Mexicana Airlines has announced that it will halt all operations, according to Reuters. Having filed for bankruptcy protection earlier in August, the airline says it has simply run out of cash to operate, despite obtaining new investors.

The Virgin Blue Group which operates Virgin Blue and V Australia is seeking larger aircraft and new partners as part of a series of moves that could make competitor Qantas Airways a bit nervous. Consider the first volley launched in an Australian airline battle that's certainly worth watching.

American Airlines first separated the first few rows in the economy section to give its high-tiered frequent flyers an opportunity to sit close enough to first class to sniff the wine cork. Now others will have the opportunity to sit as far forward as the first three rows in coach ... for a fee.

The closure of airspace in Europe due to the presence of volcanic ash this spring left a dust cloud of unsettled compensation claims and a storm of controversy yet to subside. The tipping point seems to have been an extension of passenger rights by the European Court of Justice last November to include compensation for long flight delays in addition to cancellations. At the behest of some UK airlines, the High Court has halted all new claims hearings in the UK involving delays until the matter can be addressed by a European Court.

Latin America is one of the faster growing regions for commercial aviation, and if there were any doubts about its viability as a strong aviation market, don't tell that to LAN Airlines. They are swallowing up airlines and have their eyes set on a major global expansion. The latest act? A US$3.7 billion purchase of Brazil's TAM Airlines.

The U.S. Department of Transportation (DOT) reports that as few as three commercial flights exceeded the three-hour tarmac delay limit for the month of June. Last year, the number was 268 in June. Is the controversial rule working, or is its effectiveness still up in the air (or stuck on the tarmac)?

JFK International Airport in New York is testing a system that allows airlines to ask for their preferred takeoff times and then schedules them in 15-minute blocks. In an airport notorious for some of the country's worst delays, has the system helped?

In 2009, the U.S. implemented the Electronic System for Travel Authorization (ESTA) which requires that travelers bound for the U.S. complete an online application at least 72 before departure. The form can only be completed online and it is for the 36 countries under the Visa Waiver Program (VWP) whose citizens do not require a standard visa to enter the U.S. Starting 8 September, this aerial permission slip will cost US$14 (€10, £9).

Qantas subsidiary Jetstar and Air Asia, a Malaysian low-cost airline, announced 'world's first' low-cost alliance in January, 2010. Now, Thai Airways and Singapore-based Tiger Air will join forces to create a new low-cost airline, Thai Tiger.

Sometime this month, perhaps around 18 August, Spanish air traffic controllers may walk off their jobs, potentially stranding 2 million flyers over a three-day period. Given the issues with Mother Nature, airline strikes and controller strikes elsewhere in Europe, problem-free flying in Europe in 2010 has become a rarity.