Delta Air Lines said it will buy almost half of Virgin Atlantic for $360 million as it seeks a bigger share of the lucrative New York-to-London travel market. Landing rights at London's Heathrow Airport are limited, and the deal is a way for Delta to expand its foothold there.
Plane tickets are costing 12% to 15% more this summer, and that's before you tack on luggage fees, taxes, charges for on-board meals, and other extras. But with a little flexibility and creativity, you can still land a good deal.
Just over a year after the ash cloud from the Eyjafjallajokull volcano caused an expensive and chaotic shutdown of air travel across much of Europe, an different volcano in Iceland, Grimsvoetn, is erupting.
Cathay Pacific CEO Tony Tyler says when airlines last raised fares in 2008, most travelers kept on flying. But as Mideast upheavals send oil prices skyward and airlines hike fares again, the impact on the bottom line could be quite different.
The European Commission has accused some 13 airlines of collaborating to set cargo and security surcharges -- and to avoid paying commission on these surcharges to clients -- to reduce competition. Eleven of the airlines face a total of $1.1 billion in fines.
British Airways crews will likely go on strike Monday after a court order lifted a ban prohibiting airline employees from walking off the job.
With air travel restrictions still crippling most of Europe, national governments and businesses are starting to bridle under the unprecedented shut-downs. Losses are now reaching more than $200 million a day. A U.K. pilots group says: "A number of airlines are now staring bankruptcy in the face."
More consolidation in the struggling airline industry: As word spreads of similar talks between United Airlines and US Airways, the money-losing British and Spanish carriers have agreed to combine under a holding company named International Consolidated Airlines Group. A major goal will be cutting costs.
British Airways' cabin crews began a three-day strike this weekend that caused the UK carrier to cancel over 1,000 flights over the weekend. The the airline said it would try to accommodate 49,000 passengers, is redirecting many more to other airlines.
