Northwest Airlines lost $377 million in the second quarter, a result that included a non-cash impairment charge of $547 million and a $250 million gain from fuel hedge adjustments.

Northwest reported that its operating revenue for the second quarter rose to $3.6 billion, up 12.4% from the year before. Consolidated passenger revenue increased 10%, to $3.1 billion. Northwest called the revenue growth "among the best in the industry during the quarter."

European Antitrust Authorities Approve Delta-Northwest Merger
Source: copyright 2008, Travel Weekly

Delta and Northwest have received unconditional clearance from the European Commission on the airlines' proposed merger.

The European Commission said the merger would not hurt competition in transatlantic markets, said Delta. The two airlines already have antitrust immunity, along with Air France and other carriers in the SkyTeam alliance, to collaborate on transatlantic routes.

The airlines, which plan to finalize their $17 billion merger by the end of 2008, still require approval from shareholders and the U.S. Justice Department.

Delta Appoints Delta-Northwest Post-Merger Leadership Team
Source: copyright 2008, Travel Weekly

Delta has unveiled the executive team that will lead the airline if the merger with Northwest is approved by shareholders and antitrust authorities.

Current Delta CEO Richard Anderson would retain the CEO post. As reported, Northwest CEO Doug Steenland would take a seat on the new Delta's board of directors.

Upon closing, Northwest would become an operating subsidiary of Delta during a transition period, and each senior executive would be an officer of both Northwest and Delta.

Ed Bastian, Delta's current president and CFO, would also become CEO and president of Northwest. Mike Becker, currently senior vice president of human resources and labor relations at Northwest, would become executive vice president and COO of Northwest during the transition period.

Other executives at the new Delta would be Mike Campbell, executive vice president of human resources, labor and communications; Steve Gorman, executive vice president, operations; Glen Hauenstein, executive vice president, revenue and network; Ben Hirst, senior vice president and general counsel; Laura Liu, senior vice president, international; and Theresa Wise, senior vice president and chief information officer.

Quick Notes:
Source: Northwest Email Extra

Frequent fliers on American Airlines Inc. got hit with another round of fees - this time to upgrade discounted economy class tickets to the business and first class cabin.

Such one-way upgrades for trips in North America and between North America and Central America will cost customers $50, plus 15,000 frequent flier miles, starting Oct. 1.

And fees to upgrade a discounted economy seat on flights between North America and certain parts of South America, Asia and Europe will jump from $300 to $350 one way.

Delta Air Lines Inc. said Tuesday it will offer broadband wireless Internet access on its entire mainline fleet in the United States by the middle of next year. Continental Airlines Inc. previously announced plans to offer similar service across a majority of its mainline fleet.

Atlanta-based Delta said Wi-Fi service will be offered for a fee to customers traveling throughout the continental U.S.

The No. 3 U.S. carrier is partnering with Aircell, an airborne communications provider, to install the network on Delta's domestic fleet of more than 330 aircraft.

A flat fee of $9.95 will be charged on flights of three hours or less, and $12.95 on flights of more than three hours.

The service will be offered initially on Delta's fleet of 133 MD88/90 aircraft and will expand to the remaining domestic fleet of more than 200 Boeing 737, 757 and 767-300 aircraft during the first half of 2009. It expects to have the technology installed on its entire domestic fleet by next summer.

Delta Raises Fee for a Second Bag
Source: The New York Times.com

Delta Air Lines said Tuesday that it was doubling, to $50, the fee for checking a second bag, three months after airlines initially began imposing the charge.

The airline is also raising fees for checking special items, like surfboards, as well as luggage beyond two bags. Bags that exceed Delta's weight allowance will also cost more.

Delta did not join other major airlines this summer in charging to check a first bag on flights within the United States. But Delta was among the airlines that began charging $25 in May for a second bag.

The Midwest Air Group will cut daily flights to 11 United States cities including Baltimore, San Diego, St. Louis and two Florida destinations as the carrier grounds a third of its fleet to counter soaring fuel costs.

Midwest will stop flying on Sept. 8 to Fort Lauderdale and Fort Myers in Florida, as well as to San Diego, the company said in a statement on Sunday. The airline will keep its service to Los Angeles and Seattle, though passengers will travel through Kansas City, Mo., as they do on its San Francisco route, the company said.

