The $1.7 billion losses suffered by the Swissair Group are the worst in the 70-year history of the company. To help the tough fight back to profitability, the Group's Swissotel chain is to be sold, as are half of the real estate assets of Avireal. Former Chief Executive Philippe Bruggisser, who was fired in January, was held responsible for the failed strategy of buying into several second- and third-level airlines in an attempt to create a Swissair-centered alliance.

British Airways (BA) plans to acquire British Regional Airlines (BRAL) and Manx Airlines in a $113 million deal that gives BA control of two thirds of the U.K.'s domestic airline market. BA plans to merge BRAL and Manx operations into those of Brymon Airways, another BA unit. The three respective route networks are complementary, BA says, and no services will be lost. Isle of Man services will continue to operate in Manx colors, according to BA.

Copenhagen Airport has been selected as the preferred bidder for a partnership with Newcastle Airport in the northeast of England. If all goes well Copenhagen Airport will buy a minority stake in the airport, and sign a technical services agreement. Local airport interests will maintain majority control. The other bidder in the short list of two was a consortium of Altera Partners, Singapore Changi Airport Enterprises (SCAE) and Flughafen Zurich Airport Group.