The two remaining independent MPs, Rob Oakeshott and Tony Windsor, today came out in support of Labor, after a lengthy period where they were wooed by Gillard and her rival, Tony Abbott.

In a dramatic morning, which many believed was the most crucial in Australian political history; Mr Windsor first pledged his allegiance, with Mr Oakeshott waiting to be the last to signal his intent to back the incumbent Julia Gillard as prime minister. However, he warned that there would be significant changes to the federal parliament, suggesting that the decision to side with Labor did not automatically provide them with an unconditional mandate to govern. The decision eventually came after 17 days worth of protracted negotiations between the independents and main parties, compounded by an agonising prologue from Mr Oakeshott, who could have caused a hung parliament had he opted for the Liberals. The Labor Party alliance now has 76 seats in the 150-member House of Representatives,

Nationwide broadband facilities were highlighted as being the deciding factor in him joining the Labor coalition, although he did add that both parties had proposed generous reforms in the areas of education, health and regional infrastructure. He also claimed that Labor offered greater stability for Australia.

Mr Oakeshott said his decision was a judgement call that had been line ball all the way, adding that he felt the country still lacked unity as he drew out his announcement to a horde of waiting media. Mr Oakeshott too favoured Labor’s broadband policy, along with their commitment to climate change measures and promises to conduct a summit on tax reform.

Insurers are facing massive claims after the state was battered by storms and soaking rain over the weekend, with an estimated damage bill in excess of $10 million.

Around 250 homes were been affected with further evacuations expected in the next two days as around Shepparton, Horsham, Wangaratta and Sale continue to rise. Bendigo, Ballarat Shepparton and Horsham, a total of six relief centres have been established to help cope with the worst-hit areas. State Emergency Services have issued warnings that Horsham and Shepparton in particular will see water levels peak in the coming 24 hours, bringing further misery to the region as the huge volumes of water descend on the townships. The Goulburn River, which runs through Shepparton, has risen by 9.5 metres, and could spill over the levy if it reaches 11.2 metres. The government has sent 50 members of the Australian Defence Force members and a number of vehicles to the Shepparton area to assist emergency relief crews in sand-bagging, which is currently being aided by the help of around 800 volunteers

In Wangaratta, the SES said floodwaters had peaked and will likely recede from today, with homes around One Mile Creek and Three Mile Creek looking safer after fears of inundation. However, the 50 or so residents along Wilson Road are still at risk due to a levee holding back the King River at risk of crumbling.

The soldiers will help SES and CFA emergency crews, which have been working since Saturday morning, on tasks like sand-bagging or impact assessment. They will join 150 extra police and over 800 SES volunteers working to manage and mop up the flood waters.

Paul Hogan, famous for his portrayal of the iconic Crocodile Dundee, is free to fly out of the country after coming to an agreement with the Australian Taxation Office.

According to a statement issued by Hogan’s lawyer, Andrew Robinson, the actor would be allowed to return to his home in Los Angeles, but must provide the ATO with security, though no mention was made of exactly how much would need to be paid.

Hogan has been under a departure prohibition since he flew into the country two weeks ago for his mother’s funeral. The government order had prevented the actor from leaving Australia until an outstanding tax debt, believed to be in the vicinity of  $100 million, had been paid. Hogan, however, disputes the allegations and remains in negotiations with the Tax Commissioner, denying all allegations of wrongdoing. Lawyers for the ATO and Hogan had come to a mutual agreement during the course of a co-operative and cordial meeting according to Robinson.

Mr Robinson said the discussions between the two parties had revolved around the taxation system and also allegations made by a disgruntled former employee who allegedly accused Hogan of tax evasion after being fired from Hogan’s employment. No debts were discussed said Robinson, who added that his main concern had been ensuring that Hogan returned home safely. Hogan, 70, resides in Los Angeles with his son Chance, and wife and Crocodile Dundee co-star Linda Kozlowski.

