Airline News

These are the aviation trends we were talking about this week.

When airlines such as Delta and Etihad opt to make investments in partner airlines around the globe instead of making acquisitions, which can trigger regulatory hassles, the investor carriers are going to be subject to economic turmoil in partners' domestic markets. That just goes with the territory.

At least, as a strategy to eliminate competition and quickly acquire hard assets and frontline employees, this acquisition could prove profitable to Alaska Airlines. That's assuming JetBlue doesn’t get to disenfranchised customers first.

Rumors of a downturn in corporate travel have been greatly exaggerated according to Delta Air Lines. Delta executives, however, do admit that corporate yields have decreased.

Legacy carriers are up against rising competition from low-cost carriers. At the same time, American, Delta and United talk about making the travel journey more connected but they're forcing budget sensitive travelers in the opposite direction of that with new pricing structures.

If you take Delta at its word, then fears that the introduction of Basic Economy fares to compete with the ultra-low-cost carriers on price would dilute the spend of usually higher-paying passengers haven't been borne out. Still, the situation is fluid as other legacy carriers are set to introduce these discounted fares, as well.

Air China has evolved from a transport utility to a strong airline brand, and plans to grow its routes around the globe.

JetBlue management is obviously upset that it couldn't consummate the deal with Virgin America because of the key importance of transcontinental expansion. But JetBlue didn't want a merger at any price and now it is going to play hardball in trying to steal away Virgin America's potentially alienated customers.

All signs point to JetBlue making a meal of this Alaska Air/Virgin America situation. Butter the popcorn and watch this space.

Finnair has mapped out a plan to link the east and the west in a unique way which highlights the attractiveness of Northern European destinations. When you know where you want to be, it's easier to make concrete plans to get there.