Air Canada Deal?

The union representing Air Canada flight attendants was optimistic on Tuesday that its members would support a last-minute labour deal hammered out with the country's biggest airline.

The tentative contract agreement was reached between Air Canada and the Canadian Union of Public Employees CUPE.L on Tuesday afternoon, less than nine hours before the start of a strike by about 6,800 flight attendants, which would have grounded much of the airline's fleet.

The agreement must still be ratified by union members, who rejected a previous deal with Air Canada last month.

"We are pretty confident that we have a good deal," said Jeff Taylor, president of CUPE's Air Canada component.

Air Berlin fleet cuts

By Victoria Bryan Reuters

Germany's two largest airlines said on Wednesday they were cutting capacity and fleets to salvage profits, as economic turbulence hits bookings numbers and prompts customers to put off booking flights until the last minute.

Air Berlin (AB1.DE) said it hoped to pass on planes it no longer needed to Asian rivals, while German flagship airline Lufthansa (LHAG.DE), which on Tuesday shocked investors with a profit warning, said it would now only increase capacity over the winter by 4 percent.

Lufthansa had in July already reduced the planned growth in capacity to 6 percent, down from an original 12 percent and indicated on Wednesday it could cut more seats.

Go's Goahead

Brazilian airline Gol has been given the green light for its purchase of low-cost carrier Webjet by the country's civil aviation administration ANAC.

Shortly after the deal was signed on 8 July, the agreement was forwarded to ANAC and other government agencies for final approval. ANAC's go-ahead is conditional on similar approvals from Brazil's securities exchange commission (CVM) and the CADE - a justice ministry agency that oversees large-scale financial transactions.

More drama from bomb trial

The accused underwear bomber Umar Farouk Abdulmutallab has "vehemently" objected to plans by prosecutors to show a model of the device he is charged with attempting to use to blow up a passenger airliner on Christmas Day 2009.

"Abdulmutallab vehemently objects to the government introducing a model of the bomb," Anthony Chambers, who is Abdulmutallab's stand-by attorney, said in documents filed late on Tuesday with the U.S. District Court in Detroit, reports Reuters news agency.

"Presenting the jury with a model of the bomb is unfairly prejudicial, and is only meant to inflame the jury and appeal to the jurors' emotions," Chambers added, in asking that the evidence be excluded.

Chambers said the government's pictures of the remnants of the bomb would achieve its goal. The trial is set to start on October 11.