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Zagat: Continental’s premium-class service is No. 1

Premium-class service on Continental Airlines was ranked No. 1 for the third year in a row by frequent fliers surveyed by Zagat.com.

The airline is part of Chicago-based United Continental Holdings Inc. since its Oct. 1 merger with United Airlines.

Runners-up on premium-class service among major airlines were American, Delta, United and AirTran, in that order. Get the full story »

Sources: Airbus, Boeing mull further output hikes

Airbus and Boeing have begun sounding out suppliers on their ability to cope with further production increases of their most popular jets, taking combined output well above 80 a month within four to five years.

Three senior industry sources told Reuters consultations had started on a historic upswing which could see Airbus producing as many as 44 A320 single-aisle planes by 2014 or 2015 and its rival simultaneously rising to as many as 42 737s a month. Get the full story »

Electrical system fix to delay 787 a seventh time

Boeing Co. said late Wednesday that debris was likely to have caused an onboard electrical fire on a test flight of 787 Dreamliner this month.

The company said the fire began as a short circuit or an electrical arc in the P100 power distribution panel and was most likely caused by “foreign debris.” Get the full story »

United considers ‘tulip’ livery for anniversary 757

United Airlines ignored frequent-flier pleas to “save the tulip” this summer as it rolled out a new brand and paint scheme. But the Saul Bass-designed U could live on, at least on one of United’s Boeing 757 jets.

To celebrate its 85th anniversary, United plans to repaint one of its jets in a classic  scheme, known as the livery in the airline business. Among the options: The “tulip,” paired with 1970s-style orange, red and blue stripes, a look that adorned United’s jets through the 1990s. Get the full story »

Pentagon: ‘Clerical error’ won’t hurt tanker bid

Bloomberg | Chicago-based Boeing Co. and European Aeronautic, Defense and Space Co. shouldn’t see any significant fallout from a “clerical error” releasing some data on their bids for a $35 billion aerial tanker program, the Defense Department said. The Air Force disclosed Nov. 19 that the service mistakenly provided Boeing and EADS with “a limited amount” of data on the offers that are now under government review.

Boeing to buy aircraft parts supplier

Boeing Co. said Monday that it will buy Summit Aeronautics Group, which makes titanium and other hard metal structures for commercial and military aircraft.

Boeing did not disclose the terms of the deal, which is expected to close in the fourth quarter. Get the full story »

Air Force data misstep could delay tanker contract again

The Air Force has again stumbled in the lucrative but long-drawn-out competition for air refueling tankers for which Airbus and Boeing are contending.

The Air Force told members of Congress on Friday that about two weeks ago it accidentally provided Chicago-based Boeing with detailed data on the Airbus bid, and vice versa. Get the full story »

Analysts see holiday airfares rising, no late deals

Air fares are up dramatically this holiday season — so there’s no point in waiting for last-minute deals because they’re not going to happen, experts say.

“You have a lot more pent-up travel demand chasing fewer seats,” said Rick Seaney, chief executive of Farecompare.com. “There’s just no incentive for airlines to lower fares.” Get the full story »

Boeing 787 delays give edge to rival Airbus

Aircraft manufacturer Boeing Co.’s delays in readying its new 787 Dreamliner jumbo jet for delivery have been giving competitors an advantage, an executive for rival Airbus said Thursday.

“It’s true that all the delays with the 787 have helped us,” Airbus Senior Vice President for Latin America Rafael Alonso told reporters on the sidelines of an airline forum, noting the Airbus A330 as the main beneficiary. “In the case of the 787, we think their problems aren’t resolved yet, we don’t know how it’s going to continue developing.” Get the full story »

New 787 delay already factored into Boeing stock

A seventh delay for the long-awaited Boeing Co 787 Dreamliner is all but assured, and the negative sentiment is priced into shares, analysts said Thursday.

Shares of Boeing, a component of the Dow Jones Industrial Average, were up 3.4 percent Thursday — partly erasing losses since an electrical fire last week forced it to halt Dreamliner test flights — but the stock was still down more than 6 percent since the Nov. 9 incident. Get the full story »

Flight attendants clear Southwest to fly bigger jets

Bloomberg News | A vote to approve contract changes Thursday by Southwest flight attendants has cleared the way for the airline to start flying larger737  jets on popular routes.

FAA to require cockpit window checks on 747s

The U.S. Federal Aviation Administration plans to add Boeing Co.’s  widely used 747 to the list of airplanes that must have their cockpit windows inspected or replaced because of the danger of an electrical fire, the Associated Press reported Thursday.

Get the full story »

Air France negotiating with Boeing about aircraft

Franco-Dutch airline Air France-KLM said Wednesday it expects to place an order for about 100 new wide-bodied aircraft soon as it anticipates its capacity needs for the middle of this decade and beyond.

The airline is in negotiations with Boeing Co. and its European rival Airbus, and the talks should be completed in the coming weeks or months, Chief Financial Officer Philippe Calavia said on the sidelines of a press conference.

American Airlines to offer happy hour on flights

American Airlines will be hosting happy hour on certain flights during the month of December.

The company said Wednesday it will be selling cocktails, beer and wine for $5 on domestic, Canada, Caribbean and Mexico flights scheduled to depart between 5 p.m. and 5:59 p.m. The $5 price represents a discount of $1 on beer and $2 on liquor and wine. Passengers on American Airlines, American Eagle and AmericanConnection flights can take advantage of the promotion, which lasts the duration of the flight.

There was no mention of peanuts. Get the full story »

Morgan Stanley: Boeing may delay 787 to 2012

From Bloomberg | Boeing Co. may push back the 787 Dreamliner’s entry into service for the seventh time, adding as much as a year to the delay for the composite-plastic jet, Morgan Stanley said.