The national carrier has been voted favourite long-haul leisure airline, beating out Cathay Pacific and Virgin Atlantic, in the 2010 Conde Nast Readers’ Travel Awards.

Air New Zealand was chosen by readers primarily for its outstanding performance in the areas of child friendliness and catering. Virgin Atlantic headed the awards in the category of service and staff, with Singapore Airlines topping the best in-flight entertainment section. In a further boost to tourism in the small South Pacific nation, the Conde Nast awards saw New Zealand voted the 5th-favourite holiday destination, with the accolade being won by Turkey ahead of Egypt, Australia and Italy.

The Conde Naste recognition comes in the same week that Air New Zealand was named the most reputable organisation in the country by business leaders. In that survey, by global management consultancy the Hay Group in conjunction with NZ Management magazine, Air New Zealand scooped the top honour from Fonterra, Fletcher Building, Beca Group and Kiwibank. The airline also ranked first in companies, with Kiwibank the top-ranked state owned enterprise. The Salvation Army led non-profit organisations, while the NZ Police topped government departments.

In 2010 to date, Air New Zealand has also won the Air Transport World Airline of the Year, two Skytrax Awards for Best Airline Australia/Pacific, Staff Service Excellence Award for the Australia/Pacific region and Best Airline at the 2010 Which? Awards.

Dramatic footage taken from an onboard mobile phone has shown sparks streaming past the cabin windows just moments after the pilot had taken to the intercom to announce an engine malfunction.

The Qantas Flight 74, which had onboard 212 passengers, departed San Francisco at 23:05 on Monday night (local time), bound for Sydney when the faulty engine exploded. Photographs have revealed the extent of the damage, with a gaping hole appearing in the engine.

Passengers on the flight said they heard a loud thud before the plane began to veer off to the left while in the air. There followed a period of vibrations when the plane continued to shake, causing widespread uncertainty for those on board who were still trying to come to terms with the pilot’s announcement.

 A spokesperson for the carrier confirmed that there had been an ‘engine surge’ which is akin to a small explosion, and that this was the cause of the damage. Qantas, however, denied that the engine had caught fire or that lives were at risk.

The plane completed two wide circles over the ocean to lower its fuel load before returning to San Francisco to complete an emergency landing. Airport officials reported that the plane had landed safely after being in the air for just under two hours, with no injuries suffered.

A new nationwide study by Ogilvy Illumination, the public affairs company, canvassed 1,000 voters who are still in the dark over how the next government will lead the country.

The survey found that one in every ten voters would change their choice completely if given the opportunity to vote again, which has been mooted in some circles, while 13 per cent of voters claimed they would change the way in which they voted under the preferences system. According to the pollster, this was sufficient evidence to suggest that if Australians were called back to the polling booths, there would be substantial changes to the present make-up of the federal parliament.

The age group most likely to alter their vote were those between 18 and 24, with 18 per cent of these voters saying if given another chance they would choose differently. The study also found that people in Queensland and New South Wales were most prone to swing between preferences, with twice as many people in those states claiming they would vote differently. In the election, these two states experienced the largest swings against the Labour government, suggesting that many might reconsider their move away from the incumbent ruling party.

The country remains in a state of confusion as the four independent candidates continue to mull over their decision as to who to support in a minority coalition. There is also a very real chance that they may decide not to join forces with either of the main parties, thereby forcing the country back to the polls.

The latest delay has seen the first delivery, due to be made to Japan’s All Nippon Airways this year, postponed until early 2011. This follows a series of hitches that have already seen the 787 project delayed by over two years.

On Friday, Boeing claimed that the latest setback was due to the lack of availability of the Rolls-Royce engine required for final phases of flight testing, with the US manufacturer adding that All Nippon (ANA) would be required to wait until the first quarter of next year for its much-trumpeted delivery.

ANA has pre-ordered 55 of the Dreamliners, which were originally promised to be delivered by March this year. The carrier said that it was disappointed with the latest news after Boeing had reported the initial testing had been a success.

