The U.S.government proposed on Friday to auction some takeoff and landing rights at the New York area's two international airports, as a way to boost competition, a plan that drew sharp criticism from airlines.

WASHINGTON (Reuters) - The U.S.government proposed on Friday to auction some takeoff and landing rights at the New York area's two international airports, as a way to boost competition, a plan that drew sharp criticism from airlines.

Slot auctions designed to reduce delays nationwide and increase competition are coming to John F. Kennedy International Airport in New York and Newark Liberty International Airport in New Jersey, the government said Friday.

AMR Corp., the parent company of American Airlines, said Friday that certain covenants required under a credit agreement have been waived through March 2009, according to a filing with the Securities and Exchange Commission.

A week before Memorial Day travelers hit the airports, the Transportation Department announced Friday proposals to ease delays emanating from the New York City-area's congested airports, avoid widespread aircraft groundings and better inform travelers about prices and delays. The plans call for:

Congressional and airline industry sources say the Transportation Department will announce slot auctions at John F. Kennedy International Airport in New York and Newark Liberty Airport in New Jersey.

Federal aviation officials are examining why AMR Corp's <AMR.N> American Airlines asked mechanics to start skipping some safety checks to detect damage to planes from suspected lightning strikes, the Wall Street Journal said on Friday, citing internal company and agency documents.

NEW YORK (Reuters) - Federal aviation officials are examining why AMR Corp's <AMR.N> American Airlines asked mechanics to start skipping some safety checks to detect damage to planes from suspected lightning strikes, the Wall Street Journal said on Friday, citing internal company and agency documents.

United Airlines has begun talks with Continental Airlines Inc <CAL.N> for a possible alliance even as its merger talks with US Airways continue to advance, sources briefed on the matter said.

By Jui Chakravorty Das

Silverjet PLC is in talks to replicate its premium-class model through franchise deals around the world even as it treads cautiously in expanding its core business, the high-end airline's CEO said Thursday.

Airline stocks rose sharply Thursday after oil prices gave up earlier gains.

U.S. airlines carried nearly 3 percent more passengers in February compared with the same month last year, but did so while operating fewer flights, the government said Thursday.

United Airlines and Continental Airlines Inc. are talking about forming an alliance to gain some benefits of working together without going through a merger, which Continental rejected last month, a person close to the talks said Wednesday.

United Airlines and Continental Airlines are talking about forming an alliance to gain some benefits of working together without going through a merger, which Continental rejected last month, a person close to the talks said.