British Airways is re-launching its UK regional airline, CitiExpress, as a budget carrier in an effort to improve profitability and regain ground lost to low-cost competitors. BA is reducing many fares by up to 40 percent as it seeks to regain ground lost to no-frills carriers in recent years. According to reports, Willie Walsh, the new British Airways chief executive, has told its loss-making subsidiary, CitiExpress, it must make a profit within two years or close. The tough timetable for a company expected to run up an operating deficit of £20 million in 2005 and 2006 was revealed as it outlined plans for a re-launch under a new banner, BA Connect.

Spirit Airlines is celebrating its new service to the Turks and Caicos Islands with an offer of only $9 tickets each way. Service to Providenciales starts on February 16, while the Wednesday/Sunday Grand Turk service will begin on February 19. “What a great way to celebrate our new service,” said Barry Biffle, chief marketing officer of Spirit Airlines. “We are delighted to share these super low fares as low as $9 each way with our friends in the Turks and Caicos Islands, as well as Floridians in Orlando, Tampa, and South Florida.”

Copa Airlines began this week its second frequency between Santiago de Chile and its Hub of the Americas in Panama City. “Passenger traffic growth between Chile and Panama has led to a second frequency between both countries. With this second frequency, we reaffirm our intention to offer the best flight alternatives to the main cities in the Americas, while offering our passengers convenient schedules and immediate connections through our Hub in Panama,” said Jorge Garcia, Commercial Vice-President of Copa Airlines.

European low-cost carriers and an airline organization are reacting to Tuesday´s ruling by the European Court of Justice that air passengers should be compensated if flights are delayed or cancelled. Germany´s low-cost carrier Air Berlin told German newspaper Die Welt newspaper it will take legal steps against the ruling.

For Southwest, traffic grew 15.1 percent to 4.99 billion revenue passenger miles, or one paying passenger flown one mile, from 4.34 billion in the same month a year ago. As per the information available, available seat miles increased to 7.38 billion, up 7 percent from 6.9 billion in the prior period. For the fourth quarter, revenue passenger miles jumped 15.3 percent to 15.14 billion, while available seat miles increased 7.6 percent to 21.75 billion. Southwest´s quarterly load factor rose to 69.6 percent from 65 percent year over year. The airline posted 60.22 billion revenue passenger miles in 2005, up from 53.42 billion in 2004.

Spain´s Iberia has indicated that it plans to work on measures to cut its €130 million annual payments to GDS ticket reservation companies. According to AFX News, the spokeswoman said that cutting its payments to GDS is part of the flag carrier´s 2006-2008 strategic plan which aims at a wide range of cost-cutting measures with all suppliers.