Delta pilots approve pay cut
Pilots at Delta Air Lines have approved a second round of pay cuts. The temporary agreement will cut pilot pay by 14% and save Delta $143 million a year. "Given the critical nature of our financial situation, this provides much needed financial relief," Delta Chief Executive Gerald Grinstein said. "We greatly appreciate the additional sacrifices Delta employees including our pilots are making to help save the company." Journal and Constitution (Atlanta) (free registration) (12/29), The Wall Street Journal (subscription required) (12/29), The Cincinnati Enquirer (12/29)

Continental to take back 69 regional jets
Continental Airlines will take back 69 regional jets operated by ExpressJet Holdings starting in 2007. Continental said ExpressJet's rates were too high. Continental is studying proposals by other operators. The New York Times (subscription required)/Associated Press (12/29), Airwise (12/29), American City Business Journals//Houston Business Journal (free registration) (12/28)

Air Canada emerges from bankruptcy with strong balance sheet
Air Canada posted profits for the first nine months of 2005 as many of its peers reported large losses. The airline plans to acquire new Embraer aircraft in 2006 and add more onboard amenities. CBC.ca (12/28)

US Airways plans to preserve Charlotte hub
US Airways Chief Executive Doug Parker said the airline will keep its hub and its fare structure in Charlotte largely intact. Parker is overseeing the merger of US Airways operations with America West's operations. He says the biggest challenge is merging the two carriers' cost structures. American City Business Journals (free registration) (12/26)

FLYi may cease operations Jan. 7
FLYi told employees it may stop flying Jan. 7 if it does not find a majority investor or a buyer. The company filed for bankruptcy protection last month. A spokesman said the airline is in a "number of ongoing discussions" and said the airline has not made a final decision. The Washington Post (free registration) (12/29), The Wall Street Journal/Dow Jones (subscription required) (12/28), Orlando Sentinel (Fla.) (free registration) (12/28)

Board declines to release UPS pilots from talks
The National Mediation Board decided not to release United Parcel Service and its pilots from mediated contract talks. The decision postpones the threat of a strike for several months. The two sides are at odds over pay and benefits. The Wall Street Journal (subscription required) (12/29)

Inside Aviation

Anti-missile system comes at high price for airlines
The U.S. government believes portable missiles could pose a threat to U.S. carriers. Northrop Grumman is developing a system to counter the missiles. Air Transport Association Executive Vice President John Meenan says the price of the system is too high for the airlines and notes it only confronts one aspect of the threat. PBS (12/27)

Airlines hope to slash GDS costs
Airlines are hoping to cut costs related to global distribution service companies. GDS costs amount to about 2.5% of an airline's revenue. Some airlines say they may not renew their GDS contracts if the companies do not lower their fees. Contracts with major airlines will expire in the middle of 2006. BusinessWeek (12/29)

Airlines cancel flights after Nassau radar fails
A radar system at Nassau International Airport failed during the busy holiday travel period. The incident hurt hotel business in the Bahamas and stranded hundreds of tourists. Major U.S. airlines canceled 26 flights. Airwise (12/28)