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Virgin America CEO David Cush believes flying doesn’t have to be painful. He remembers when boarding a plane was exciting and wants to bring back that joy.

That is why every job applicant, including pilots, flight attendants and baggage handlers, takes a personality test. He wants employees who are hard-wired with positive outlooks on life.

Virgin America, which is partly owned by Richard Branson, the founder of the edgy British airline Virgin Atlantic, doesn’t aim to be the biggest carrier. It only flies between big cities, such as Los Angeles, Chicago and Boston, serving about 5 million passengers annually _ a tiny fraction of the size of major airlines like Delta and United.

But Cush wants Virgin America to be recognized for superior quality _ and he appears to be succeeding. The airline, based near San Francisco, has routinely ranked at the top of customer surveys.

The past month has been a little rocky, though. Since the airline switched to a new reservation system on Oct. 28, customers have not been able to change or cancel flights online or select seats on Virgin America’s website. Instead, they’ve had to call the airline or wait until they got to the airport. Cush emailed a letter to the 56,000 passengers affected apologizing for the problem and the airline says it hopes to have it fully resolved by the first week in December.

Virgin America’s fleet is made up of brand-new Airbus A319s and A320s, fuel-efficient aircraft that seat 119 and 146. Each is equipped with TVs for every passenger, colorful mood lighting and Wi-Fi. Instead of flight attendants dictating meal times, passengers buy food when they want it by pressing a few buttons on their TV.

“If you talk to people about what is most frustrating about air travel, what comes out is the loss of control,” Cush says. “We’ve been pushing to give people control again.”

Virgin isn’t the first U.S. airline to use TVs and friendly service to attract customers. Cush acknowledges some copying as he works to create the California version of New York-based JetBlue.

“JetBlue came around and had a different type of service. That opened my eyes,” he says.

But his quest to create a fun airline has been stymied by more serious concerns like high fuel prices and a recession whose impact is still being felt.

Since it started flying in August 2007, Virgin America has lost $661.4 million. Cush expects to become profitable in 2012, a year later than originally planned.

The privately held company is owned by a New York hedge fund, Richard Branson’s Virgin Group and private investors, including Donald J. Carty, the former head of American Airlines’ parent company, AMR Corp.

Cush, 51, spent most of his career at American and left to head up Virgin America just four months after the airline started flying.

The Shreveport, La.-native is a graduate of Southern Methodist University _ yet a giant Louisiana State University football fan.

In his spare time, Cush likes to swim and fish. In college, he was a DJ, spinning Bruce Springsteen and Pink Floyd tunes.

Cush visited The Associated Press in New York. Below are excerpts, edited for clarity, of the interview where he spoke about the health of American, his favorite seat and why risk-taking is necessary to survive.

Q: How is Virgin America different?

A: The biggest difference is our in-flight entertainment system. It’s a nine-inch screen _ larger than JetBlue. We’ve got live TV, on-demand movies, about 3,000 MP3s. We have food and drink on-demand. We’re the only airline in the world that has it. You order from the seatback, swipe your credit card. They see seat 12C wants a turkey sandwich and a Heineken and bring it to you on a tray. Carts aren’t blocking the aisles.

Q: Who came up with that?

A: This was designed before my time but as I tell people, as time goes on and memories fade it will become my idea.

Q: How much more are people willing to pay for these services?

A: The model is getting them to pay the same amount with a much lower production cost.

Q: How can you attract business travelers when your miles can’t be redeemed for Hawaii, Europe or other places you don’t serve?

A: The mile problem will be solved early next year. We have basic agreements with Virgin Atlantic and Virgin Australia that will be fully reciprocal. We also have agreements with Cathay Pacific, Singapore and Emirates that will develop into frequent flier relationships.

Q: In Dallas, you’re telling fliers to “dump your older airline for a younger, hotter one.” American responded by slashing fares to San Francisco and Los Angeles. Can you survive this fare war?

A: We’ll survive. At current fares, it will not be a profitable route but it wouldn’t be such a loss-making one where we would consider any type of reduction. You have to be in Dallas-Fort Worth if you’re going to be a business airline.

Q: In one ad you refer to American as running a cattle car. If you feel that way, how could you have worked there for 22 years?

A: It wasn’t always that way. The industry, out of survival, did a lot of things. One of the reasons I left was because I didn’t think the industry had to operate that way.

