British Airways, Europe's third-largest airline by traffic, on Friday dismissed as ludicrous an actuary's suggestion the carrier would need to declare bankruptcy to clear its pensions deficit.

Although SAS Group has succeeded in reducing costs by SEK14 billion ($1.8 billion) over the past three years through its Turnaround 2005 program, the company's namesake airlines, collectively known as Scandinavian Airlines Businesses, continue to underperform. Furthermore, SAS says ongoing contract negotiations with unions are not progressing toward the cost-saving goals it needs, according to a recent edition of the company's internal newsletter. As a result, it is looking at shrinking SAB by eliminating unprofitable routes and cutting frequencies, resulting in layoffs and aircraft disposals. SAS Sverige (Sweden) laid off 120 employees in December while a further 150 were given a choice between transfer and redundancy.

Airports across the country are getting back to normal as thousands of AAI (Airports Authority of India) employees return to work.

Brazilian jet maker Embraer said on Friday it had suspended plans to build a factory in Jacksonville, Florida, after the US Army canceled a contract for a new spy-plane program.

The union representing about 14,000 ground workers at bankrupt Northwest Airlines said on Saturday that it would let members vote on a settlement proposal that could eliminate the need for the airline to void the workers' contract as it seeks savings.

In order to deal with the problem of rising costs due to increased oil price, Hong Kong-based carrier, Cathay Pacific, has recently introduced a new set of company policy, which limits the cabin crew with no more than 4 days layover time to only have one carry-on baggage smaller than the regulated size applies to the ordinary passengers, in order to save fuel. However, the measure has angered many of the airline's cabin crew.

MACQUARIE Airports said yesterday that earnings at the second-largest field in its portfolio, Brussels International Airport, rose 18 per cent last year.

VIRGIN Blue could be forced to pay millions of dollars in back pay to ground staff who failed to receive shift allowances.

FAA yesterday said it has saved $1.4 million in overtime expenses and achieved a 75% reduction in operational errors at the troubled New York Terminal Radar Approach Control facility since reasserting authority over scheduling practices and taking a more hands-on management approach there (ATWOnline, June 3, 2005).

Airbus is to send one of the A380 test aircraft to the Asian Aerospace air show in Singapore next month and will have it flying in the full livery of national carrier and launch customer Singapore Airlines (SIA).