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There's budget travel, then there's communist time warp

If you're looking for a cheap place stay in Europe this summer, Berlin has a bargain for you. The new Ostel hotel offers all the "comforts" of life in the former East Germany. Its rooms — complete with portraits of Socialist Unity Party leaders — feature bed linens, toilets and other fixtures from the old GDR days. The mattresses, thank goodness, are new. You can book a bunk decorated in lovely tones of orange and brown for as little as 9 euros a night.

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Zoom over to London

OK it's not faster, but there is a cheaper way to get to London today. A Canadian airline called Zoom starts flying between JFK and Gatwick for $199 each way — a very low price for summer. But you'd better book early because only about a quarter of Zoom's seats will go for that price.

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Who says it never rains in Southern California?

Flying in and out of Los Angeles International Airport can always be a little hectic. It was more so yesterday. A minor security breach and an unrelated incident involving a broken water pipe led to a temporary evacuation that kept passengers from entering Terminal One for 90 minutes. Long lines, delays, hassles no doubt. But even the most seasoned LAX travelers probably weren't prepared for the brief shower they got when that broken pipe set off the fire sprinklers.

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Upgrades for all

Maverick airline Virgin America starts selling tickets today, and it promises pampering — even back in coach. All passengers will be able to order food from their seats, watch TV or listen to music. A one-way ticket between Los Angeles and San Francisco will start at $44, but paying up for first class will still offer its own bonuses, like sitting in a massage chair. Inaugural flights take off August 8 from LA and New York.

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Yet another reason to wrangle an upgrade

United Airlines today announced upgrades to its international business class cabins. Seats will be cushier and they'll recline to lie fully flat, like a personal in-flight B&B. Other new amenities include larger personal TVs and noise-canceling headphones. Several overseas airlines already offer the flat-bed seats, but United is the first U.S. carrier to do so.

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You've heard of a booze cruise

How about a booze train? Amtrak is offering $100 in free alcohol to people who board a new high-end sleeper car service this fall. Tickets for the long-distance trips run about $800 and up.
Some folks have expressed concern that $100 in free drinks might be a bit excessive. But as long as the conductor stays sober...

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Look, it's a Virgin America plane!

Passengers today will find out if Virgin America is as super as it promises. The carrier's inaugural flights take off from its hub in San Francisco to New York and L.A. Some of its round-trip cross-country fares will run less than $300, which could put some price pressure on competitors like JetBlue and Southwest. Virgin says it's committed to trying to keep a smile on your face, and it offers some more tangible new extras as well, like free text messaging between passengers and USB, Ethernet and power plugs at every seat.

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AirTran, Midwest merger cookie crumbles

AirTran's $431 million takeover bid for Midwest Airlines — beloved by regular passengers for its Signature Service that includes chocolate chip cookies baked fresh onboard — has expired. No doubt good news for the folks over at Save the Cookie, a campaign that rose to petition the takeover attempt. And Midwest already has other plans cooking. The company said instead it's going to move ahead with an all-cash offer from TPG Capital. The private equity firm formerly known as Texas Pacific Group is offering $16 per share for Midwest.

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Always blame it on the computer

If you want to go to Cuba, you can't just go online and book a trip. Well, actually for a while, you could do it on Travelocity — only it wasn't legal. The travel website just paid $180,000 in fines to the U.S. government for violating the 45-year-old embargo against Cuba. It booked almost 1,500 trips to the island between 1998 and 2004. Travelocity is the first online travel company to get in trouble over this. A spokesman said the trips went through because of "technical failures."

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I can't find my boarding pass. Will you text it to me?

Instead of fumbling through your bag to find your boarding pass at the airport, soon you may be able to just reach for your cell phone instead. The International Air Transport Association has announced a new bar code standard that would allow passengers to register their mobile numbers with an airline and receive a text message that would be scanned by check-in staff. Carriers like Continental and Southwest say they're interested in making the switch, but first feds handling airport security need to decide if it's OK.

