Carnival Air Lines

Mercury Air, Carnival Air Agreement Canceled: Los Angeles-based Mercury Air Group Inc. shares fell 7.1% after the company canceled an agreement to acquire Carnival Air Lines Inc. of Ft. Lauderdale, Fla., when the companies failed to agree on terms. Shares closed down 68.75 cents at $9 on trading of 59,300 shares, more than four times its three-month daily average of 12,600.

Pan American World Airways and privately held Carnival Air announced a merger in a deal that would give Carnival's billionaire owner Micky Arison a 42% stake in Pan Am. Arison is kicking in $30 million for the controlling stake and would put Pan Am's famous blue-globe logo on Carnival Air's larger fleet. Pan Am also would issue $30 million in new stock to create a $60-million fund to refurbish Carnival Air's jets, buy a leased Miami headquarters and probably buy more jets.

Carnival Air Lines is scheduled to begin nonstop flights between Los Angeles and Miami on Oct. 2. The service is part of a "code sharing" arrangement that is timed to connect with Iberia Airlines' flights from Miami to Latin American business destinations. Wyndham Hotels is giving special perks to business travelers until Dec. 31. Included are room upgrades, double miles in the American AAdvantage frequent-flier program, a car upgrade from Hertz and a one-class upgrade on American Airlines.

Pan Am, Carnival Agree to Merge: The agreement "means that we get to do some of the things we described in our Pan Am plan a lot sooner," Pan Am President Martin Shugrue said. Miami-based Pan American World Airways, the start-up carrier that bought the name of the former Pan Am, has three planes and plans to fly initially to New York, Los Angeles and Miami. It is awaiting approval from government regulators to begin flights later this summer.

Pan Am, Carnival Agree to Merge: The agreement "means that we get to do some of the things we described in our Pan Am plan a lot sooner," Pan Am President Martin Shugrue said. Miami-based Pan American World Airways, the start-up carrier that bought the name of the former Pan Am, has three planes and plans to fly initially to New York, Los Angeles and Miami. It is awaiting approval from government regulators to begin flights later this summer.

Pan American World Airways and privately held Carnival Air announced a merger in a deal that would give Carnival's billionaire owner Micky Arison a 42% stake in Pan Am. Arison is kicking in $30 million for the controlling stake and would put Pan Am's famous blue-globe logo on Carnival Air's larger fleet. Pan Am also would issue $30 million in new stock to create a $60-million fund to refurbish Carnival Air's jets, buy a leased Miami headquarters and probably buy more jets.

Nine small airlines have formed a lobbying group, the Air Carrier Assn. of America, to fight what they call unfair competition by the major carriers. The ACAA will represent its members on issues in Congress and at the regulatory agencies, said Ed Faberman, counsel for the trade group in Washington. Members of the group include Frontier Airlines, Reno Air, ValuJet, Arrow Air, AirTran Airways, Carnival Air Lines, Spirit Air Lines, Sun Jet International and Laker Airways. The major U.S.

Carnival Air Lines has begun offering passengers first-class upgrades on its daily flights between Miami and Los Angeles for $99 each way. The offer is available only on a stand-by basis at the ticket counter and is based on availability. Tourist fares on this route start at $209 each way. First-class fares usually range from $539 to $1,180; Carnival planes have 18 first-class seats.

Chula Vista-based Rohr Inc. said a lawsuit seeking class-action status was filed against the firm, the members of its board and BF Goodrich Co. arising out of the recently announced merger agreement between the companies. . . . Stockholders of Pan Am Corp., a new airline with a venerated name, voted their approval of the carrier's $62-million acquisition of Carnival Air Lines Inc. . . . Lucent Technologies Inc.'s $1.8-billion purchase of Octel Communications Corp.

Carnival Air Lines will debut the only nonstop service between Los Angeles International Airport and Fort Lauderdale-Hollywood International Airport in Florida on Jan. 19. Introductory fares start at $199 each way. Stand-by first-class upgrades are $99 if available at check-in. Flights, operating daily except Tuesdays and Wednesdays, will depart Los Angeles at 11 p.m., arriving in Fort Lauderdale at 7 the following morning. Flights from Fort Lauderdale to Los Angeles will depart at 12:30 p.m.

Mercury Air, Carnival Air Agreement Canceled: Los Angeles-based Mercury Air Group Inc. shares fell 7.1% after the company canceled an agreement to acquire Carnival Air Lines Inc. of Ft. Lauderdale, Fla., when the companies failed to agree on terms. Shares closed down 68.75 cents at $9 on trading of 59,300 shares, more than four times its three-month daily average of 12,600.

Carnival Air Lines is scheduled to begin nonstop flights between Los Angeles and Miami on Oct. 2. The service is part of a "code sharing" arrangement that is timed to connect with Iberia Airlines' flights from Miami to Latin American business destinations. Wyndham Hotels is giving special perks to business travelers until Dec. 31. Included are room upgrades, double miles in the American AAdvantage frequent-flier program, a car upgrade from Hertz and a one-class upgrade on American Airlines.

Cheap fares aren't the only thing that keeps air travelers happy--most are also looking for comfortable seats, punctual flights and pleasant service, according to a survey released Wednesday. In Consumer Reports' annual airline appraisal, Midwest Express came out on top for its outstanding service, roomy seats, on-time performance and efficiency. The Milwaukee-based carrier, which is owned by Kleenex-maker Kimberly-Clark Corp.