The race between American Airlines and Delta Air Lines to strike a partnership with Japan Airlines has taken on added importance following the completion of agreement between the US and Japan to liberalise air traffic. The “open skies” deal will allow airlines from both countries to have a wider range of destinations and effectively operate as a single carrier.

Airline passengers who are delayed by more than three hours should get the same compensation as if their flights have been cancelled, the European Court of Justice has ruled. Under the landmark judgement, passengers whose flights are delayed can receive between €250 and €600, the same as if their flight was cancelled.

The vast majority of people in the UK support a reform of Air Passenger Duty (APD), according to a representative YouGov survey published today. The opinion poll was commissioned by easyJet, the UK’s largest airline in the run up to the forthcoming increase in APD on 1 November.

Lufthansa’s acquisition of the remaining 20 percent of BMI has fuelled speculation that it could imminently try to sell the loss-making airline. The German aviation giant agreed to pay about £38 million to SAS, making it the outright owner, with a further payment should it sell within two years.

Climate activists branded yesterday’s agreement to halve airline emission by 2050 as “complete greenwash” and were a cynical ploy to avoid new taxes that threaten to erode into the industry’s profits.

Ancillary revenue from excess baggage charges and priority boarding are providing struggling airlines with a much-need cash boost as they grapple the aviation downturn. Analysis of the accounts of 92 airlines has found that ancillary revenues rose a massive 345 percent between 2006 and 2008 to €7.68bn.