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IN HAWAII
Aloha Airlines loan approved
Aloha Airlines received approval today of a federal guarantee to back $40.5 million of a $45 million private loan. The Air Transportation Stabilization Board said in a short statement it had "closed on a $45 million loan on behalf of Aloha Airlines."Aloha received initial approval of the guarantee Nov. 5. At that time, the ATSB -- set up to administer billions of dollars in loan guarantees to airlines suffering financially since the Sept. 11 attacks -- set out a number of conditions that Aloha would have to meet before getting final approval.
Aloha had no immediate comment after the approval came through late this morning, but said earlier it needed to reduce expenses as one of those conditions.
Last week, Aloha wrapped up new labor agreements with its four unions and said all 3,000 employees, union members and management alike, are taking pay cuts.
The ATSB also said in November it would need "certain structural and financial enhancements" from Aloha. Today's approval means that whatever conditions the board required have been met.
The ATSB offers only loan guarantees, not the loans themselves, but has been quite cautious because in the end, the loans could become a drain on U.S. taxpayers.
The board rejected one of the biggest applications, a request from United Airlines for a $1.8 billion guarantee for a $2 billion loan, on Dec. 4, throwing United into a bankruptcy reorganization.
ON THE MAINLAND
Holiday retail sales blitz fails to materialize
NEW YORK >> Despite bustling stores and malls during the last weekend before Christmas, retailers remained anxious and uncertain after a hoped-for sales bonanza failed to materialize.Many store owners disappointed by consumers' cautious buying are now looking with some desperation to last-minute shoppers and post-Christmas bargain hunters for some relief in what has been a difficult holiday season.
At K-B Toys Inc., "we are happy that we are holding ground, but we were really hoping for a higher increase" during the weekend, spokesman John Reilly said yesterday.
Analysts said other merchants had a similar story.
"It was a solid weekend, but retailers needed a spectacular weekend," said C. Britt Beemer, chairman of America's Research Group. "It was what I expected, but not what I hoped."
Kurt Barnard, president of Barnard's Retail Trend Report, believes sales at stores that have been open at least a year, known as same-store sales, could fall below his already reduced 2 percent forecast.
Retailers had a good start to the season with a better-than-expected sales during the Thanksgiving weekend, but sales subsequently were surprisingly weak. Analysts say consumers have cut back on their spending because of worries about job security and the economy's uncertain recovery.
Shoppers were searching for the best price, and retailers were accommodating them with deep discounts.
Oil prices surge to 2-year high
NEW YORK >> U.S. oil prices shot to their highest level in two years today as a freeze in supplies from strikebound Venezuela and the growing threat of war with Iraq deepened fears of a winter oil supply shortage.February crude on the New York Mercantile Exchange jumped $1.45 a barrel, or 5 percent, in regular hours to $31.75 per barrel. Prices then rose further in afterhours trade to hit a $32 a barrel peak, its highest since January 2001.
Brent crude oil futures in London climbed $1.38 to $29.72 a barrel.
Oil prices have risen 60 percent this year, jumping $7 in just the past month, heightening concern that higher energy costs could endanger a fragile economy.
Gas prices up 3 cents per gallon
CAMARILLO, Calif. >> Gas prices rose nearly 3 cents per gallon over the past two weeks, an industry analyst said yesterday.The average weighted price for gas nationwide, including all grades and taxes, was about $1.45 per gallon Friday, according to the Lundberg Survey of 8,000 stations nationwide. Gas cost about $1.42 a gallon on average on Dec. 6, the date of the last Lundberg Survey.
Nelly rules for motoring music
We've all seen them out on the highways and byways, the crooning commuters who make like Placido Domingo behind the wheel.But what are they singing now? In an online poll of 4,187 people, Yahoo! Auto asked which were the best driving songs of the year.
Nelly came in at No. 1, with 20 percent calling his tune "Hot in Herre" the best driving song, followed closely by Eminem's "Without Me."
Citigroup taking $1.5 billion charge
NEW YORK >> Citigroup Inc., the world's biggest financial services company, said today it would take charges of $1.5 billion to cover the cost of settling a conflict-of-interest probe and to guard against credit losses.Citigroup said the charges would lower its fourth-quarter earnings by 29 cents a share but might not be sufficient to cover investor lawsuits that may still be filed against the company.
Citigroup is due to pay $400 million as part of a broad settlement of charges that Wall Street brokerages issued tainted research and handed out hot stocks to favored clients. The largest U.S. brokerages agreed to pay $1.4 billion to settle charges that they put their own interests ahead of the interests of investors.
Kmart quarterly loss widens, outlook mixed
CHICAGO >> Kmart Corp. today reported a wider quarterly loss as store closings cut into sales and it took steep discounts in hopes of winning back customers after the discount retailer filed for bankruptcy.On a conference call with reporters, company officials said the quarterly results met internal forecasts, and they stood by a goal of emerging from Chapter 11 bankruptcy by summer 2003.
Julian Day, president and chief operating officer, said Kmart was analyzing its store base and would decide on further store closings "once we're able to take stock of holiday performance in January".
