Alaska Air Group and Virgin America pleaded their case for their US$2.6b merger to top Justice Department officials last week, according to people familiar with the matter, an indication that negotiations are in their final stages over whether the govt allows the deal to proceed. The airlines met with antitrust division chief Renata Hesse and other officials conducting the review to address govt concerns that the combination could hurt competition, said one of the people. Such top-level meetings usually signal that the antitrust division has worries about a merger that could lead to a lawsuit to block it. Time is running short for the govt to act. The airlines have agreed not to close until Sept 30, effectively setting a deadline for the Justice Department to give a nod to the deal or seek to block it. <br/>
unaligned
EasyJet is close to taking a stake in German airline TUIFly in order to secure flying rights in Europe even after Britain leaves the EU, German publication Manager Magazin reported Thursday, citing sources. EasyJet could be left without the rights to operate inner-European flights, which analysts estimate account for around one third of its business, should Britain leave the EU without negotiating access to the common EU aviation area. EasyJet CE Carolyn McCall has therefore been looking at ways of obtaining the necessary licences to continue to operate as an EU carrier. TUI Group, which owns TUIFly, and EasyJet declined immediate comment. <br/>
Leaders of Southwest Airlines' pilots union agreed to send a tentative contract agreement to its members, clearing the way for a vote on the deal that would boost pay and retirement benefits. The Southwest Airlines Pilots’ Association board voted 21-2 to authorise balloting, union president Jon Weaks said Wednesday. Southwest wants to secure new contracts with pilots, flight attendants and mechanics in part to reassure investors concerned about rising labour costs. Leaders of the flight attendants union are reviewing their tentative agreement this week while talks continue with mechanics. The new pilots contract, which would extend through Aug 31, 2020, provides a 15% pay increase Oct 1 to cover the years the pact was being negotiated and 3% annual increases going forward. <br/>