PlaneBuzz

This week's edition of PlaneBusiness Banter is now posted.

The news leading off this week's issue is demand. Are the airlines continuing to see increases in demand -- or is this just a mirage? You know -- something that airline execs made happen by a collective episode of wishful thinking exercised in a remote luxury resort in the woods.

Depends on who you ask.

Last week in New York, every airline executive that presented at the Next Generation Equity Airline Conference said that yes, demand was coming back. Some airlines were more bullish than others, particularly US Airways.

Then there was Southwest Airlines. Southwest Chairman, President and CEO Gary Kelly definitely had on the Ratty Old Bear Suit as he said the airline does not expect business travel to return in 2010.

Hmmmm.

This week we sort through the comments, including the ones from Delta Air Lines, which seem to indicate the airline's costs are going to be higher than anticipated for the fourth quarter. How come? Oh, and their capacity is not going to be reduced as much as anticipated -- and guess what? Your favorite airline may post higher-than-expected capacity numbers for the quarter as well. Why? JP Morgan analyst Jamie Baker gave his explanation last week.

New coverage to talk about this week. Dan McKenzie with Next Generation initiated coverage of Allegiant Travel this last week. What does he like about the stock?

British Airways did not have a good Monday. The airline got hit broadside today with two very bad pieces of news. One concerned the airline's proposed deal with Iberia and BA's ever-expanding pension deficit. The other bad news? The airline's flight attendants are mad and they aren't going to take it anymore. The group has voted to strike the airline starting on ...Dec. 22. Yes, just in time for the Christmas rush.

This week we also check in with our favorite Elf up at the North Pole -- Clyde.

Clyde not only gives us the scoop on this year's crop of letters to Santa from some of our airline CEO friends, he lets us in on a little North Pole scandal. Can't miss reading.

As expected the U.S. and Japan came to terms on a new "Open Skies" agreement over the weekend. Now -- where does this leave JAL and its two suitors -- American Airlines and Delta Air Lines -- who are fighting over it? And just why did the Japanese government not approve funding for the airline past the end of January?

Don't look now, but the price of oil has been dropping of late. Why? And will it continue?

All of this and much more in this week's issue of PlaneBusiness Banter.