sky

China Southern to quit SkyTeam, strengthen American partnership

China Southern Airlines plans to depart the SkyTeam airline alliance, it said on Thursday, opening the potential for the carrier to become a member of the oneworld group alongside strategic partner American Airlines. Oneworld and SkyTeam are two of three global airline alliances that provide reciprocal benefits for passengers such as lounge usage and frequent flyer points and give airlines transfer passengers from partners in a boost to revenue. Star Alliance is the third. American spent $200m on a minority stake in China Southern last year with an eye to growing in the booming Chinese travel market, but the benefits of the partnership have been stalled in part by the Chinese carrier’s presence in rival alliance SkyTeam. China Southern said it will leave SkyTeam on Jan. 1 to develop its own strategy. It said it would strengthen its partnership with American, but did not specify any plans to join oneworld. “This news presents a great opportunity for us to continue to expand our relationship with the largest airline in China,” American Airlines said. The two companies launched a reciprocal codeshare agreement earlier this year.<br/>

Georgia House gives 2nd chance to $40M jet fuel tax break

The Georgia House voted Thursday to give a second chance to a $40m tax exemption on jet fuel that lawmakers defeated months earlier in a spat over gun rights with Delta. The tax break for airlines passed the House 141-18 on the third day of a special legislative otherwise focused on aid to the large swath of southern Georgia devastated by Hurricane Michael. The fuel tax got added to the agenda because Gov. Nathan Deal had salvaged it with an executive order over the summer. The law requires legislators to ratify that order now that they have been called back into session. Deal and other supporters say Georgia needs to exempt jet fuel from sales taxes for its airports — including busy Hartsfield-Jackson International Airport in Atlanta — to remain competitive with other states that have eliminated the tax. But Republican lawmakers in February cut the jet fuel exemption from a broader tax bill. That happened when Lt. Gov. Casey Cagle called on legislators to punish Delta for ended fare discounts to members of the National Rifle Association. The version passed Thursday by the House still must be approved by the Senate. "Let this be a symbolic measure that we are closing the door on a dark chapter," Turner said. "And as a legislature we are not going to punish an entire industry because we don't agree with one player's political points."<br/>