Average domestic air fares in the fourth quarter of 2007 were up 4 percent from the prior year, according to the U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS).

On May 6, Iberia will launch a new luggage policy designed to reduce both complications and costs for passengers. On domestic and European routes, the free luggage allowance for Tourist Class passengers will be raised from 20 to 23 kg, while Business Class passengers will get an allowance of 30 kg.

Air Berlin has continued to increase the number of passengers transported. In March 2008, a total of 2,175,427 passengers traveled on Air Berlin (including its subsidiaries LTU and Belair, and the airline company Walter).

The US Federal Aviation Administration (FAA) will tighten oversight of airline safety after aircraft groundings at big carriers, but will not absolve airlines of responsibility for monitoring their own safety, the FAA’s senior official said last week.

The long awaited merger of Delta Air Lines and Northwest Airlines has been announced in an all-stock deal valued at $17.7 billion. The airlines said the deal would take as long as a year to be finalized, including regulatory approvals. The new airline will be called Delta.

The U.S. Department of Transportation (DOT) proposed to allow United Air Lines to begin new flights between Los Angeles and San Jose del Cabo, Mexico. The service was made available when Frontier Airlines notified the Department that it would cease flying that route after April 13.