Pilots at Continental Airlines voted to increase the size of a fund designed to protect their interests in case of a future merger. Airline consolidation rumors have intensified as Delta Air Lines and Northwest confirmed they were holding merger talks, although steps toward a deal appear to have halted over a dispute about how to combine pilot seniority lists.
SAS Scandinavian Airlines will buy 27 jets and turboprops with options for up to 24 despite the airline's concerns over several landing gear failures on Bombardier's Q400 turboprops. SAS banished Q400s from its mainline fleet last fall after the third landing gear incident in its fleet in six weeks. SAS will buy CRJ900s and Q400s with a value of $883 million, and that could grow to $1.75 billion if the airline exercises all options.
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