Travel Roundup: MGM Mirage's CityCenter Lawsuit, Alaska Cancels For Erupting Volcano, Rise of Micro-Hotels and More

(MoneyWatch) 

Dubai partner sues MGM Mirage over CityCenter -- Infinity World reported that it is suing its CityCenter partner, MGM Mirage, to protects its investment and rights in the project. Infinity World is a part of Dubai World, a Dubai developer partnered with MGM Mirage in the $8.6 billion CityCenter complex on the Las Vegas Strip. Infinity says that recent statements about MGM Mirage's poor financial condition have breached their joint-venture agreement and is putting the project at risk. MGM Mirage is currently $13 billion in debt and announced the possibility of default and bankruptcy in its recent annual report. Dubai World owns a 50 percent stake in the CityCenter project. [Source: Associated Press]

Alaska Airlines cancels 19 flights because of volcano eruption -- Alaska Airlines cancelled 19 flights because of an erupting volcano near Anchorage. The airline called the cancellations merely safety precautions because of volcanic ash at high altitudes. About 50 flights operate out of Anchorage. [Source: San Francisco Business Times]

Micro-hotels rise in favor -- With a busted economy, travelers looking for low prices may accept the newest kind of lodging, the micro-hotel. The small rooms, some 7 feet by 8 feet, have success in Europe and are now being tried in urban areas like New York City, where hotel bargains are rare. One 150-room hotel, The Jane, designs the rooms to look larger and uses extra space for storage. The rooms also feature flat-screen TVs, wireless Internet, 350-count sheets and a few other amenities. However, many bathrooms are communal, which is a tough sell. [Source: Associated Press]

AirTran offering nonstop Atlantic City to Atlanta flights - AirTran Airways will begin nonstop flights from Atlanta to Atlantic City International Airport twice daily beginning in June. New Jersey Gov. Jon S. Corzine announced the agreement Monday which he said would help the city's struggling casinos. Three of the 11 Atlantic City casinos are in bankruptcy. [Source: Newsday]