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Singapore: Your Airbus has arrived

European planemaker Airbus turns over the keys of its long-awaited A380 jumbo jet today. Singapore Airlines is the first airliner to collect the jet -- 18 months behind schedule. Delays cost Airbus $8.5 billion. The company now says it is on track to to deliver 13 aircraft next year. Singapore Airlines says the plane will begin flights to Sydney later this month. The first A380 will have space for nearly 500 passengers and include 12 luxury suits for first class travelers.

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'It's so good . . . it SUX'

If you fly into Sioux City, Iowa, you fly into an airport with the identity code "SUX." Not exactly the most flattering name. City leaders had planned to scrap the code, but airport trustees turned down alternatives proposed by the FAA. So city leaders have come up with a new plan: embrace it. They've come up with a new marketing campaign. T-shirts, caps will sport a new slogan: "Fly SUX."

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Sometimes, you just gotta go . . .

Looking for a new accessory for your car? How about a toilet? A Japanese company just unveiled one. I mean, a car toilet. "Very handy during major disasters such as earthquakes or when you are caught in a traffic jam." That's what the company says. Not sure about earthquakes but… I can see how someone might get desperate in a traffic jam. The product is basically a cardboard toilet bowl, with a water-absorbent sheet inside. And a curtain. You can also take it with you if you wish, the thing fits inside a suitcase.

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As if traveling wasn't expensive enough

The new U.S. passport laws have been a headache for many Americans hoping to travel to Mexico or Canada. Now, a congressional inquiry reveals all those shiny new passports may have been sprinkled with a little price gouging. Americans may have been overcharged by as much as $100 million a year. Each passport may have cost $14 more than it costs to produce. And now a couple of senators are calling for the government to account for those charges.

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New air travel report says we're not exactly soaring

It's better, but it's still pretty bad. That pretty much sums up a new government report about U.S. air travel. Overall, flight delays improved in September. That's in part thanks to nicer weather.
But when you look at the year as a whole so far, on-time performance remained the worst in 13 years. For your best chance of being on time, go with Aloha Airlines -- the carrier had the highest on-time arrival rate in the Department of Transportation report at 95 percent.

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I'd like 3 gallons of Google

Nevermind stopping at a gas station and asking the clerk for directions -- go to the pump instead.
A new partnership is being unveiled today between Google and gas-pump maker Gilbarco Veeder-Root. It will allow Google to dispense driving directions at thousands of gasoline pumps across the U.S. starting early next month. After a driver selects a destination, the pump will print out the route. The Internet-equipped pumps will also suggest local landmarks, hotels and restaurants picked by the gas station's owner.

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Free beer! For business-types

Don't rush to the gate if you're flying Southwest and hope to nab a good seat. Starting today, the airline is no longer offering its first-come, first-served approach to boarding. Instead, business travelers will get first dibs, because they pay the highest fares. Increased competition is leading to the new focus on business types. Southwest will also include some other perks: additional frequent-flier credits and a free beer, or other alcoholic beverage.

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Airbus 'threatened' by dollar's decline

If there is a worst-case scenario for a company in these days of a really weak dollar, that would be Airbus' scenario. The European plane maker sells its jets in dollars, so their making less money these days. But their expenses are not lowering a bit -- they are in euros. So bad is the situation that yesterday, Airbus' chief executive said that the dollar rapid decline is life-threatening for the company.

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Hope you like your coworkers...

The cost of business travel is expected to go up about 7 percent next year. So guess what? You might have to bunk with your co-worker. A survey by Orbitz found 24 percent of business travelers have been required to share a room on the road. In New York, the cost of a hotel room is up 14 percent over last year - 318 dollars a night.

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Little town of . . . lucky slots

It's the company that helped build hundreds of U.S. warships, the Golden Gate bridge, and New York City's skyline. History buffs have wanted to explore the massive ruins of Bethlehem Steel in Pennsylvania for years. Now, they could have a chance thanks to an $800 million casino going up on the site. About 5 million people a year are expected to visit the the slot-machine complex being built by Las Vegas Sands. That could help provide the economic support to preserve the former steel giant's historic buildings for public display. Sands has already saved 20 buildings from the wrecking ball.

