Airline Meltdown

(AP) - British Airways is in talks with Australia's Qantas Airways about a potential merger, the firm said today, sending its shares soaring as it fueled expectations of consolidation in the hard-hit aviation industry. Already pursuing a revenue-sharing deal with American Airlines and Spain's Iberia SA, BA said it’s exploring a "potential merger" with Qantas "via a dual-listed company structure." More »

(Newser) - With many consumers too concerned about their wallets to make pricey trips, airlines are, for the first time in memory, lowering prices before the holidays, the Chicago Tribune reports. The reversal of convention is allowing late buyers to scrounge tickets for as much as $200 less than travelers who locked in prices over the summer, when fares reflected much higher oil prices, the San Jose Mercury News adds. More »

(Newser) - There’s a spot of good news for travelers amid the barrage of dire economic reports: Those looking for a flight, cruise, or hotel stay may find surprisingly good deals. As financial woes keep many Americans grounded, the travel industry is forced to drop prices to fill space, the Los Angeles Times reports. For the industry, “it’s very bad,” says a consultant. More »

(Newser) - In the boom years of the last decade, cities across America broke ground on major airport expansions, from additional runways to new terminals. Now those projects are being completed—just as air travel has slowed and hundreds of planes are being grounded. Flights may be less congested, writes the New York Times , but travelers are paying for the new capacity through even higher fares. More »

(Newser) - The slumping economy may bring some good to the travel industry: Domestic airfare and hotel rates could fall next year as strapped individuals and companies think twice about globetrotting. A slash in oil prices, down to half of summer’s record high, has also brought airlines relief, Reuters reports. In its annual forecast, American Express sees declining demand as travel budgets become a “boardroom issue.” More »

(Newser) - As airlines struggle to stay competitive, scheduling changes mean that consumers will see fewer planes and higher fares, the Wall Street Journal reports. In the coming Thanksgiving season, US Airways is flying 40% fewer flights than a year ago. Delta and United have both reduced Thanksgiving flights by more than 20%. And thanks to more efficient scheduling programs, cheap off-peak flights will be harder to find. More »

(AP) - American Airlines is about to accelerate the trend of breaking the cost of a trip into an airfare plus many smaller fees. Starting next year, American plans to imitate the a la carte pricing structure pioneered by Air Canada, airline officials say. There are likely to be a few basic fare plans, and travelers can pick additional services—for a fee. More »

(Newser) - Alitalia,