Travel Roundup: Atlanta's Online Travel Lawsuit, Alaska Flies Around Volcano, Yahoo! Ends FareChase and More

(MoneyWatch)  Atlanta's lawsuit against online travel companies continues -- Atlanta's lawsuit against online travel companies, alleging they are withholding millions of dollars of hotel taxes, was upheld in Georgia Supreme Court. Now a Fulton County judge will decide the case, whether online travel companies are liable for the lost hotel and occupancy tax. The complaint says that the companies would buy blocks of hotel rooms at wholesale rates and sell them at retail rates -- making a profit -- but not paying retail-price hotel taxes. The suit, filed in 2006 against 17 online travel companies, includes Expedia.com, Travelocity, Hotels.com, Priceline.com and Orbitz. [Source: Atlanta Journal-Constitution]

Alaska resumes flights to Anchorage after volcano eruption -- Alaska Airlines resumed flights to and from Alaska after ash clouds cleared from the state's most recent volcano eruption. Thirty-five flights were canceled because of six eruptions from Mount Redoubt near Anchorage, but once the ash cleared, the airline decided to reschedule the flights. More eruptions could delay or cancel flights. [Source: Associated Press]

Yahoo! shuts down FareChase -- Yahoo! Inc. will be shutting down its travel Web site FareChase, redirecting its users to its main travel channel. Yahoo! bought the service in 2004 and relaunched it in 2006, which was supposed to help customers find the best prices on flights, hotels and rental cars, competing directly with other online travel companies, but Yahoo! Travel already uses Travelocity to book trips. The shutdown is a one of a series of cost-cutting measures by chief executive Carol Bartz. [Source: Silicon Valley/San Jose Business Journal]

Icelandair will fly nonstop from Iceland to Seattle -- Icelandair will start flying four direct flights a week on Boeing 757s from Iceland to Seattle. Officials at Icelandair said that SAS Airlines' recent decision to drop Seattle figured into their plans. About 100 jobs will be created when the carrier starts service July 22. [Source: Puget Sound Business Journal]