Tiger Airways subsidiary grounded

Tiger Airways subsidiary grounded

CANBERRA, Australia

An air-safety watchdog on Saturday grounded all Australian domestic flights of a Tiger Airways subsidiary for the next week, saying the budget airline twice flew under the minimum allowed altitude. About 35,000 passengers are affected, and more could follow if the airline fails to quickly address regulators’ concerns.

The Civil Aviation Safety Authority announced that Tiger Airways Australia’s entire domestic fleet of 10 airliners was grounded for five business days because continuing flights would pose a serious and imminent risk to air safety.

Rivals Virgin Australia and Jetstar, a budget subsidiary of Australian flagship carrier Qantas Airways, announced Saturday they would fly additional services to accommodate some of the stranded passengers.

The airline, which entered the Australian aviation market three years ago, alerted passengers in a statement that services will remain suspended until Saturday. Fares will be refunded.

Direct Brands plans $215M Borders bid

DETROIT

Direct Brands plans a $215 million opening bid for Borders Group, the nation’s second-largest bookseller, in a bankruptcy-court auction.

Once sold, likely later this month, the Ann Arbor, Mich.-based bookseller will morph into something different, said turnaround expert Jim McTevia of Bingham Farms, Mich.-based McTevia & Associates.

The bookseller said late Thursday it has an asset-purchase agreement with Direct Brands, a company of Phoenix-based Najafi Cos., a private-equity firm with $1.1 billion in assets.

Direct Brands, which includes Book-of-the-Month Club, Doubleday Book Clubs and Columbia House, was acquired by Najafi Cos. in 2008.

It plans to file a tentative purchase agreement before a court hearing July 21.

Airports losing cart-rental revenue

LOS ANGELES

The rolling revolution in suitcases is idling those airline-terminal luggage carts — costing airports and cart-rental companies millions of dollars in lost revenue.

The demand for airport luggage carts, which has been declining steadily with the growing popularity of wheeled luggage, has dropped further now that airline baggage fees are forcing passengers to travel lighter.

At Los Angeles International Airport, cart rentals once provided at least $2.75 million in annual revenue. Now, the airport is losing nearly $1 million a year under a deal that obligates it to provide free carts to foreign travelers.

The same scenario is playing out across the country. Airports in New York; Tampa, Fla.; Seattle; Phoenix and Las Vegas are among those saying cart concessions either aren’t the cash cows they used to be or have turned from a source of income to an expense.

From wire reports