Thursday morning headlines

American's mess: Another 900 flights were cancelled today, or about 40 percent of the airline’s daily total. That includes seven arrivals to LAX and all five flights leaving from Burbank (they'll be a bunch more later). The airline continues to re-inspect the wiring on its MD-80s, which account for nearly half of its fleet of full-size passenger jets. The impact isn't quite as severe at LAX as it is at American hubs in Dallas and Chicago, but that's not saying much. Lots of folks have griped about not being notified in advance of the cancellations (don't they read newspapers?). From the LAT:

At LAX, where American scrubbed 25 of its 92 scheduled departures, hundreds of travelers waited in a line that snaked through Terminal 4 to re-book their flights. American employees set out cartons of orange juice, bottled water and coffee on a nearby table and handed out slips containing an apology and an 800 number, but few customers were mollified. American Chief Executive Gerard Arpey, in Marina Del Rey to attend a conference of airline executives at the Ritz Carlton, apologized "for the inconvenience that we have caused our customers because of the continued inspections of our MD-80s."

Oil update: NY prices are little changed from the recent runups. The contract was off 51 cents at $110.36 a barrel on the New York Mercantile Exchange. The Energy Department is projecting that prices will average $101 this year, with $4-a-gallon gasoline a virtual certainty throughout Socal. That's despite a drop in demand. From the LAT:

Another reason for the surge was the flight of investors out of stocks and into oil and other commodities at a rate that "is unprecedented in terms of anything I have seen in 15 years on Wall Street," said John Kilduff, vice president of risk management at MF Global Ltd. in New York. Not every expert is convinced that oil will stay in the stratosphere. Some cited warning signs that prices could quickly fall below $100 again. "I keep hearing from professional traders who are getting out of the oil market because it is just too volatile," said Sean Brodrick, a Florida-based natural resource analyst for the e-mail investment newsletter Money and Markets.

Pellicano update:The government could wrap up its case today, with a few final witnesses expected to testify about the detective's investigation of Sylvester Stallone. Yesterday was the biggie, with one-time mogul Michael Ovitz testifying that he paid Pellicano $75,000 to dig up dirt on two reporters who he said made it “more than difficult” to sell his Artists Management Group. One of them, Anita Busch, broke down as she testified about what she said were threats on her life. (Huffington Post)

Yahoo-Microsoft battle: It's getting goofier by the hour. Now it seems as if Rupert Murdoch’s News Corp. is talking to Microsoft about some sort of joint bid for Yahoo. The deal would combine Yahoo, Microsoft’s MSN and News Corp.'s MySpace – kind of an Internet juggernaut. But not so fast - Yahoo is still talking to Time Warner's AOL about some sort of partnership that could deflect Microsoft's advances. Or is it News Corp.'s advances? (NYT)

New HBO chief: Sue Naegle, a senior executive at talent agency UTA, will become president of HBO Entertainment, responsible for developing and overseeing the cable network's original series and specials. Naegle's hiring comes three weeks after HBO said that it would replace Carolyn Strauss. The selection makes for a little awkwardness: HBO's upcoming vampire drama, "True Blood," was based on a deal arranged by Naegle at UTA. (WSJ, Deadline Hollywood Daily)

Relief for renters: L.A. County rent increases should average 2.5 to 3 percent this year, down slightly from 3.2 percent last year. While demand remains strong, prices should be contained because there's more supply out there - specifically condos that have gone unsold and are being converted to rental units. (Daily News)

Entrepreneur on the block: The OC-based business magazine has conducted a first-round auction, and among those in the hunt is Elevation Partners, the private-equity firm run by U2's Bono and Roger McNamee. The NY Post's Keith Kelly says the asking price is $200 million. Last year, Elevation paid $300 million for a 40 percent stake in Forbes Media.

LAX workers rally: A couple of hundred unionized janitors, security screeners, baggage handlers, wheelchair attendants and other airport service workers are looking for better pay, health benefits and job training. Airlines operating at LAX have contracts with private firms who hire airport service workers. More than 5,000 airport service workers statewide are represented by the Service Employees International Union. Contract talks are upcoming. (Daily Breeze)