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.

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

Boeing will invest USD$185 million in facilities in India and source 85 billion rupees (USD$1.94 billion) in products and services over a period of 10 years, India's civil aviation minister said on Wednesday.

US Airline stocks took their biggest plunge in 11 weeks on Wednesday on what an analyst said were valuation concerns after a rally which bolstered the sector by 40 percent from a two-year low in September.

India's second-biggest private airline, Air Sahara, on Wednesday denied reports that it was selling out to Jet Airways and said it was only in talks with Jet on strategic alliances.

British airport operator BAA said on Wednesday that it handled 10.7 million passengers in December, an increase of 2 percent from the year before.

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.