Q: Why did you get into the business?

A: I don’t think anyone knows why they get in unless they are a pilot or an aviation enthusiast. I wanted to live in Dallas. American was a big employer. Young, single, the ability to fly around anywhere you wanted to, it all sounded pretty good. Once you get in, you find it so intellectually demanding that you can’t see yourself doing anything else.

Q: Do you think that American is on the right path?

A: It’s hard to tell. There’s a culture there that is perhaps a bit risk-averse. In the past, it was always an airline that was willing to accept risk. The industry’s consolidated around it and all of a sudden American finds itself in third place. I don’t know if they have the answer. I do know their top guys. They’re smart, capable but at some point you need to stick your neck out a little bit if you’re going to get out of a rut.

Q: Are you a risk-taker?

A: Absolutely. But I don’t take unnecessary risk and I always have an exit strategy.

Q: Mile for mile, airplanes burn more fuel than cars, trucks or trains. Do you think this poses a problem for the industry?

A: If we don’t find a way to clean up air travel, we’ll become a pariah. We’ll be what the coal companies used to be.

Q: You’re in 14 markets. Where would you like to fly to next?

A: We’ve been trying to get into Newark, (N.J.) since the day we started. This is a huge policy issue _ slots and gates are tied up by legacy carriers. The economics of keeping us out of Newark are huge for United so they’ll fly unprofitable (regional jets) just to occupy slots. When we go into markets, fares drop by 30 or 40 percent.

Q: When you fly your own airline you always pick the second row of coach. Why?

A: I get to watch the interaction between our in-flight teammates and the customers in first. It’s a nice seat, 4A.

Q: A window.

A: I’m a window guy. Our in-flight entertainment system has Google Maps. You zoom in when you see something on the ground you’re interested in.

Q: How would you describe yourself as a boss?

A: I’m probably a tough guy to work for. I’m pretty demanding and part of the reason is the airline business is a demanding business. We have very little margin for error in building this into a successful company. We have 2,500 people that rely on us for a paycheck.

Q: Do you ever get overshadowed by Richard Branson?

A: All the time. People want to talk to him, they want to see him. When he’s around, I’m just the hired help.

Q: How much patience do you have for unprofitable routes?

A: We stopped service to two different places. One because we needed the aircraft, that was Orange County, (Calif.). We didn’t see that as a big strategic need. The other is Toronto. We misjudged the market.

Q: Did you fire the guy who pushed that route?

A: That was me, so no.

Q: In ten years, do you see Virgin America being a full-blown national airline?

A: That’s not our goal. The biggest discipline we need to have is not outgrowing the model. That means maybe 100, 150 aircraft, probably no more. The goal would be to be consistently profitable, the highest quality airline where we can hopefully make a few hours of people’s day a little bit nicer.

Q: Will you go public?

A: As much as it’s nice being private _ because you don’t have to manage to the short term and there are a lot of burdensome regulations that come from being public _ ultimately we need to (do an initial public offering.) It’s a capital-intensive business. We need to tap public markets and our investors want to take some money off the table. It could be 2013 if the market is ready.

Q: How do you unwind after leaving the office?

A: I do a lot of yoga. It’s a nice way to separate the mind from what you’ve gone through all day.

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India’s privately owned Kingfisher Airlines was forced to cancel dozens of flights Friday amid a burgeoning crisis at the country’s second-largest carrier.

Kingfisher, which is partly owned by brewery tycoon Vijay Mallya, has canceled more than 120 flights this week as pilots and crew called in sick after their October salaries were delayed.

The airline says flights were canceled because it was reconfiguring planes, the Press Trust of India reported. The Economic Times reported that leasing companies want Kingfisher to return their planes after the company fell behind on payments.

Kingfisher shares slid more than 12 percent on the Mumbai stock market Friday.

India’s airline industry has been hit by rising fuel costs and a crushing price war. Kingfisher is currently struggling under debt of $1.4 billion and shut down its budget carrier in September after it ran up losses payday loan lenders.

The airline, which began operations in 2005, bought India’s first budget airline Deccan Airways in 2008, leading to the creation of its budget wing, Kingfisher Red.

Kingfisher’s problems have worsened after three oil companies stopped giving it jet fuel on credit and asked the airline to make daily payments.

