British Airways Advance Airline Company Talk Merger with Qantas Airways

British Airways PLC, already in advanced merger talks with Spain’s Iberia Lineas Aereas de Espana SA, Tuesday said it is also in talks with Australian carrier Qantas Airways Ltd.

The U.K. flag carrier said the all-share merger talks with Iberia are continuing, but it is also exploring a dual-listed company structure with Qantas. It has also been talking to AMR Corp.’s American Airlines about a three-way tie-up with Iberia.

BA said it was approached by Qantas, and it has been talking about a merger of equals since August.

Any deal with Qantas will have to overcome Australia’s airline ownership laws, which say a foreign carrier can’t own more than 35% of an Australian airline and total foreign holdings can’t exceed 49%.

The Australian government earlier Tuesday said it will consider removing the 35% cap, although it will maintain the legal requirement for majority Australian ownership of the country’s international airlines, including Qantas, “to ensure a strong, Australian-based aviation industry continues into the future.”

BA has attempted an equity tie-up with Qantas before — in 1993 it bought and sold a 25% stake in Qantas as it tried to gain presence on the profitable London to Australia route.

The latest merger talks come as airlines around the world, but particularly in Europe, seek to merge to build scale and create synergies that will significantly cut costs. The industry has seen losses mount this year as it was battered first by record-high oil prices and then by shrinking passenger numbers as the economic downturn took hold.

BA also needs to keep up with its two main European rivals, Air France-KLM and Germany’s Deutsche Lufthansa AG, which are leading Europe’s consolidation.

Air France-KLM, now the world’s biggest airline by revenue, was created in 2004 by the merger of Air France and KLM of the Netherlands. It is courting the new owners of Italy’s Alitalia SpA about a tie up. Lufthansa, meanwhile, having acquired Swiss, is also courting the Italians and attempting to acquire Austrian Airlines AG.

Frontier Airlines Offering Cheap Airline Tickets to Celebrate Colorado Day

Frontier Airlines is celebrating Colorado Day because Denver is their base location that they operate out of. They are offering the lowest airfare tickets for the year going to Colorado. The sale is going on from August 1st and ends at 11:59 p.m. EDT on August 4, 2010. The prices are advertised as one way fares. If you aren’t traveling to Colorado, you still can find other discounted flights with their Duck Sale which has several flights starting at $29 one way and is on sale for the same days.

Frontier Airlines have been operating out of Colorado for over 16 years now, which is why they are offering discount airline tickets for the next couple of days. Denver is their largest hub that Frontier Airlines operates out of in United States. Colorado Day is celebrating its 134th anniversary of becoming a state.

You have to book your discounted flight tickets at least 14 days in advance and are for travel dates for off-peak travel August 24 through November 17, 2010. The cheapest flight days are on Tuesday, Wednesday, and Saturday. The other days have a slightly higher airfare price. Seats are limited and some flight days might not be available, especially during busy travel days.

Here a just a few sample discounts flight tickets included in the Colorado Airfare Sale:

Albuquerque, New Mexico to Denver $29
Los Angeles to Denver $ 59
Chicago to Denver $59
Fairbanks Alaska to Denver $199

Depending on the fare purchased there could be a $20 fee for the first piece of checked luggage, and a $30 fee for the second piece. There are additional taxes and fees that are not included in the sales price, so make sure to read the fine print when booking your flight.

You can book your flights at Fontier Airlines website.

Southwest Airlines Agree $1.4 billion to Buys AirTran Airways

Southwest Airlines, the nation’s largest low-fare carrier, said on Monday that it had agreed to buy its smaller rival AirTran Airways in a transaction valued at $1.4 billion, expanding its foothold in New York and Boston and allowing it to move into Atlanta, the nation’s largest airport.

The deal is valued at $3.4 billion when AirTran’s debt and aircraft leases are included. Southwest said the purchase had been approved by the boards of both companies, although it still needs regulatory and shareholder approval.

The move comes as the domestic airline industry is consolidating and reducing the number of seats offered as it attempts to return to profitability. United Airlines is taking over Continental Airlines on Oct. 1, after shareholders of both companies recently approved the tie-up and the government gave the green light. Delta Air Lines led the way in 2008 when it acquired Northwest.

The transaction is a sharp departure for Southwest, one of the nation’s few consistently profitable airlines. The company’s success had been built on a simple business model, operating the same type of Boeing 737 planes at a higher frequency between smaller airports.

But Southwest has been looking for ways to expand as its network grew. For instance, it had sought ways into the nation’s larger markets, like New York, Boston and Washington.

So far, Southwest’s presence in New York has been very limited. It has a few landing and take-off rights, called slots, at La Guardia Airport. As part of the United-Continental merger, Southwest had recently obtained some slots at Newark Liberty International Airport.

Southwest said the acquisition would increase its presence in New York and open the door to Atlanta, which is the nation’s largest airport and the hub of Delta Air Lines.

Analysts at Deutsche Bank said they expect the deal to gain swift regulatory approval given the speed with which the federal government approved the United-Continental tie-up and the fact that the networks of Southwest and AirTran do not overlap much.

Southwest said the transaction would save $400 million a year by 2013. It said the one-time costs related to integrating AirTran would be $300 million to $500 million.

The offer represents a premium of 69 percent over AirTran’s closing stock price on Friday. AirTran shareholders would receive a combination of Southwest shares and cash. That includes at least $3.75 in cash and 0.321 shares of Southwest common stock for each share of AirTran common stock.

Continuation of Aviation Industry Agreement European Union and U.S.

European negotiator said the European ownership of U.S. airlines was seen after three days of “Open Skies” talks, but the reaction from the United States proposed a deal remains far away.

U.S. Department of Transportation and the State did not mention the lifting of ownership limits summarizes discussions that took place in Brussels.

Both sides agreed to make a permanent treaty of 2007 which allows airlines to fly between the EU and every city and every town of America, which unites the two markets account for nearly two-thirds of global aviation.

They also agreed to deepen U.S. cooperation in the European Union aviation security, safety, competition, and ease of travel.

But the loosening of ownership limits U.S. airlines will require action by Congress, where several MPs were seeking to reinforce the key provisions that limit foreign control, capped at 25 percent of the voting shares of a courier.

“Our Congress is not ready to give it. We can not do that,” said a U.S. aviation consultant.

China Eastern Airlines Corp. Limited Trading in Hong Kong, Shanghai and New York

China Eastern Airlines Corporation Limited, announces that, following a request made by the Company to the Stock Exchange of Hong Kong Limited, trading in its H shares has been suspended with effect from 9:30 a.m. on November 27, 2008 pending the release of an announcement, the nature of which is price-sensitive. Trading in the Company’s A Shares on the Shanghai Stock Exchange was suspended on November 27, 2008.

Trading in the Company’s ADSs on the New York Stock Exchange has also been suspended with effect from 9:30 a.m. New York time on November 28, 2008.

source : China Eastern Airlines Corporation Limited