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Qantas hopes to capitalise on its international competitors pulling capacity out of Australia for the first time in almost a decade to make up lost ground in the second half of the year after an oil price spike blew a hole in its earnings. The airline's international operations bore the brunt of a A$416m fuel bill hike in the December half, driving that division's earnings down by $134m to $90m. CE Alan Joyce said he was confident the airline would completely recover the higher fuel costs in the second half as oil prices eased, the domestic market remained stable and international competition softened. “We think if oil prices stay where they are this is probably the standard going forward, but irrespective of that we’re coping with what we can control." he said. <br/>

American Airlines has just banished two of the most annoying aspects of flying out of Los Angeles International: traffic gridlock and the long security screening line. But it won't be cheap. In the latest effort by the airline industry to cater to well-heeled travellers, the world's largest air carrier has launched a super VIP package that includes a helicopter ride to LAX and security clearance at a cushy private lounge, with a Cadillac sedan ready to zip you to your plane. American is offering a similar deal in New York. All that pampering can add more than US$1700 to the price of an airline ticket. The package, known as Five Star Service, is part of an arms race among the nation's biggest carriers to win over business travellers and wealthy leisure jet-setters who generate the lion's share of airline revenues. <br/>