a regulatory filing on 30 August that it is cancelling 126 existing options for 737-800s in exchange for an additional 30 options for the -900ER, on top of the 100 firm orders.

The SkyTeam carrier announced the order just days before Boeing rolled out the re-engined 737 Max, which the airframer said has already garnered 496 commitments from five carriers.

source: Flight Global