Brazilian airline VARIG will no longer be a member of Star Alliance as of January 31. The decision was prompted by the current restructuring of the airline in which “old” VARIG continued to be a Star Alliance member, operating a reduced flight schedule on behalf of a new company, VRG.

Air Jamaica set its eastern Caribbean expansion plan into motion January 10 with the launch daily nonstop service from New York (Kennedy) to Barbados with onward service to St. Lucia four days a week (Mondays, Wednesdays, Thursdays and Sundays) and Grenada three days a week (Tuesdays, Fridays and Saturdays).

Malaysian domestic airline FlyAsianXpress (FAX) and low-cost airline AirAsia have shared plans of launching a low-cost long-haul service, AirAsia X in July this year. The proposed airline will fly to destinations in India, China and Europe.

The U.S. government has ruled against Richard Branson’s startup airline Virgin America claiming the company must change its ownership and corporate structure before it can receive an operating certificate.

Iberia has begun the new year with the launch of two new destinations –Algiers and Bucharest. Regular flights between Madrid and the Algerian capital teed off on January 7, in response to growing demand from Spanish businesses and Algerian residents in Spain.

Air France-KLM is mulling the possibility of constituting a new company with other airlines in SkyTeam to present a joint offer for ailing Italian airline Alitalia SpA, Finanza & Mercati newspaper reported, not citing sources.