Travel Roundup: MGM Mirage CityCenter Bankruptcy, Southwest Reaches Labor Agreement, Less Baggage Mishandling and More
Sources say CityCenter close to bankruptcy – MGM Mirage and Infinity World’s $8 billion Las Vegas development, CityCenter, may file bankruptcy, reports say. MGM Mirage partnered with Infinity World, owned by Dubai World, to operate the project on the Las Vegas Strip which will feature casinos, shopping, hotels and condos, but earlier this week Dubai World sued MGM Mirage for breaching their agreement and is attempting to sever the partnership. The suit came after MGM’s annual report which stated its precarious and debt-laden financial situation. CityCenter could file for bankruptcy as soon as Friday. CityCenter reportedly hired law firm Dewey & LeBoeuf to prepare the bankruptcy filing, but MGM Mirage and their lawyers declined to comment on the validity of the reports. [Source: Reuters]
Southwest reaches flight attendant union contract – After 10 months of negotiations, Southwest Airlines reached a tentative agreement with Transportation Workers Union Local 556, which represents the company’s 9,700 flight attendants. The employees will get pay raises and higher 401(k) contributions over the next four years. Union members are expected to vote on the contract in May. [Source: Denver Business Journal]
Less airline baggage means less baggage mishandling– Airlines mishandled 23 percent fewer bags last year, most likely due to fewer passengers checking luggage because of higher fees. The number of checked bags that were late, sent to the wrong destination, damaged or lost dropped 32.8 million from 42.4 million a year earlier, SITA reported. The decline was a first for the group since it began publishing annual luggage reports in 2005. [Source: Bloomberg]
U.S. Travel Association launches “Faces of Travel” campaign — The U.S. Travel Association, an industry-wide trade group, is looking for workers for its “Faces of Travel” campaign. The group’s campaign, launched Thursday, hopes to motivate millions of travel industry workers to submit 45- to 60-second videos describing why travel is important to them, their company and their community. The campaign hopes to put a face to the industry that will interact with the media, politicians and the public. [Source: Orlando Sentinel]
Bay Area resident and award-winning business journalist Barbara E. Hernandez has covered tourism, real estate and personal finance. Her clients include the New York Times, Los Angeles Times, San Francisco Chronicle and Washington Post.
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