Israel said it would allow local airline Israir to compete with El Al on flights between Tel Aviv and New York. Tourism Minister Avraham Hirchson told a news conference: "In light of the data that was presented to me regarding the significant rise in the number of passengers on the transatlantic route, there is a blatant and essential public interest in the appointment of an additional designated carrier on the Tel Aviv-New York route." The decision would increase the number of flights and seats to meet demand and lower prices, he said. El Al said in a statement it would seek legal ways to reverse the government's decision, which was a "gross breach of the commitment" given by the government to the new owners on the eve of El Al's privatization in 2003.

US Transportation Secretary Norman Mineta suggested that a merger between US airlines Northwest Airlines and Delta Air Lines could result from the latest round of industry restructuring. The US full service airline industry has been battered by rising fuel costs, weak revenue and low-fare competition, leading some carriers, including Delta and Northwest, into bankruptcy. "I sometimes wonder whether or not... Delta and Northwest will come out as a merged carrier," Mineta told an audience of business executives in Shanghai, adding he was "just thinking out loud."

US regulators proposed a USD$500,000 fine against Alaska Airlines for allegedly operating a passenger jet on 478 flights without proper lighting to identify emergency exits. The Federal Aviation Administration said that Goodrich Aviation Technical Services, an outside maintenance provider for the Seattle-based carrier, failed to reinstall the lighting after performing extensive work on the Boeing 737 in 2004. Dozens of subsequent inspections did not detect the problem, the FAA said.

Independence Air ceased operations in January only 18 months after launching service as a low-cost carrier. The airline's last scheduled flights trickled into Independence's hub at Washington Dulles Airport on the evening of January 12th. The company shut down its web reservations and flight information system earlier in the evening. Roughly 2,700 employees will lose their jobs.

Alitalia looks set to face a withering week of wildcat strikes, as unions took aim at CEO Giancarlo Cimoli and his cost-cutting plan to rebuild Italy's largest airline. Union unrest forced Alitalia to cancel at least 121 flights on Sunday, the fourth consecutive day of industrial action that the company warned would likely get worse. Hardest hit were ground activities as workers - angry over being shifted into a service spin-off company - blocked inspections needed to get aircraft off the ground, unions said.

Delta Air Lines, the Official Airline of the High Museum of Art, is proud to be a lead corporate partner of "Louvre Atlanta," a three-year partnership between the High Museum of Art in Atlanta and the Musee du Louvre in Paris, with an exhibition series beginning October 2006. "Delta is thrilled to be part of this amazing series of art exhibitions that, for the first time ever, will bring internationally- renowned works of art to Atlanta so art lovers throughout the Southeast can experience and enjoy the masterpieces of the Louvre," said Lee Macenczak, Delta's chief customer service officer and a member of the High Museum board of directors. "As Atlanta's hometown airline, and an active and committed partner in cultural and community events, we are pleased to serve as a lead corporate partner of this unprecedented and remarkable partnership which will be of great interest to our customers and employees throughout the world." Throughout the three-year partnership, "Louvre Atlanta" will feature a total of nine exhibitions in the High's new Anne Cox Chambers wing, which will be devoted exclusively to "Louvre Atlanta". Masterpieces included in the first year central exhibition, "Kings as Collectors" include Raphael's "Portrait of Baldassare Castiglione" and Nicolas Poussin's "Et in Arcadia Ego."

Northwest Airlines Corp. must slash costs and cut debt to attract the investors it needs to finance $10 billion to $11 billion of new planes it plans to buy over the next decade, an industry specialist told a New York bankruptcy court. It was the fourth day of hearings devoted to the carriers request to reduce costs by tossing out contracts with its pilots and flight attendants. John Luth, chief executive of Seabury Group which is advising Northwest's bankruptcy restructuring, said reducing costs and debt would help the airline attain a higher credit rating, allowing it to borrow money less expensively. Northwest's fleet of aircraft is considered aged by industry standards. The fleet's craft are, on average, 18 years old, which can mean the carrier spends more on fuel costs as well as maintenance.