The airline has grounded eight of its leased turboprop ATR aircraft, and returned 14 leased A320 jets, leaving it with fewer aircraft in its fleet.

The cash-strapped airline has also piled up unpaid fees to airport operators and other agencies who are now adding to its financial pressures.

Kingfisher has said it is restructuring its operations.

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Greece’s incoming prime minister is due to name his cabinet Friday, a day after being appointed to head an interim coalition government that will push through a new European debt deal and secure continued bailout funding to prevent a catastrophic default.

Former European Central Bank vice president Lucas Papademos held talks with the country’s main political parties late into Thursday night to determine who would staff his cabinet, ahead of the formal swearing in early Friday afternoon.

Papademos’ appointment capped two weeks of a political crisis that threatened to derail an EU plan to get a grip on the Greek debt crisis and raised questions about the country’s continued presence in the eurozone.

He was named to take over from outgoing prime Minister George Papandreou, who agreed to step aside half way through his four-year term.

Although the composition of the new cabinet had not been announced by midmorning, many key ministerial positions were expected to remain unchanged, with Finance Minister Evangelos Venizelos widely expected to retain his post.

Venizelos was deeply involved in negotiating the latest debt deal _ a package agreed as recently as Oct. 27. The euro130 billion ($177 billion) debt deal took months to work out, and includes provisions for private bondholders to forgive 50 percent _ or some euro100 billion _ of their Greek debt holdings.

The latest political turmoil was sparked by Papandreou’s Oct. 31 surprise announcement that he would put the deal to a referendum. His plan infuriated European leaders, rocked global markets and led many of his own Socialist party lawmakers to rebel and call for his resignation.

Papandreou withdrew the public vote plan after the main conservative opposition said they backed the deal, and agreed to step aside.

After days of intense power-sharing talks, Papandreou’s Socialists and the conservatives, led by Antonis Samaras, along with a smaller right-wing party, appointed Papademos as interim premier.

Papademos’ government will be called on to pass the debt deal and secure the next euro8 billion installment of the country’s initial euro110 billion bailout. Without the funds, Greece will default in a matter of weeks.

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The world’s largest brewer Anheuser-Busch InBev NV said Wednesday its third-quarter profits rose by over 16 percent, largely on the back of the continued popularity of global brands like Stella Artois and Beck’s.

Despite a slight overall decrease in overall volume, the Leuven, Belgium-based company reported that its normalized profit attributable to equity holders grew 16.3 percent to $1.73 billion in the quarter compared with last year’s equivalent of $1.49 billion.

It says its revenue grew by 3.6 percent in the third quarter even though volumes decreased by 0.2 percent.

In the United States, it said that the share of Budweiser continued to decline although at a slower pace than previously. However its focus brands Bud Light, Michelob Ultra and Stella continued to grow. Overall in the U.S., the company said volumes continued to be “impacted by weak consumer confidence” and were slightly down.

A-B InBev held out hope that Bud Light would continue to grow, especially in the light of a new contract with the National Football League and the marketing opportunities American football entails.

“There are indications that the brand is starting to benefit from the new NFL sponsorship,” the company said.

Globally, Budweiser last month also extended its sponsorship of the World Cup through the 2018 edition in Russia and the 2022 event in Qatar.

That soccer contract should also pay off in Brazil over the coming years as the nation hosts the 2014 World Cup. And it will be further boosted by the activity and excitement that the 2016 Olympics in Rio will create.

The company also did well in China where Budweiser, Harbin and the regional brand Sedrin have had a combined growth of 13.6 percent in the third quarter. Overall, A-B InBev beer volumes grew by 4.7 percent in China over the third quarter.

 

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A top bank lobbyist insisted Saturday that banks and the eurozone are far from reaching a deal to cut Greece’s debt, despite claims by eurozone finance ministers that they will ask banks to take steeper losses on their Greek bonds.

Although the ministers did not say how much of a cut they are aiming for, a report from Greece’s international debt inspectors suggested that the value of Greece’s bonds may have to be slashed as much as 60 percent to get the country solvent enough to repay its debt.

The ministers on Saturday sent their chief negotiator, Vittorio Grilli, to start discussions with banks and other private investors on a new deal for Greece.

