Delta Air and Aeromexico can set prices and coordinate schedules for their US-Mexico flights, but they must free up certain airport slots to bolster competition, the US DoT tentatively ruled Friday. The decision paves the way for the two companies to dominate the second-busiest market for travel to or from the US. It comes after the US airline industry has consolidated, with carriers operating more efficient itineraries and having more power to raise fares on some routes. Opponents of the tentative ruling, which lets the airlines cooperate with immunity from US antitrust law, have until Nov. 30 to raise objections. The department said the decision benefits the public because Delta and Grupo Aeromexico can plan shorter layovers, increase flights and offer more destinations. The US government has approved similar arrangements for many other airlines. However, the department has proposed that the carriers divest 24 takeoff and landing slots in Mexico City and six at New York's John F. Kennedy International Airport to give budget airlines room to add flights.<br/>
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British Airways-owner IAG stuck to its main long-term earnings and margin growth targets but scaled back its plans to expand capacity in a sign of the tough environment in which airlines are operating. IAG, which also owns the Iberia, Aer Lingus and Vueling airlines, confirmed forecasts for average annual earnings per share growth of at least 12% and an operating profit margin of 12 to 15% for the 2016-2020 period. Those are targets it first set out this time last year. The group did, however, trim its forecast for core earnings, saying it expected this to average E5.3b per year, down from the E5.6b it had previously said. IAG has already cautioned that currency effects would drag on its earnings this year after the pound weakened 14% against the euro and 16% since the dollar since Britain voted to leave the EU in June. IAG lowered its 2016-2020 capacity growth plans, measured in available seat kilometres, to around 3% a year, compared to the 3-4% previously targeted, and said it would invest less on capital expenditure each year. The airline group also said it was focused on shareholder cash returns, highlighting its strong outlook for equity free cash flow targets and its strong balance sheet.<br/>
Kenya Airways will seek new investors by the second quarter of next year as part of its turnround strategy that will also aim to lower the debt load of the airline, senior executives said on Friday. <br/>Michael Joseph, who was appointed chairman last month following a staff rebellion over the perceived slow pace of recovery after four years of losses, admitted that reviving the carrier would be “difficult”. But he insisted that major shareholders, including Air France-KLM and the Kenyan government, “will do whatever is necessary both financially and in support to turn this airline around”. Joseph also said that Mbuvi Ngunze, chief executive, was “vital” to the turnround strategy and that the unions were no longer insisting that he resign. “They understand the situation we are in and have given us the necessary time to go through this restructuring before we do anything else,” he told his first press conference since joining Kenya Airways from Safaricom, where he had been chief executive of the dominant mobile phone operator. Ngunze said that Kenya Airways was “running two parallel processes” to turn round its finances. “[These are] a capital optimisation programme which is around improving liquidity and looking to reduce our overall debt and talking to people who are potential investors for the future,” he said. “That means that nobody will put money this side of the capital optimisation because any dollar you put in right now will be immediately diluted.” <br/>