Aloha Airgroup named Gordon Bethune chairman of the board of the Airgroup and Aloha Airlines. Bethune is the former chairman of the board and CEO of Continental Airlines (CAL).

Hyannis, Mass.-based Cape Air named Dave Bushy, currently vice president-flight operations for JetBlue, to the newly created post of chief operating officer. Bushy joined JetBlue three years ago after 24 years at Delta, starting as a line pilot and ultimately becoming senior vice president of flight operations. Cape Air services 700,000 passengers annually with flights in New England, Florida, the Caribbean and Micronesia.

President Bush nominated Mary Peters to succeed Norman Mineta as the next Secretary of Transportation. She headed the Federal Highway Administration between 2001 and 2005 and prior to coming to Washington was director of the Arizona Department of Transportation. Currently, she is senior vice president of HDR, an engineering firm. In 2006, Bush appointed her to the National Surface Transportation Policy and Revenue Study Commission, where she serves as co-vice chairman.

Frontier Airlines (FRNT) named Tom Nunn to head its new wholly owned turboprop subsidiary as president. Nunn is currently vice president of safety and security for the Denver-based airline.

Southwest Airlines (LUV) named Greg Wells senior vice president of operations and Mike Van de Ven executive vice president and chief of operations. Wells, who becomes a member of the executive planning committee, is responsible for ground operations as well as cargo and flight dispatch departments. He oversees the airline's on-time performance initiatives and will continue as the company's emergency director, overseeing its crisis operations.