Airlines

Merger mania talk draws in Southwest, Continental

As airline industry observers and analysts continued to mull over the implications of a proposed US Airways-Delta merger last week, Southwest Airlines set its sights on possible spin-off assets, and Continental indicated it might be a willing party to even more consolidation.

Southwest officials confirmed that chairman Herb Kelleher contacted the CEOs of both US Airways and Delta to let them know that Southwest would be interested in acquiring redundant assets in the eastern U.S. if the proposed merger ever happens. Meanwhile, Continental Airlines CEO Larry Kellner sparked a wave of speculation when he said in a memo to employees last week that although the company prefers to remain independent, Continental will "do what we need to do" if "the landscape of the U.S. airline industry does change." Observers took that to mean Continental was open to the possibility of a merger.

American automates international check-in procedures

American Airlines said last week its airport self-check-in machines are being upgraded to handle international itineraries. Some 365 of the airline's airport self-service machines now have passport readers for use by passengers traveling outside the U.S., or returning to the U.S. from an overseas airport. International passengers holding e-tickets can simply swipe their passport or insert a credit card through the reader; if the passport is not machine-readable they can enter the required data manually. "All passengers will still have their documents verified, whether by an agent during self-service check-in or by an agent at the gate prior to boarding," an American spokesperson said.

International

All-business-class start-up carrier plans January debut

A third all-premium-seating airline plans to begin service between the U.S. and the U.K. in January, according to wire reports. U.K.-based Silverjet (www.flysilverjet.com) has reportedly won government approvals to operate between Newark and London's Luton Airport, and expects to launch its inaugural flight on January 25, 2007. The airline will use 100-seat 767s with flat-bed seats that are six feet three inches long. According to the airline's web site, it is offering introductory fares as low as $799 each way for bookings made by December 31, plus various fees and taxes.

Air France-KLM eyes Alitalia takeover

Will Europe's largest carrier soon get bigger? Air France-KLM, which is now a single company, disclosed last week that it has started negotiations aimed at a possible acquisition of Alitalia. Half of the carrier is still owned by the Italian government. However, some analysts question the wisdom of a possible acquisition by Air France-KLM, since Alitalia has been steadily losing money for almost a decade.

Virgin Atlantic upgrades Premium Economy service

Virgin Atlantic Airways is deploying new seats in the Premium Economy sections of its long-haul aircraft. The company said the new leather seats will offer a 38-inch pitch and a width of 21 inches, which is "wider than many airlines' business class seats," a spokesman noted. The seats will also feature "enhanced ergonomics for improved comfort, a dual position footrest, lumbar support, adjustable headrest with wings, laptop power and a redesigned tray table," the spokesman said.

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