However, Charles Dallara, the managing director of the Institute of International Finance, which has been leading the negotiations, said in an interview with The Associated Press that an agreement remained elusive.

“We’re nowhere near a deal,” he said.

Banks in July agreed to accept 21 percent losses on their Greek bonds. However, eurozone leaders have since reopened the deal and Greece’s international debt inspectors _ the so-called troika of the European Commission, the European Central Bank and the International Monetary Fund _ have said that Greece’s economic situation has deteriorated dramatically since the summer.

They said that under the July deal, Greece would need an extra euro252 billion ($347 billion) in loans from the eurozone and the IMF _ on top of the euro110 billion ($152 billion) it has been relying on to pay bills since May 2010.

But Dallara said new plans to slash Greece debt would still leave the country as “a ward of Europe” for years.

He declined to say how much in losses banks would be willing to accept, saying only “we would be open to an approach that involves additional efforts from everyone payday loan no faxing.”

Dallara was in Brussels, where eurozone finance ministers have been meeting for two days of talks.

Earlier Saturday, an EU official said EU finance ministers neared agreement on forcing banks to raise just over euro100 billion ($140 billion) to ensure they have enough cushion to weather further losses on their Greek bonds as well as market turmoil.

Strengthening banks and slashing Greece’s debts are critical to solving Europe’s crisis, which is now threatening to engulf larger economies like Italy and Spain and is blamed for dampening growth across Europe and even the world.

“The crisis in the eurozone is doing real damage to many of the European economies, including Britain,” George Osborne, Britain’s chancellor of the exchequer, said as he headed into Saturday’s meeting. “We have had enough of short-term measures, sticking plasters that get us through the next few weeks.”

The European official said EU leaders meeting Sunday should sign off on forcing the continent’s biggest banks to raise just over euro100 billion in capital. The official spoke on condition of anonymity because the discussions between ministers were still ongoing.

The figure is likely to disappoint some analysts. A report by the International Monetary Fund has called for up to euro200 billion ($280 billion) to be poured into banks.

The new rules would force systemically important banks to raise their core capital ratios to 9 percent, compared with just 5 percent to 6 percent they needed to pass EU stress tests this summer. The ratio measures the amount of capital banks hold compared to their risky assets.

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The launch of the iPhone 4S was executed at the Toronto Eaton centre with usual military precision and near-religious fervour. Already, some products are sold out.

On Friday morning the store front was a sort of shrine, decorated with flowers and multicoloured post-it notes bearing messages for the late leader, Steve Jobs.

“Thanks for my Christmas gifts,” wrote Ashley. “Thank you Steve Jobs you are in the iClouds now,” wrote another.

“iSad,” said someone else.

More: Five reasons to avoid the new iPhone 4S

More: Apple co-founder Wozniak first in line for new iPhone

More: Glitches raise ire of iPad, iPhone users

The line began Thursday. Mo Bastaki, a 22-year-old accountant, arrived around 6 p.m. This launch is special, says Bastaki, “It’s the last product Steve was alive for.”

But Bastaki, along with some hundred other people, was thrown out of the centre into the rain at 2 a.m.

When they were let back in three hours later, it was a Lord of the Flies affair payday loans. “All these guys who weren’t in line, got in line,” he says.

For some, the exercise is a cultural one. “We come here to feel the environment,” says Xianwen Zhang, a 22-year-old Chinese student from Zhejiang studying with his friends at Humber College, “This does not happen in China.”

It’s a business opportunity for others. One American woman (who wished to stay anonymous) is buying 16 phones for her Russian friends, who pay her to fly back and deliver the goods. “I get to see my brother and friends,” she says.

At six in the morning, blue-shirted Apple employees gave out white tickets, embossed with a perfect silver Apple on top. A ticket equals one phone.

In under two hours, the 32 g white phone had sold out. “If you were thinking white,” said Apple employee Brandon R to people at the end of the line, “maybe think black.”

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The details of a competing proposal for an outlet mall in Chesterfield were unveiled this morning.

Standing before a rendering of the proposed “Spirit of St. Louis Outlets,” the backers of the plan said the mall would be an $85 million, 555,000 square foot development on the south side of Highway 40, just east of the Daniel Boone Bridge.

They plan to submit plans to Chesterfield in December and hope to break ground by next summer with an opening date planned for the fall of 2013.