Eight more cities, including Baltimore, Hartford, St. Louis, San Antonio and Louisville, Ky., would be dropped from its Midwest Connect regional jet service after Sept. 8, Midwest said.

The airline also says it will no longer offer daily flights to Orlando, Fla., from Milwaukee, though it will fly passengers there from October to April.

The airline had served 47 cities at the beginning of the year, the company said. Before Sunday's announcement, the carrier had suspended flights to Austin, Tex.; Charlotte, N.C.; Colorado Springs; and Duluth, Minn., Midwest said. The airline will continue to serve 32 cities.

Say goodbye to bonus miles. US Airways, on Aug. 6, is eliminating this standard perk. Not only will elite Dividend Miles members no longer earn extra miles on flights with US Airways and partner airlines, but they'll also pay processing fees on flight award redemptions ranging between $25 and $50.

US Airways Pulls Movies From Some Flights
Source: copyright 2008, Travel Weekly

On Nov. 1, US Airways will remove in-flight movies from domestic A320 flights of over two-and-a-half hours and flights to the Caribbean and Mexico.

US Airways said the move is expected to save the airline $10 million a year in fuel and other costs, according to Travis Christ, vice president for sales and marketing. The video systems add about 500 pounds to a plane's weight, increasing fuel use.

US Airways Now Charging for Sodas and Coffee
Source: sun-sentinel.com

If you're scheduled to fly on a US Airways flight and order coffee, tea or soda, don't be surprised if the flight attendant holds out a hand.

He or she won't be looking for a tip -- the airline Friday became the first major carrier in the nation to charge for soft beverages.

On July 14, 2008, Air Canada will introduce new year-round non-stop service between Toronto (YYZ) and Grand Rapids, Michigan (GRR), making it the only non-stop service between these two cities. This new route will offer three non-stop flights, operated by Air Georgian on behalf of Air Canada, with 18-seat Beechcraft aircraft (all Economy Class service).

Air Canada will offer three flights in each direction daily.
Grand Rapids to Toronto:

• Depart 6:05am / Arrive 7:28am
• Depart 10:20am / Arrive 11:43am
• Depart 6:20pm / Arrive 7:43pm

• Depart 8:00am / Arrive 9:32am
• Depart 4:25pm / Arrive 5:57pm
• Depart 8:15pm / Arrive 9:47pm

British Airways and Spanish flag carrier Iberia are engaged in merger talks, announced the two airlines. The British Airways and Iberia brands would be retained as part of a combined group.

"A merger would be good news for our customers and enhance our existing relationship," said Iberia CEO Fernando Conte. "We've worked together for nearly 10 years, and a tie-up would build on that success. It would also strengthen the Oneworld alliance and further develop Madrid's position as the European gateway to Latin America."

Qantas said on Friday it would cut 1,500 jobs worldwide by December. Also, the Australian airline will not implement its budgeted 8% growth for the 2008-09 financial year.

CEO Geoff Dixon said job cuts will be concentrated in non-operational areas, although operational positions will also be affected.

The office of California Attorney General Edmund G. Brown Jr. announced today that a lawsuit has been filed against YourTravelBiz.com (YTB) "for operating a "gigantic pyramid scheme" that recruited tens of thousands of members with deceptive claims that members could earn huge sums of money through its online travel agencies.

"YourTravelBiz.com operates a gigantic pyramid scheme that is immensely profitable to a few individuals on top and a complete rip-off for most everyone else," Attorney General Brown said. "Today's lawsuit seeks to shut down the company's unlawful operation before more people are exploited by the scam."

YourTravelBiz.com and its affiliates operate an illegal pyramid scheme that only benefits members if and when they find enough new members to join the scam. Once enrolled, members who join the pyramid scheme earn compensation for each new person they enlist, regardless of whether they sell any travel. The company lures new members by offering huge income opportunities through online travel agencies yet the typical person actually makes nothing selling travel." Read more online.

Six U.S. network airlines will place ads and destination information on online boarding passes printed by passengers at airline websites.

American, Continental, Delta, Northwest, United and US Airways have partnered with Sojern, an Omaha, Neb.-based company that will use its proprietary technology to place the ads.

Airport lounges are the latest casualty of the current crisis in the airline industry.

United Airlines announced this month that it was shutting four of its 38 Red Carpet clubs, after closing three others in the United States and overseas in the last few years.