Singapore Clings to the Luxury Mantle

Tony Fernandes, the flamboyant chief executive of budget airline AirAsia, joked last month that he could buy Singapore Airlines and even displayed an artist's impression of his competitor's plane painted in AirAsia colours.

It was a tongue-in-cheek jab, but one that struck at a painful truth for Singapore Airlines The company has stuck to its luxury image even as low-cost carriers picked off passengers in a weak global economy, and profits have suffered.

The airline reported an unexpected loss in the January-March quarter, its first since the tail end of the global financial crisis in 2009 which crushed global air travel. Its shares are down 29 percent in the past 12 months, while AirAsia's  are up 10 percent.

UK Airlines Join Forces To Force Govt Action

 Britain's aviation industry said the government needs to come up with a clear, long-term policy to address capacity issues at its main airports, or face the prospect of falling further behind European rivals.

Britain will launch a consultation document on aviation next month, with Ferrovial-owned BAA  expected to lobby again for a third runway at Heathrow Airport, which it operates.

A group made up of BAA, British Airways-owner IAG  Virgin Atlantic, Manchester Airports Group, the Trades Union Congress and the Chamber of Commerce said on Monday the government should implement a new policy immediately, and not rule out options favoured by the industry, such as a third runway.

Put Oxygen Back In The Can Says FAA

The government is giving airlines more than three years to restore emergency oxygen to aircraft lavatories, although safety advocates say that's too long to be without the potentially life-saving supplies.

WiFi on Japan's Main Airlines.

JAL will start offering Wi-Fi from July 15 on flights between Tokyo and New York, it said. A one-hour plan will cost US$11.95, while 24 hours of access will cost US$21.95. The Wi-Fi will be offered for free through September for first class and other elite passengers.

The service will be offered on the New York route every other day until Aug. 5, then on every flight. In late August, Wi-Fi will be expanded to flights from Tokyo to Los Angeles and Chicago, and in October flights to Jakarta will also get access.

American Airlines Staff Seek New Talks

Flight attendants and mechanics at American Airlines want to resume contract talks as a deadline nears for a federal judge to rule on whether the airline can impose its own terms on workers.

Separately, the pilots' union board was meeting Tuesday to reconsider whether to let members vote on American's final contract offer.

Tuesday's developments raised the prospect that American could negotiate voluntary cost-cutting deals with all three of its labor unions, which seemed unlikely just a week ago.