Air Lease Corp. is in talks with Boeing about the re-engining plan for the 737NG, but has questions about whether the aircraft can be competitive with the rival Airbus A320NEO (new engine option).

Brazil’s finance ministry has granted its approval of Grupo TAM’s proposed merger with Chile’s LAN Airlines. The backing from the Treasury Department’s Secretaria de Acompanhamento Economico, while noting there are overlaps on three passenger and 10 cargo routes, says the merger should be approved without restrictions because the airline industry is sufficiently competitive to assure the airlines will not dominate the sector.

Canada and Costa Rica have tentatively approved an open skies accord to replace a bilateral air services agreement from 1996. The deal, which must still be ratified by both countries, follows open skies agreements Canada has signed with Brazil and Mexico (Aviation Daily, Aug. 11).

Australia’s Strategic Airlines plans to build on its new Hawaii routes by linking to mainland U.S. destinations, challenging the established players in the lucrative transpacific market. “Ultimately we are planning to add connections to the U.S. mainland and beyond,” Strategic Chief Commercial Officer Damien Vasta tells Aviation Week following the announcement of flights from Melbourne and Brisbane to Honolulu. Vasta has previously signaled that the beyond-Hawaii links could be achieved through a code-share or interline agreement.

Jay Pierce, chairman of Continental Airlines’ Air Line Pilots Association chapter, is applauding moves to implement a new fatigue risk management system for the work group. The lack of a fatigue plan has for some time been a major concern for Pierce, and he again raised the issue late last month when United Continental Holdings complained about the cancellation of Continental Boeing 737 services at its Newark Liberty International hub because of an apparent sick-out (Aviation Daily, July 29).

Australia’s Tiger Airways is preparing to resume flying on a second route following the lifting of the carrier’s operating suspension last week. Tiger is restoring its Melbourne-Brisbane route beginning Aug. 18 after reintroducing its Sydney-Melbourne service on Aug. 12. The carrier is “resuming Australian domestic services gradually,” and regulators are only allowing it 18 sectors per day during August.

Latvian airline Air Baltic continues to grow traffic in spite of a long-standing dispute among its shareholders. The airline saw traffic increase by 7% in the first seven months of the year. In the same period, the load factor improved by six points to 73%, albeit lower than industry average.

US Airways is citing the Justice Department’s investigation into possible antitrust violations by global distribution system providers as one of many reasons why the airline’s antitrust lawsuit against Sabre should be allowed to proceed.