Airline News.

Airlines do not expect more luggage problems this summer. Some lawmakers expect airlines to mishandle more bags this summer as the number of travelers increases, according to testimony at a hearing this week. Air Transport Association Executive Vice President John Meenan said he doesn't think the problem will worsen over the summer. The rate of lost bags has declined slightly through March this year, according to Department of Transportation data. May 5, 2006

U.S. commercial pilots seek work overseas. Some pilots who once flew for U.S. airlines have landed jobs in other parts of the world. U.S. airlines have laid off thousands of pilots since the 2001 terror attacks, but many overseas airlines are expanding. May 5, 2006

European Union and Georgia signed an agreement yesterday allowing European carriers to have "nondiscriminatory access" to Georgia and to fly between it and any EU member country. It is the fourth "horizontal" agreement signed by the EU, the others being with Ukraine, Moldova and Chile. May 4, 2006

New Zealand and India reached a new air services agreement allowing daily flights between Mumbai and Auckland with codesharing onward to other cities in each country. Services can be nonstop or via Australia or Singapore. May 4, 2006

Travelers face full planes, but fuel stings carriers. Strong demand and capacity cuts are resulting in packed airplanes. Occupancy percentages are among the highest in the industry's history, experts say. The high cost of oil continues to hurt airlines and push up expenses, said Air Transport Association Chief Economist John Heimlich. May 4, 2006

Travelers focus on price, not brand, experts say. Airline passengers are more concerned about the price of their ticket than brand loyalty. Changes to frequent-flier programs have encouraged travelers to shop around for tickets, experts say. May 4, 2006

U.S. delays new foreign-ownership rules. The U.S. will delay new rules that would give foreign owners more control over the management of U.S. carriers. As a result, the EU says it will not approve an "open skies" agreement that would remove restrictions on air travel between the U.S. and EU member countries. May 3, 2006

Summer travelers should prepare for crowded planes. Travelers should expect crowded planes this summer. Airlines have scaled back capacity and boosted prices to cover soaring jet fuel costs. "There's been an acceleration of capacity-cutting with high fuel prices," Air Transport Association Chief Economist John Heimlich said. The airline industry will pay $199 million in additional annual fuel costs every time the price of a gallon of jet fuel increases by a penny. May 2, 2006

Soaring fuel spurs businesses to scale back travel. Many businesses are scaling back travel to avoid soaring fuel prices, the Washington Post's Keith L. Alexander writes. Some say they will adjust their 2007 travel budgets if airline tickets stay at current levels. May 2, 2006

Obscure coach fares put fliers in first class. An obscure category of coach fares guarantees fliers a seat in first class. The discounted fares cost hundreds less than a full-price first-class seat. Airlines do not reveal how many fares are available. May 2, 2006

Record travelers expected this summer. More people are expected to travel this summer despite higher prices for airline tickets, hotel rooms and rental cars. AAA Colorado expects summer travel to climb up to 10% from 2005. May 1, 2006

Some summer travelers will fly to avoid high gas prices: More summer travelers will fly instead of drive this summer to avoid high gas prices. Summer travelers are considering flying to summer vacation destinations instead of driving. For some families, high gasoline prices make flying more cost-efficient."We don't think these high gas prices are going to stop people from going on vacation," said Mantill Williams, AAA's spokesman. "But I have to say we are heading into uncharted territory."

May 1, 2006

Centre for Asia Pacific Aviation Executive Chairman Peter Harbison said the volatile price of fuel is emerging as a serious threat to consumer demand for travel. Speaking at the opening of the second annual Middle East and Indian Subcontinent Aviation & Tourism Investor Summit in Mumbai, he warned, "The growing oil price crisis sees the express train of demand growth coming into a lake of treacle as consumer demand slows while fares rise. The express train is not yet stopped, but the slowing becomes unavoidable." This "treacle effect" is the biggest short-term threat to worldwide airline profitability, he said, adding that "continued growth in India's aviation sector faces potential double jeopardy" because of inadequate airport infrastructure. He said the solution must come from Indian federal and state governments. May 1, 2006