But the development is not yet a sure thing. After all, there is a competing proposal by Michigan-based Taubman Centers, which has formed a joint venture with Outlet Partners, to build an open-air, 500,000 square foot center along the North Outer 40 Drive, just east of Boone’s Crossing.

Stephen Coslik, chief executive of Texas-based Woodmont Outlets which is behind the Spirit of St. Louis proposal, said they should know in the next six months which project will actually be developed.

“At the end of the day, you’ll have one outlet mall,” he said.

The backers of the Spirit St. Louis project said they think their proposal is more attractive because it is large enough to have a racetrack sort of mall layout, has good visibility from the interstate, and is far enough from Chesterfield Mall (about 6 miles) that it would not siphon off sales from the other mall.

They also noted that the land they plan to build on has already been zoned for commercial use. The other project goes before Chesterfield’s planning commission next week to get approval for a zoning change for its proposed development.

One of the other keys will be which project gets the most desirable retailers to come on board. Neither project has yet announced any retailers who have committed to their project.

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Rebuffing an election boycott by Shiite protest groups, supporters of the country’s Sunni rulers voted in a special parliamentary election that is likely to reinforce divisions after seven months of unrest in the Gulf’s main Arab Spring showdown.

Bahrain’s confrontation between a reform-seeking Shiite majority and Sunni rulers holding near-total power remains one of the trickiest puzzles for the West as the Middle East’s politics are redrawn.

The Shiites’ calls for a greater say in national affairs echoes the same notes as in other Arab nations whose uprisings gained clear Western support. But Bahrain’s Sunni rulers have strong cards that most others cannot play, including a critical military partnership with Washington as hosts to the U.S. Navy’s 5th Fleet _ the Pentagon’s front-line force against potential threats from Iran.

“This is a fake election. It’s useless,” said one man among a group of young Shiites gathered in streets littered with trash, rocks and tear gas canisters from clashes the night before.

“We don’t have any stake in the political system anymore,” said the man, who only gave his first name, Ali, fearing retaliation by the authorities.

The elections were needed to fill 18 seats in the 40-member parliament left vacant by a mass resignation of Shiite lawmakers to protest crackdowns, including deadly clashes, arrest sweeps and workplace purges. The boycott call by the main Shiite blocs effectively turned their backs on Bahrain’s political system and staked their hopes in an embarrassingly low turnout at the elections.

But Bahrain’s state TV announced the turnout at 51 percent in the districts with open seats _ lower than the 67 percent turnout in last year’s full parliamentary election, but an apparent strong reply against the boycott.

Most of the voters who turned out Saturday appeared to be supporters of the government.

Full results are expected by early Sunday. But the most important outcome was already determined by the Shiite boycott: The opposition must now decide whether to escalate public protests as their best remaining option.

“Leaving the political process opens up the obvious question of where to go from here,” said Toby Jones, an expert on Bahraini affairs at Rutgers University. “This opens the door for groups calling for more confrontation.”

More than 30 people have died in the unrest and hundreds have been arrested, including activists sentenced to life in prison after being convicted of plotting to overthrow the ruling system.

In recent months, Bahrain has faced near daily skirmishes after security forces crushed a wave of large-scale marches and sit-ins inspired by other Arab uprisings. The current clashes are isolated in Shiite neighborhoods and pose no direct danger to the leadership. But they highlight the deep frustrations among many Shiites _ who account for about 70 percent of the population _ and the growing belief in poorer districts that mass protests are the only way to force change.

Hours after the voting ended, clashes raged in some mainly Shiite areas into early Sunday.

Shiites claim they suffer widespread discrimination, including being blocked from top political and government posts. They also bristle at daily evidence of perceived second-class status, such as security forces bringing aboard Sunni Muslims from other Arab nations and south Asia under a government program that grants citizenship in exchange for loyalty.

“Each side sees itself as the legitimate voice of the country and the others as those standing in the way,” said Jones. “The election just drives home this message. It’s political theater on both sides to make a point.”

Security was boosted to high-alert levels for the election. Police set up dozens of checkpoints and patrolled key roadways.

An election coordinator, Brig. Abdullah bin Saif Al Nuaimi, said several arrests were made for trying to disrupt the voting, including throwing stones at cars coming to polling stations.

