Australian airlines are starting to fly to New Zealand again after a volcanic ash cloud from Chile grounded hundreds of flights.

Airlines started flying a backlog of thousands of stranded passengers to and from Australia’s second-largest city today after an ash cloud from a Chilean volcano began to clear.

Thousands of passengers in Australia and New Zealand were affected when airlines suspended flights today as an ash cloud from an erupting volcano in southern Chile spread, threatening to damage engines.

Qantas is to cut capacity growth, retire aircraft early and shed managers in response to natural disasters in key destinations and rising fuel costs that Australia’s national carrier says poses its biggest threat since the global financial crisis.

British Airways and Qantas today said they had failed to reach agreement on a potential merger.

A giant new airline could be formed following news that British Airways is in talks about a possible merger with Australian carrier Qantas.

AUSTRALIA’s state airline Qantas has appointed 42-year-old Dubliner, Alan Joyce as its chief executive.

Qantas Airways Ltd, Australia’s flagship carrier, announced today it was slashing its work force by 1,500 people worldwide and abandoning plans to hire 1,200 more as it tries to deal with skyrocketing fuel costs.

Dozens of new airlines have been popping up across Asia to meet the industry’s booming demand, but a string of deadly accidents has raised fresh concerns about safety – from pilot shortages to the quality of budget carriers.

AER LINGUS needs up €1.5 billion if it is to expand its long-haul services, the airline’s chairman said yesterday.

Qantas is to launch a new low-cost airline based in Singapore by the end of the year.