MGM Grand Inc. said yesterday it will abandon its “all-frills” scheduled airline service between Los Angeles and New York at year end, grounding an ambitious personal vision of owner Kirk Kerkorian.

The Las Vegas-based company, which also operates hotels and casinos, said it will concentrate instead on expanding its worldwide charter airline business, which it launched in 1989.

Chuck Demoney, president of the airline subsidiary, said “irrational competition” and the recession had hammered the entire industry.

Meanwhile, MGM Grand’s charter revenues have grown at an annual rate of 89%, to $ 18 million this year, and promise to rise another 50% next year, he said.

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