Japan disaster to hit premium air travel-IATA

"It is too soon to judge how the Japanese earthquake and tsunami in March will change air travel, but the market is big enough to have a materially adverse impact on the international total for that month," IATA said in a statement.

IATA, which represents over 240 airlines, made the comments in its monthly premium monitor as it said growth in demand for business and first class tickets on international flights increased to 8.1 percent in January from 7.1 percent in December.

"Momentum was strong at the start of 2011 and rising business confidence points to extra gains in the months ahead," IATA said, adding that unrest in the Middle East and the Japanese disaster would likely hit February and March figures.

Southwest raises fares $5 each way

Southwest Airlines increased fares on the bulk of its routes by $10 roundtrip Friday, encouraging competitors to quickly match prices.

United, American, US Airways, Continental, Delta, Frontier, JetBlue and AirTran followed and raised their fares Friday evening, according to Rick Seaney of FareCompare.com, which narrowly monitors fares.

"I don't expect this hike to fail," he says. "I don't ever recall an airfare hike in which Southwest participated that was not widely winning in raising ticket prices."

Southwest says rising fuel costs forced its move. "We implemented a modest systemwide fare raise of $5 one-way to offset higher fuel costs," says Southwest spokeswoman Ashley Dillon.

Delta Fined $2M For Violating Travel Rules For Disabled

The U.S. Department of Transportation levied a $2 million civil penalty against Delta Air Lines Inc. (DAL) for allegedly violating policy protecting air travelers with disabilities.

According to the agency, an investigation found "many violations of the requirement to provide assistance getting on and off the airplane." The airline carrier's complaint records also showed that it frequently "did not provide an adequate written response to disability complaints from passengers."

The Aviation Enforcement Office also found that Delta--the second biggest U.S. airline by revenue failed to properly report each disability complaint in reports filed with the department.

Of the $2 million penalty, $750,000 must be paid by the carrier and up to $1.25 million may be used to develop its service to passengers with disabilities beyond what is required by law. It is the largest civil penalty ever assessed against an airline by the Department of Transportation in a non-safety-related case.

High-speed train system has a long way to go

The Obama management is proceeding at full speed with plans to create a national high-speed rail system, proposing billions in next year's budget to help lay the groundwork. But political opposition and hefty costs could mean the ambitious program goes nowhere speedy.

President Obama's 2012 budget unveiled Monday includes $8 billion for high-speed rail coming year, part of a planned $53 billion investment in enhanced train service over six years.

The wealth would further Obama's vision of providing high speed train access to 80% of Americans in 25 years.

Egypt still a travel risk for Australians

Egypt prepare for historic democratic change after President Hosni Mubarak gave in to thousands of protesters and stepped down.

Foreign Affairs Minister Kevin Rudd said the Gillard Government had offered to help in the transition to democracy, but said travellers and Australian-Egyptian nationals should continue to follow the Government's travel guidance.

"Public shouldn't just conclude automatically that security concerns have disappeared," Mr Rudd said.

Nokia Joins Forces With Microsoft to Challenge Apple, Google; Shares Slump

Nokia Oyj, the world’s largest maker of mobile phones, said it’s forming a software corporation with Microsoft Corp, betting that together the two companies can challenge Google Inc. and Apple Inc.

Nokia fell as much as 12 percent, the biggest fall in a almost 10 months, after its plan to make Microsoft’s Windows its primary software was seen as a sign of the extent of its troubles taking on Apple’s iOS and Google’s Android platforms.

“It’s a clear admission that Nokia’s own platform strategy has faltered,” told Ben Wood, a London-based analyst with CCS Insight. “Microsoft is the big winner in this deal, but there are no silver bullets for either company given strength of iPhone and Android.”

Coke Sales Rise Globally

Coca-Cola Co. posted solid fourth-quarter worldwide sales growth and continued to take share from rival PepsiCo Inc. in the key North American market.

Coke's growth was fastest in emerging markets like India and Brazil, but the company is seeing stabilization in its biggest markets. In North America, sales volume in juices, sodas and all other beverages rose 3%, excluding the impact of acquisitions and foreign-currency translations. That was the third straight quarter the figure was up. Parts of Europe saw budding signs of recovery.

Significantly, Coke also saw its North American soda sales volume tick up for the third straight quarter, in defiance of a years-long slide across the industry as customers switched to water and other drinks for health and economic reasons.