Indian largest domestic airline Jet Airways is being tipped to buy-out Air Sahara in a deal worth $560 million, according to local media.

Qantas has told its low-cost offshoot to look for expansion opportunities that will require boosting its fleet beyond the 23 177-seat A320s it will have by June.

United Airlines will keep mainline capacity flat at 140.9 billion ASMs in each of the five years 2006-10 inclusive.RPMs also are expected to be flat. The carrier sees scheduled passenger RASM climbing from 9.32 cents per ASM to 10.26 cents over the forecast period. It provided the guidance in a filing with the US Securities and Exchange Commission Monday. It also sees nonfuel operating CASM for the mainline rising from 7.47 cents in 2005 to 8.29 cents in 2010.

Less than two months after he announced a 35% downsizing of British Airways' top management (ATWOnline, Dec. 1), CEO Willie Walsh yesterday presented an overhaul of BA's poorly performing regional operations.The changes begin with British Airways CitiExpress, which will be renamed BA Connect. The Club Europe brand no longer will feature on regional services to continental Europe. In line with competing LCCs, BA Connect will move to a single-class cabin and "buy-on-board" hot and cold catering. Fares will be reduced by more than 40% and there will be two ticket types: BA Connect, a nonrestricted and changeable ticket, and BA Connect Plus, a nonrestricted and changeable ticket with airport lounge access and instant seat selection at the time of booking.

As expected, the European Court of Justice followed last September's opinion of the advocate general and upheld the European Commission's regulation concerning common rules on compensation and assistance to passengers in the event of denied boarding, long delay or flight cancellation.The regulation came into force on Feb. 17, 2005, and provides for compensation of 250 ($302.73) for denied boarding on flights of under 1,500 km., 400 for flights of between 1,500 and 3,500 km. and 600 for flights of more than 3,500 km. Meals, hotel rooms and other compensation are required for certain delays.

Small Indian carrier Jagson Airlines is seeking to become a national operator and plans to add Airbus A320-family aircraft to its fleet of turboprops.

A low-fare airline being set up in Saudi Arabia is expected to launch services by the middle of this year.

Emirates Airline's training and rostering practices have been criticised by South African investigators in their report into a take-off accident involving one of the carrier's Airbus A340-300s at Johannesburg in April 2004.

Shares in low-cost airline easy Jet took off yesterday are adding more than ?100million to its value.

Negotiations are resuming between Air New Zealand and unions over the future of the airline's engineers.