Thailand's main airport operator is offering incentives and discounts to help airlines and airport businesses that have been hit by domestic political turmoil. Airports of Thailand says airlines operating at Suvarnabhumi and Don Muang airports will enjoy a 15% discount on landing fees from April to December, up from the 10% discount given before that. Aircraft parking fees will be cut by 50%, compared with a 20% rebate earlier. Cash-strapped airlines will also be granted payment extensions, if necessary.

Air France-KLM has entered into an interline deal with Jetstar, its first such tie-up with a low-cost carrier, enhancing its access to the Asia-Pacific travel market. Jetstar, an offshoot of Australia's Qantas with operating bases in Australia, Singapore and Vietnam, hopes that the partnership will boost its presence in Europe. The alliance will make travel more convenient for passengers of both carriers and offer them even more flight options, said Marnix Fruitema, Air France-KLM senior VP, Asia-Pacific.

The Chinese government has deregulated pricing of domestic business and first-class air fares, abolishing a rule that they must be set at 1.5 and 1.3 times the price of economy tickets, respectively. The change opens the way for China Southern to widely introduce lie-flat seats that it has tried in an Airbus A330. The carrier could not get permission to charge the price it wanted for that service level, three times the economy fare, a company executive says.