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Travel Roundup: Red Roof Defaults, Delta's Emergency Landing, Ryanair's Passenger-Baggage Handlers and More

By Barbara E. Hernandez | Jun 24, 2009

Red Roof Inns defaults on loans — Red Roof Inns Inc. defaulted on four loans totaling $361.4 million. The loans are 30 days overdue and its collateral includes 113 Red Roof Inns, according to credit rating company Realpoint LLC. The four loans are valued at $181.75 million, $76.6 million, $67.6 million and $34.4 million. Red Roof Inns Inc. said it intended to restructure the debt and day-to-day operations would not be affected. [Source: Bloomberg]

Delta makes emergency landing in Ontario, Calif. — Officials say a Delta Air Lines plane made an emergency landing after one of its engines malfunctioned. The flight, from Atlanta to Ontario, Calif., managed to make it to its intended destination at Ontario International Airport after the Boeing 757 was forced to shut down its right engine. A Federal Aviation Administration official said pilots of the plane declared an emergency after the right engine began vibrating violently and quickly shut it off. None of the crew or 190 passengers were harmed. [Source: Los Angeles Times]

Ryanair proposes passengers handle own bagsRyanair is proposing that passengers carry their own luggage to their plane, bypassing baggage handling completely. The passengers would then pay £5 ($8.21) per bag for each piece of luggage placed in the hold. Ryanair chief executive Michael O’Leary said the new policy would cut down on baggage handlers, from five to one per plane, and save the airline £26 million ($43 million) a year. [Source: The Telegraph (U.K.)]

Southwest reaches deal with employeesSouthwest Airlines Co. said it reached an agreement with the its customer support and service employees for a tentative four-year contract. The contract was ratified by workers, who were represented by the International Association of Machinists and Aerospace Workers District 142. The agreement includes a 3 percent wave increase and more retirement benefits. The new contract, which covers 5,300 employees, expires in October 2012. [Source: Dallas Business Journal]

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.

BNET User Analysis

Web Buzz:
  • Red Roof defaults on $361 million commercial loans$

    Hotel News Resource - 152 days 16 hours 7 minutes ago

    Red Roof defaults on $361 million commercial loans Four Red Roof Inns loans totaling $361.4 million were 30 days delinquent in June, and have or will be handed over to a special servicer, which deals with troubled loans, said Frank Innaurato, a managing director at Realpoint, a credit rating company. The loans are secured by 131 locations, he...

  • Old Chrysler is in default on federal loans

    Detroit Free Press - 63 days 10 hours 8 minutes ago

    The old Chrysler lost $344 million in July, and the company continues negotiating with the U.S. Treasury over a new schedule for repaying $3.3 billion in loans that are technically in default

  • Y-stone Club owner has personal debts of $150M

    Washington Post - 207 days 8 hours 12 minutes ago

    BILLINGS, Mont. -- Court filings show Yellowstone Club owner Edra Blixseth is more than $150 million in debt, while most of her houses, cars and other property have been put up as collateral on overdue loans

  • Pertamina's Q1 net profit dives 56% on year on lower oil prices

    Platts - 165 days 23 hours 2 minutes ago

    Jakarta (Platts)--11Jun2009 Indonesia's state-owned oil and gas company Pertamina posted a net profit of Rupiah 3.614 trillion ($361.4 million) for the first quarter of the year, down 56% from Rupiah 8.3 trillion in Q1 last year due to lower oil prices, a senior official said late Wednesday. "The Indonesian Crude Price was around $97/barrel...

  • Travel Roundup: SF's Four Seasons in Default, Arizona Touts Travel, Prank Calls Damaging Hotels, and More

    BNET Travel - 136 days 15 hours 41 minutes ago

    Four Seasons Hotel San Francisco in default — The Four Seasons Hotel San Francisco is in default on its $90 million, two-yearloan, developer Millennium Partners announced today. Millennium, known for luxury condos and hotels, said that it stopped payments as a negotiating strategy with LNR Property Corp. Analysts call it a “default of...

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