Etihad Airways' owner, the government of the United Arab Emirates, expects a return on its investment by 2009, VP-Commercial Geert Boven told ATWonline.The government invested AED5 billion ($1.36 billion) to have its own national carrier, yet "we have to run the airline as a commercial enterprise. The government expects return on investment within the four or five years after its launch in 2003," according to Boven, who admitted the government is seeking recognition as an important player on the international business stage as well as financial return.

Malaysia Airlines delivered the news its employees feared (ATWOnline, March 24), announcing it will abandon all but 19 domestic routes to AirAsia, take 19 aircraft out of service and lay off approximately 6,500 employees, or about 28% of its workforce.AirAsia will take over the remaining 96 routes and compete with MAS on the other 19, giving passengers the option of choosing a full-service or a low-cost carrier. The Malaysian government said it will stop subsidizing MAS from Aug. 1, according to press reports, although the carrier said in a statement that the government will compensate it for costs incurred in the restructuring of its domestic network.

Takeover target BAA PLC said Tuesday it was considering investing in airports in China as passenger growth at its British airports slows this year.

The Italian-based aeroplane chair company AVIO will produce chairs in its joint venture in Hubei Province in central China.

Spain's Grupo Ferrovial has scheduled more meetings with BAA shareholders this week as it seeks support for its GBP?8.8 billion (USD$15.37 billion) bid for the British airports group, a source familiar with the situation said on Monday.

Airbus does not expect to sell its wide-body, long-haul A380 aircraft in Latin America before 2010, a regional executive for the European plane maker said on Monday.

Britain's BMI is suffering a collapse in passenger numbers as it loses out in a dogfight with low-cost rivals, train operators and European flag carriers, reports The Guardian.

Hong Kong Express Airways (HKE) has signed a three-year contract with SITA for the Horizon portfolio to include the use of SITA Reservations-the system of choice used by over 160 airlines worldwide to manage their distribution and sales processes.

Austrian Regional carrier Styrian Spirit shut down operations Friday, stranding hundreds of passengers, and subsequently declared insolvency.The Graz-based airline had been hopeful of securing a potential partner who would have injected ?5 million ($6 million), but the deal fell through and 152 employees will lose their jobs. CEO Andreas Roesslhuber told ATWOnline a few days prior to the closure that the carrier needed ?6-?9 million in fresh capital. Total debts are estimated at around ?44.4 million.

Lufthansa has shared that it generated total revenue of 18.1 billion euros in 2005, which was 6.5 percent more than in 2004. The Lufthansa Group increased operating profit in 2005 by 50 percent to 577 million euros. (3/25/2006)