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Virgin considers Indian domestic service (AP)

The U.K.'s Virgin Group is seeking permission from the Indian government to launch a domestic airline in the country, its chairman said Monday.

"As a foreigner I'm not allowed to own a domestic airline ... I'm still lobbying to get permission to launch a domestic airline in India," Richard Branson told reporters on the sidelines of a business meeting on a visit with British Prime Minister Gordon Brown aimed at strengthening trade and economic ties with the emerging economic power.

Cape Town to Dubai with Emirates

Emirates will begin operating direct daily flights from Dubai to Cape Town on 30 March 2008.

The move follows the Dubai-based airline's recent introduction of third daily services to Johannesburg and brings the carrier's total number of weekly flights to South Africa to 28.

Emirates will operate its Airbus A330-200 in a three class configuration of 12 First, 42 Business and 183 Economy Class seats. From 1st October the aircraft type will be revised to the larger capacity Boeing 777-200 offering 12 First, 42 Business and 236 Economy Class seats.

Northwest Airlines and Delta discuss merger (AP)

Northwest Airlines has entered into formal merger discussions with Delta Air Lines and will look for another partner if Delta tries to merge with United Airlines instead, a U.S. lawmaker said in a newspaper interview.

Jim Oberstar, chairman of the Transportation and Infrastructure Committee in the House of Representatives, confirmed the talks in an interview with the Star Tribune, saying he met with two Northwest executives Tuesday in his Washington office.

The Minnesota Democrat said Ben Hirst, Northwest's senior vice president of corporate affairs and administration, and Andrea Fischer Newman, Northwest's senior vice president of government affairs, confirmed that Delta is considering both Northwest and United as options for a merger.

American Airlines to fly Dallas-to-San Salvador (AP)

American Airlines will begin flights between Dallas-Fort Worth International Airport in Texas and San Salvador, El Salvador, on April 7. American, the largest U.S. carrier, plans to operate four flights per week on the route with 148-seat Boeing 737s. The airline currently flies to San Salvador from Miami and Los Angeles.

Virgin Atlantic to test biofuel (AP)

Virgin Atlantic said Monday it would fly one of its Boeing 747 planes on biofuel during a demonstration flight from London to Amsterdam next month.

Virgin Atlantic Chairman Richard Branson said the test flight, which he called the first of its kind, would yield crucial information on how to reduce aviation's carbon footprint.

Branson launched an alternative fuels division at Virgin in 2006, pledging the profits from his airline and trains for 10 years.

In the middle of 2007, Virgin trains began a six-month trial of a passenger train using biofuel, an experiment the company said could lead it to switch its entire fleet over to a mix of diesel and biofuel.

Warning for Chinese airlines (AP)

China ordered domestic airlines to reduce delays and improve service for the Beijing Olympics in August or face penalties.

Airlines that fail to improve performance could be barred from expanding services for two years, among other penalties introduced by aviation regulators at a meeting Friday, the state-run China Daily reported Saturday.

Beijing's overcrowded airport, the world's ninth busiest, will open a new $4.6 billion terminal and runway this year to cope with the demand.

China's airlines and airports have struggled with soaring demand for passenger and cargo services amid the country's economic boom. Despite increases in airline fleets and new airports, air traffic corridors have become clogged around major cities and hubs. E-mail to a friend