The Seattle-built 787 range is Boeing’s most sophisticated airplane ever. Boeing claims that the carbon-composite aircraft is faster, lighter and more fuel efficient than other aircraft in its class, with less CO2 emissions.

The delay was not unexpected given the history of similar scale industrial programmes in the airline industry, with the most notable being the superjumbo from Airbus that led to heavy losses and a management clearout.

The long-haul subsidiary of Virgin Blue, V Australia, has been running at a loss since its much-heralded launch, with flights to Phuket and Johannesburg to be discontinued as of February.

The services that are in operation to Fiji will come under the operation of Virgin Blue’s medium-haul division, Pacific Blue, by the end of this year.

The parent company of V Australia confirmed today that V Australia’s financial drain on the group was not considered profitable, and as such did not align with the strategic position of Virgin Blue. The company, in a statement to the financial markets, added that the lack of integration into the domestic network brought about the decision. In the past financial year, V Australia recorded a per-tax loss of $42.8 million

John Borghetti, Virgin Blue’s chief executive said that the chances of V Australia returning a profit as a minor player on the African market were remote, adding that the Phuket service was also sub-optimal for the carrier’s configuration through its use of Boeing 777-300 aircraft. Instead, Virgin will place four B777s onto the regional route network, which will allow the company to still fly to Phuket but only from Perth via Virgin Blue.

Virgin also announced it had reached a new codeshare agreement with Etihad that will see connections to the Abu Dhabi hub, which features onward connections to more than 65 destinations across Europe, the Middle East and Africa, allowing global services to be maintained by the Virgin group.

Qantas and its budget sibling Jetstar are consolidating the majority stake they already hold on domestic flights, announcing significant expansion to the network that comprises two-thirds of the market.

Qantas today announced that it will increase its capacity by 9.6 per cent, with discount offshoot Jetstar revealing plans that will see up to 30 per cent growth by the end of this year. In coming months, an additional 65 local weekly return services will be added to the Qantas portfolio, while Jetstar will add a further 120. This will result in seven more aircraft taking to the skies as 66,000 weekly seats are added to the network.

The announcement is the latest sign that the global financial crisis has not impacted the travel industry in Australia as much as in other nations, with the local consumer recovery representing slow but steady growth for the country’s largest aviation group. Chief executive Alan Joyce said Qantas has seen improved demand domestically and had acted accordingly, typifying the ambitious expansion plans espoused by the group earlier this month.

Mr Joyce said that the group boasted the domestic market’s two most profitable carriers which afforded a position of optimisation, with ongoing changes reflecting the desire to maintain the 65 per cent market share enjoyed by the carrier. Perth and Broome in the country’s west will both benefit from new Qantas services, while Jetstar will focus on Cairns in the immediate future.

The carrier announced today that six jumbos on the Tokyo and Frankfurt routes would be refitted with an extra 40 premium economy seats, making good on its earlier promise.

Premium economy was introduced by the airline as it sought to consolidate the lucrative business travel market in the wake of widespread corporate budget cuts that have occurred during the financial downturn.

Under a fortnight ago, chief executive Alan Joyce told media that Qantas would be expanding its premium economy availability, stating at the time that economy cabins on selected aircraft would be enlarged by up to 26 per cent. Mr Joyce said the reconfiguration initiative would increase traffic and yield through the class, which sits somewhere between the confines of economy and opulence of business class. Initial feedback has suggested that the premium economy class has proven popular with both wealthy families and budget-conscious executives.

Mr Joyce said since the 2008 debut of premium economy, customer reaction has been encouraging and the product has experienced positive feedback. Customers using the service can enjoy additional baggage allowances, priority check-in, a dedicated cabin crew and streamlined boarding and disembarkation. Ideally suited to light business travellers, the service features laptop power in its larger seats, while menu and wine offerings are of a higher standard. The seats are housed in the centre of the airplane, between economy and business, with their own in-flight attendants. Fares are around 25 per cent more than in economy.