Kenya Airways Flight Makes Emergency Landing

A Kenya Airways plane with 56 passengers on board made an emergency landing in the Sudanese capital, Khartoum, after an engine caught fire.

The Cairo-bound Boeing 737-700 took off from Khartoum after a scheduled stopover following a flight from Nairobi. But it had to return to the Sudanese capital after 20 minutes.

Nobody was hurt, but the incident on Tuesday night left passengers stranded in a country difficult for travel because credit cards do not work in Sudan due to US trade sanctions.

"An engine caught fire and the plane suddenly lost much altitude. The pilot made a sharp turn and returned to Khartoum," said Souhair Mohamed Hawala, an Egyptian passenger. "There was panic on board. People were crying or praying."

Other passengers showed what they said were pictures from the damaged wing and engine of the plane.

A Kenya Airways official said the plane had returned with an unspecified "engine problem" and needed to be repaired in Sudan. "We don't know the cause yet," he said, adding passengers would be booked on the airline's next available flight out of Sudan.

Jet Airways Front-Runner For Etihad Investment

India's Jet Airways is the front-runner for an investment by Gulf carrier Etihad Airways, a senior Indian government source told reporters on Wednesday, adding a deal was likely in 10 days.

Etihad, seeking to widen operations in India and other Asian markets, is in the final stages of talks to buy part of either Jet Airways or grounded rival Kingfisher Airlines, an Indian government official had said on December 17.

US Clears Way For Wider In-Flight Internet

The US Federal Communications Commission has cleared the way for wider adoption of in-flight Internet services, aiming to cut by 50 percent the time needed for regulatory approval.

Newly adopted rules should boost competition in this part of the US mobile telecommunications market and promote "the widespread availability of Internet access to aircraft passengers," the FCC said in a statement.

Since 2001, the commission has cleared companies on an ad hoc basis to market in-flight broadband services via satellite.

Under a newly adopted framework, the licensing procedures will be simpler, the commission said.

Airlines will be able to test systems that meet the commission's standards, establish that they do not interfere with aircraft systems and then get the approval of the Federal Aviation Administration, the FCC statement said.

Qatar Airways Files Claim Over New Airport

Qatar Airways said it was filing a USD$600 million legal claim against a contractor for a delay in opening a new airport in Doha.

Lindner Depa Interiors, a German-Dubai joint venture, holds a USD$250 million contract to build 19 airport lounges by the middle of 2012, Qatar Airways said in a statement on Saturday.

In a statement later in the day, LDI said it had not received a legal claim from Qatar Airways and described the carrier's allegations as "false and misleading".

It said it was not able to meet its original completion deadline because it was denied full access to the project site for the first nine months of a 16-month contract.

American Air Pilots Approve MOU On Merger

Union leaders who represent American Airlines' pilots approved a tentative agreement on Saturday for how the airline could merge with US Airways.

The board of the Allied Pilots Association (APA) said it voted 11-5 to approve a memorandum of understanding that, with approval of other parties, "would serve as a framework for an agreement" if the airlines merge.

The union declined to provide details of the agreement, citing a non-disclosure agreement it signed as a party to the merger talks.

American, which is restructuring in bankruptcy court, is in talks to merge with US Airways. American could merge as part of the structuring process or exit bankruptcy and then decide whether to merge. A merger could be announced as soon as January 9, when AMR's board is due to meet.

A framework for the union agreements are a crucial part of the merger discussions. The APA said it is in talks with officials from American's parent, AMR, US Airways and the US Airline Pilots Association, which represents US Airways pilots. Also included in the talks is the Unsecured Creditors Committee, which represents creditors of American.