Serbia's Jat Airways said its planes were grounded after it was unable to reach agreement on a contract with its airplane service company Jat Tehnika. Jat Airways Managing Director Srdan Radovanovic said flights were canceled indefinitely.

By Caroline Brothers British Airways and Iberia announced a merger plan Tuesday in what would be the first major alliance between European flag carriers since the recent surge in oil prices darkened the outlook for the aviation sector.

Text of report in English by Serbian pro-western Belgrade-based Radio B92 website, on 21 July Belgrade, 21 July: The government today approved the privatization of JAT Airways, a statement from the cabinet's press office said.

Etihad Airways and Jet Airways have announced a new codeshare agreement and a network-wide reciprocal frequent flyer partnership, effective July 1, 2008, subject to regulatory approval.

Emirati cadet pilots complete first solo flight Etihad Airways' inaugural class of Emirati cadet pilots has achieved the first major milestone in their flying careers, the completion of a solo flight.