Travel Roundup: Travel's Record Drop, Republic Takes Over Mokulele, Continental Wants Rio and More

(MoneyWatch)  Travel spending declined for first time since 9/11 -- Spending on travel and tourism fell in 2008 for the first time since 9/11, the U.S. Commerce Department reported. The report cited canceled vacations, a strong dollar repelling foreign visitors and companies shelving travel as reasons for the decline. Leisure and hospitality establishments lost 33,000 jobs in February and tourist cities like Myrtle Beach, S.C. had unemployment jump to 14.4 percent. Travel spending fell at a 22% annualized rate in the fourth quarter, the sharpest drop since the fourth quarter of 2001. [Source: Wall Street Journal]

Republic takes over Mokulele -- Republic Airways, with a 50 percent ownership stake in Mokulele Airlines, replaced the head of the Hawaiian company with a Republic executive. The new Mokulele chief will be expected to be interim leader until a new CEO can be found. The Indianapolis-based Republic converted a large part of an $8 million loan to receive the half-ownership. The partnership between the two airlines started last October when Republic gave interisland carrier Mokulele four Embraer 170 jets and crew to be flown under the Mokulele brand. [Source: Honolulu Advertiser]

Continental Airlines trying for nonstop Houston-Rio de Janeiro flights -- Continental Airlines hopes to gain approval from the U.S. Department of Transportation for nonstop flights from Houston to Rio de Janeiro. The flight, proposed last September, would be the airline's first nonstop flight from Houston and the only year-round, nonstop service to Rio in the region. If approved, Continental could begin flying as early as June 1. [Source: Houston Business Journal]

Virgin America adds first-bag fees -- Virgin America lowered its change or cancellation fee from $75 to $50 and created a $15 fee for all checked bags in its main cabin for travel booked on or after May 5. Previous checked bag fees in first class and cabin select will also be lowered to $15 from $25 and $50. [Source: Virgin America]