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Flying towards higher costs

Here's a prediction for 2008: flying is not going to be fun. You'd think with all of the travel trouble we saw last year, including uncomfortably full flights, airlines would want to roll out some extra planes. Nope. The New York Times reports some big carriers are actually planning on reducing domestic capacity this year. Airlines want to drive up fares to offset rising energy costs, but it's not a new trend. In 2007, Southwest and Continental were the only airlines out of the top seven that didn't reduce capacity.

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Passengers bare all on a flight to the Baltic

A German travel agency is baring new vacation possibilities. Starting Friday, you can book a seat on a nudist flight to a resort on the Baltic Sea. OssiUrlaub.de product manager Sandra Koehler says so-called "free body culture" is popular especially in East Germany, but the agency's been getting calls and e-mails about the service from all over the world. The crew will be clothed for safety reasons. The day trip will cost 499 euros -- about $735 U.S. If the 55-passenger flight sells out, the agency says it may plan more naked outings.

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Virgin's plight to produce less CO2

Virgin Atlantic took to the skies this weekend, powered by biofuel. Virgin head Richard Branson says yesterday's jumbo jet flight from London to the Netherlands was to prove there's an option that can produce less carbon dioxide than normal jet fuel. But some climate change experts say the test flight was nothing more than a publicity stunt. British papers quote experts saying more and more evidence shows carbon savings from biofuels are negligible.

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You need more options for space travel

If a visit to outer space is one of your vacation destinations, a California-based aerospace company may soon be able to book that trip. X-cor Aerospace is expected to announce today that they'll be offering short flights to interested tourists starting in 2010. X-cor's ship is called The Lynx. It's a two-seat vehicle designed to take off from a runway like any normal plane, and it can reach altitudes almost 40 miles above the Earth. No word yet on ticket prices.

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Aloha, Aloha

If you visit the Web site for Aloha Airlines this morning, you won't be able to check out any flight deals to Hawaii. Instead the site gives notice that the airline's shutting down passenger service today. Then you'll see a couple links to carriers United Airlines and Hawaiian Air.
The airlines are providing assistance to Aloha passengers to help get them where they were booked to go. Aloha's been hurt by high fuel prices and competition for inter-island passenger business with Mesa Air Group's Go! airline.

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Mounting airline fees aren't fare

If you fly Delta, watch out for extra fees that start today. The airline is imposing new or higher fees on all kinds of travelers -- frequent fliers, people travelling with pets, those booking tickets by phone, even children flying alone. The charges are the latest attempt to bring in cash to make up for expensive fuel costs.

Delta isn't saying how much revenue it expects from the changes. An airline spokeswoman says raising fares doesn't work because of the need to stay competitive.

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Tour Sex and the City hangs for $24,000

Oh to go where Carrie, Samantha, Charlotte and Miranda go. You can, if you have an extra $24,000 to go with your Manolo Blahniks. A travel company called "Destination On Location" is offering a new tour that will start the day before the premiere of Sex and the City, the movie. Guests on the four-day Manhattan vacation will be chauffeured to upscale stores, spas and nightspots. The first client to book a spot on the tour is a woman from Singapore, where the show is banned. The same company plans future trips based on films including the Lord of The Rings that would take you to New Zealand.

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Fewer routes to paradise

The abrupt shutdown of two airlines this week means there are fewer ways to get to a good luau. With Aloha Airlines and ATA out of the picture, that luau is going to be out of reach for more people. Experts say the losses could mean fare hikes for an already expensive vacation destination, and Hawaii will be missing out on tourism dollars. One official says she's expecting a loss of more than 500,000 visitors. That's just the number of travelers ATA was expected to bring to the islands during the remainder of the year.

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Flights grounded at Heathrow -- for snow!

Just if things were not bad enough at Heathrow's airport terminal 5 . . .

A little bit of help from the forces of nature arrived this weekend -- Snow! One in 10 flights had to be cancelled today. Yesterday 144 flights were grounded. And now the whole fiasco is threatening with doing away with BA's plans to making pay outs to share holders. The company was planning on retuning to the dividend list if it met its margin target. That was before they started counting the cost of the chaos at terminal 5. More than 30 million dollars so far...

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Happy hours at Hemingway's hang

Americans tourists hit by the falling dollar now have something to soften the blow. At least if they're in Italy and patrons of Harry's Bar -- The Roman restaurant where Ernest Hemingway once hung out.

