Lufthansa

German airline Lufthansa said Sunday that it was negotiating with Swiss International Air Lines about a possible takeover of the money-losing carrier. Lufthansa issued a statement saying the companies had agreed on a plan to integrate Swiss into its operations. The German carrier said it would maintain Swiss' brand name as well as its "infrastructure" in Switzerland.

Taking Web surfing to new heights, passengers aboard Lufthansa jumbo jets will soon be able to flip open their laptops and browse the Internet, becoming the first air travelers to have a direct network connection from the sky. In a boost to Boeing Co., which developed the computer system at considerable cost, Lufthansa will begin offering the high-speed Internet service in late April or early May on flights between Germany and the U.S.

Financially troubled Swiss International Air Lines Ltd. is holding talks with rivals about closer ties that include a possible merger, a spokesman said. The "independence of Swiss is not the first priority, and we have to prepare ourselves for other forms of cooperation," said Jean-Claude Donzel, a spokesman for the Basel, Switzerland-based airline.

German airline Lufthansa is closing its Los Angeles reservation office, effective Oct. 31. An airline spokeswoman could not say how many employees would be let go. The company plans to shift operations to a center in Peterborough, Canada, to cut costs, she said. The Los Angeles call center is one of nine Lufthansa offices around the world operated by the carrier's wholly owned subsidiary, Global Telesales, the spokeswoman said. Global Telesales representatives could not be reached for comment.

Lufthansa averted more damaging strikes by sealing a pay deal with its disgruntled pilots. But the contract could bruise the German company's finances and drew venom from other union leaders who say the pilots got too much. The three-year, three-month pact, which includes a raise of 28.7% in the first year, ends a dispute that proved an embarrassment and financial liability to Europe's second-biggest airline. Pilots staged two 24-hour strikes in May, costing the company more than $23 million.

In a bad omen for a peak vacation season just getting started, Lufthansa pilots staged a 24-hour strike Thursday that left 65,000 passengers on the ground and cost Europe's second-largest airline at least $23 million. The second walkout in a week by the union representing the German national carrier's 4,200 pilots ratcheted up the animosity level on both sides.

Lufthansa Technik AG has acquired a controlling interest in Hawker Pacific Aerospace in Sun Valley, the companies announced. LHT, a wholly owned subsidiary of the German airline Lufthansa, bought 40% of Hawker Pacific's common stock from the shareholders of Unique Investment Corp. LHT said it could increase its interest to 60% by exchanging convertible stock it has purchased from another private investor group for a $9.

Lufthansa airline briefly grounded 26 Boeing 747-400 long-haul aircraft for safety inspections and repairs Tuesday after discovering cracks in lines that carry firefighting agents to the turbine engines. The discovery prompted the Federal Aviation Administration in Washington to announce plans for similar inspections on Boeing 747s in the United States. Spokesman Eliot Brenner said the order would probably allow the airlines time to do the work rather than requiring immediate action.

UAL Corp.'s United Airlines and its alliance partner Lufthansa will pay a combined $4,000 in civil penalties to settle a case in which a disabled passenger was prevented from boarding a flight, the government said Wednesday. The Transportation Department order marks the first time a U.S. carrier has been found in violation of laws protecting the disabled because of the actions of a foreign partner.

American Airlines and British Airways joined Monday with three other carriers in a marketing partnership that could one day grow to rival the industry's top flight-sharing alliance, anchored by United Airlines and Lufthansa. The latest super-alliance was launched as American and British Airways continue their fight to gain regulatory approval for a separate deal that would give them U.S. antitrust immunity to set prices on transatlantic routes.