The voting in predominantly Shiite areas appeared light. At one polling station in the Manama neighborhood of Sanabis, which has been the scene of clashes since Friday, only about 30 ballots were cast in the first four hours of voting.

But at a polling station in Hamad Town, a mixed Sunni-Shiite area, the voting was noticeably stronger with a steady stream of people. Voting was also brisk at special locations, including a mall in the capital, Manama.

Bahrain’s parliament has little direct powers, but it carries important symbolism as part of limited political reforms started about a decade ago. It also is one of the few popularly elected bodies permitted by the Arab kings and sheiks who rule the Gulf from Kuwait to Oman.

“It was my duty to vote and show I have solidarity with the leaders of Bahrain,” said Samira, a 32-year-old Sunni, who only gave her first name for fear of being harassed after she voted in Sanabis.

Bahrain’s prime minister, Prince Khalifa bin Salman Al Khalifa, claimed the voting “asserted that we are on the right path toward a better future.” A government-issued guide to the elections carried the heading: “From anarchy to action.”

The U.S. has urged all parties in Bahrain to restart reconciliation talks, which were opened by the government in July and produced a set of proposals that included boosting the powers of the parliament. But the U.S. has been careful not to reprimand Bahrain’s leaders too harshly in public to avoid jeopardizing strategic bonds in the Gulf.

Bahrain has the backing of powerful neighbors. A Gulf force, led by Saudi Arabia, was dispatched to Bahrain in March to help prop up the 200-year-old Sunni dynasty.

But the protests across the region have stirred some small steps toward more political openness.

The United Arab Emirates also held elections Saturday for seats on a national advisory council, which has no legislative powers but is promoted by Emirati officials as part of a widening “experiment” in allowing a greater public voice in affairs. The UAE’s elections will be decided by about 129,000 hand-picked voters.

Next week, Saudi Arabia plans to hold municipal elections after a nearly two-year delay. Women, however, will be still barred from participating or voting.

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Greece and other advanced economies need the political will to implement unpopular budget cuts, Canada said on Monday, comparing today

Wholesale businesses boosted their stockpiles for a 19th consecutive month in July, but their sales were flat. Faltering demand could force businesses to cut back on orders when the economy is at risk of another recession.

The Commerce Department said Friday that wholesale inventories rose 0.8 percent in July. Sales were unchanged, the poorest showing since a 0.3 percent drop in May.

Weakening sales could shake business confidence and cause them to cut back on their restocking. Still, economists say sales will rebound in coming months as the economy mounts a modest recovery from extremely weak growth in the first half of this year.

In July, the ratio of inventories to sales increased slightly to 1.17 from 1.16 in June. That means it would take 1.17 months to exhaust the current level of stockpiles. That ratio is very close to the record low of 1.13 hit in March.

Leaner stockpiles typically suggest wholesalers will boost factory orders in the months ahead. But that is largely dependent on sales.

The economy expanded at an annual rate of just 0.7 percent in the first six months of the year, the slowest growth since the recession officially ended two years ago. Employers did not add any net new jobs in August. Slower growth and poor hiring have raised concerns that the economy could fall back into a recession.

President Barack Obama on Thursday called on Congress to pass a $447 billion package to boost job growth. The plan includes a deeper Social Security tax cut, an extension of long-term unemployment benefits, and tax cuts for businesses that hire workers that have been unemployed for at least six months, and more spending on schools, roads and other public works.

U.S. manufacturing has been one of the strongest sectors of the economy since the recession ended. Efforts by businesses to restock depleted shelves have fueled much of that factory production.

But factory activity weakened in the spring, in part because of supply chain disruptions caused by the Japan crisis. As a result, U.S. manufacturers have had a difficult time getting component parts, particularly for autos and electronics.

Autos production and sales increased this summer, a sign that those disruptions may be easing.

Still, the Federal Reserve last month said it expects the economy will stay weak for the next two years. As a result, it said it planned to keep interest rates at super-low levels for at least through mid-2013.

The Fed next meets on Sept. 20-21. Federal Reserve Chairman Ben Bernanke said in a speech Thursday that policymakers will consider a range of options to support the economy at that meeting which was expanded from one to two days to provide more discussion time.

Some economists expect the Fed will increase the percentage of long-term Treasury securities it holds as a way to exert further downward pressure on long-term interest rates.

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