The owner is offering Americans a 20 percent discount until the weak dollar recovers. And that's no bad thing. Harry's is one of Rome's most expensive eating places.

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Skybus to file for bankruptcy

Another airline bites the dust.

Skybus -- home to the $10 flight -- is expected to file for bankruptcy protection Monday. Just three days ago, the airline suspended flights -- leaving thousands of ticketholders stranded. The carrier said a slow economy and rising fuel costs were behind its demise.

Skybus is the third U.S. carrier grounded by bankruptcy in a week.

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Eurotunnel turns profit after 14 years

The Eurotunnel -- you know, the underwater passageway between Britain and France -- opened in 1994. And now, 14 years later, the tunnel turned a profit (for 2007). Earnings were $1.5 million dollars. Maybe not the best return EVER. But a feat never the less.

The tunnel cost about $25 million (16 million euros, today's exchange.) to build -- more than double initial estimates. Its private owners had been drowning in debt. That debt was restructured in 2006 and is partially behind this new profitability.

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American cancels more flights

The skies are just not that friendly anymore. American Airlines has canceled at least 900 more flights today. The carrier has scrapped one in three of its flights over the past three days.

It's been inspecting its jets for faulty wiring. And if that's not bad enough, another budget carrier has fallen out of the sky. This one's based in Hong Kong. Oasis airline has been flying only for about a year and a half. It offered flights from the U.K. to Hong Kong for $130 each way.

Apparently those deals really were just too good to last. Hundreds of passengers were stranded when the airline stopped flying late yesterday.

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Frontier Airline declares bankruptcy

It's like they're falling from the sky. Frontier Airline declared bankruptcy. The airline says it's been hit by rising fuel charges and a falling economy. They've also got a new excuse -- The carrier is blaming its credit card processor for garnishing ticket sales. The Denver-based carrier says it will keep flying.

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'Lost' luggage back at Heathrow, but travelers already went home

And here's the latest news from Heathrow's Terminal 5 fiasco...

You might remember that early this month British Airways sent about 5,000 bags to be sorted out at an alternative location a little far from the U.K. -- Milan, Italy. Now, the airline is admitting that hundreds of those bags are coming back to London. Their owners already finished their trips. So now the bags are going to continue their own vacation at yet another "alternative location" -- possibly Gatwick Airport in London.

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Air China flying high

The U.S. airline industry might be flying on a wing and a financial prayer, but not so in China. AIR China is reporting an almost 150 percent increase in profits for the first quarter. The airline is carrying more passengers thanks to China's economic boom. The rising value of the yuan against the dollar is helping, too. That's because Air China pays for fuel in dollars. Profits might rise further as the company expects to get another boost from visitors flying in for the Beijing Olympics.

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Continental turns down United, flirts with British Airways

Continental Airlines has said no to a merger with United Airlines. Continental's executives seemed to be concerned about United's weak financial condition. Just last week, United posted a $537 million loss for the fist quarter. No one is crying too much, though.
Continental is now going to focus on a possible alliance with British Airways. United is also moving on fast. A merger deal with U.S. Airways seems to be in advance talks.

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Upscale airline joins those filing for bankruptcy

If you have a ticket for a flight on Eos Airlines, you'd better call your travel agent. The upscale carrier is filing for bankruptcy. Eos tried to fill a niche by offering luxury service to business travelers flying from New York to London. A roundtrip ticket included champagne, gourmet food and plenty of leg room. The credit crunch and high fuel costs are to blame for grounding Eos. It's the fourth U.S. airline to close in the past few weeks. The others are Hawaii's Aloha Airgroup, ATA Airlines and Skybus Airlines.

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Vacation plans hit 30-year low

A lot of Americans may be putting off the trip to Disneyland until next year. The group that measures consumer confidence says the number of people planning to take a vacation this summer is the lowest in 30 years. The Conference Board released it's monthly report yesterday and the results aren't good. The Consumer Confidence Index has hit a five-year low. Researchers say Americans are anxious about their jobs and the rising prices for food and gas. The board surveyed 5,000 American households earlier this month.

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