ITEM: Dallas Business Journal (Friday, April 11, 2008)
American Airlines Inc. said 226 of its 300 MD-80 planes were flying again Friday morning and it expects 60 percent of its MD-80 fleet to be back in the air by 4 p.m. Central time.

The Fort Worth-based airline canceled 595 flights Friday, the fourth straight day of aircraft groundings, to complete Federal Aviation Administration inspections of its MD-80 planes.

American, the world's largest airline, operates about 2,300 flights a day.

The carrier canceled more than 930 flights Thursday, including 269 flights at Dallas-Fort Worth International Airport and 123 flights at Chicago O'Hare International Airport. That followed 1,094 canceled flights on Wednesday and 460 cancellations on Tuesday.

ITEM: Miriam Marcus in FORBES (Friday, April 11, 2008)
On Friday Frontier Airlines Holdings (nasdaq: FRNT - news - people ), announced it filed for Chapter 11 in the U.S. Bankruptcy Court in New York. Frontier is just the latest in an increasingly long line of airlines to see its fortunes decline during the current economic downturn, although the particulars of its case are unique.

Frontier shares plummeted 72.0%, or $1.13, to 44 cents in midday trading Friday.

Frontier’s chief executive Sean Menke, said the airline saw record traffic and sales in March, contrary to the trend of decreasing consumer demand seen elsewhere in the industry. He attributes Frontier’s lack of liquidity not to surging fuel prices but to its principal credit card processor.

ITEM: Jennifer Loven in the Associated Press (04-11-2008)
US: Bush Has `close Eye' on Airline Woes
CRAWFORD, Texas (AP) — President Bush is "keeping a close eye" on airline woes that are hampering travel for thousands and hurting an already cash-strapped industry, the White House said Friday.

Bush's Cabinet meeting on Monday, scheduled to discuss several issues such as a housing crisis, Iraq and a trade dispute with Congress, also now will feature an update for the president on the airline situation, spokesman Scott Stanzel said.

"For individuals who have had flights canceled or delayed, we know that causes a great strain on people, when they are going to attend weddings or visit to see family or traveling for business. Those are certainly concerns that we share," Stanzel said. "But we also share safety concerns. First and foremost, we want airline passengers to be safe."

Since last month's revelation that Southwest Airlines flew planes that had missed inspections — a violation of federal standards — the Federal Aviation Administration has stepped up its scrutiny of aircraft inspections. The result is misery for the flying public.

Thousands of flights have been canceled just this week. The grounding of American Airlines flights because of safety inspections on its MD-80s alone has affected at least 250,000 passengers.

Also, Frontier Airlines sought bankruptcy protection Friday, the fourth carrier to do so over the past several weeks as exorbitant fuel prices eat into earnings and a weak U.S. economy keeps more people on the ground.

The mess has Congress asking why the FAA tolerated years of lenient enforcement. The Senate confirmation process for acting FAA Administrator Robert Sturgell, whom Bush nominated in October, has been put on hold.

ITEM:
Northwest and Delta are going to merge due to the costs of trying to continue operating independently. NWA's headquarters will leave Minneapolis, but the hub will remain. The new airline will be named "Delta."

ITEM:
Oasis Hong Kong this week became the latest casualty of rising oil prices. The long-haul budget carrier, which offered fares to Hong Kong for as low as £65, went into liquidation, leaving hundreds of British travellers stranded.

After 18 months of operations, flights were cancelled with immediate effect when it emerged that the airline had accumulated losses of HK$1 billion (about £60 million). Its collapse comes at a time when oil prices remain at more than $100 a barrel.

ITEM:
LOS ANGELES (KNX 1070 NEWSRADIO) -- The skies may still be friendly, but it'll cost you more. United Airlines has announced a 30 dollar across-the-board rate hike on all U.S. domestic fares.

Airline experts cite skyrocketing fuel prices, the weakening dollar, and widespread worry about a potential recession as United's likely motives. No word on when the price bump takes effect.

ITEM:
ATA, Skybus, Aloha and Frontier have all filed for bankruptcy this month. Several more smaller and regional carriers may follow. Frontier announced it will continue its schedule. The others shut down immediately, leaving passengers stranded.

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Take a bus or take a train. Nobody can be sure anymore that the airlines will honor their contract when you purchase their tickets.

First they eliminated the in-flight meals. Then they got rid of the peanuts and free coffee. Next they decided it didn't matter if luggage got to the same destination as the travelers. Now they are getting rid of the planes and passengers!

Years ago the government decided it wouldn't allow European and Asian airlines to serve domestic routes inside the US. I think they should look at that again in light of the incompetence our domestic carriers are showing.

With all this mess at our airports, who needs terrorists to wreak havoc on us?