Travel Roundup: British Airways-Iberian Merger Stalls, Starwood Plans for a Rough 2009 and More

British Airways-Iberian merger stalls -- British Airways said today that its merger with Spanish carrier Iberian is on hold, citing an economic slowdown in the U.S. and U.K. The two sides, however, are apparently still negotiating terms of the deal, which have been complicated by BA's estimated $2.7 billion pension deficit. [Source: Reuters, The Australian]

Starwood CEO prepares for a "difficult 2009" -- Starwood Hotels & Resorts CEO Frits van Paasschen said Starwood expects a tough time next year, but that its new brands Element and Aloft, environmentally-aware and hipster lines respectively, will help the company appeal to more travelers. Paasschen said Aloft's "informality, that cool factor" should make it attractive to many travelers -- even those headed to seemingly unhip destinations such as Rancho Cucamonga, Calif., Rogers, Ark., Montreal, Lexington, Mass., and Chicago's O'Hare airport. [Source: BTNOnline]

Seattle cruise company says no to Hawaii -- American Safari Cruises, a Seattle-based company, decided to yank plans for cruises in Hawaii until the economy improves, said CEO Dan Blanchard. Guests already booked on cruises will receive full refunds; the company still plans to start Hawaiian cruises "when liquidity returns to the capital markets." [Source: Pacific Business News]

Hurricane Norbert heads to Baja California -- Hurricane Norbert has been designated a "dangerous hurricane" that could threaten many of the hotels, cruises and airlines servicing the Pacific coast of the Mexican peninsula. Local officials have already canceled events and arrival dates for two cruise ships in Los Cabos. [Source: International Herald Tribune/Associated Press, Seattle Times]