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Business Briefs

Reported by Star-Bulletin staff & wire

Thursday, June 29, 2000

Cheap Tickets hurt by airlines' plan

Shares of Honolulu-based Cheap Tickets Inc. and competitor Priceline.com Inc., both specialists in bargain travel, fell sharply today after a report that six major airlines are developing a Web site of their own to sell low-priced tickets.

Cheap Tickets, which sells travel through a Web site and sales offices across the country, fell $2.56, or 19 percent, to close at $10.94 in Nasdaq trading. Norwalk, Conn.-based Priceline, which lets Internet customers bid on air tickets and other services, was down $3.37, or 8.4 percent, at $36.81, also on Nasdaq.

The Wall Street Journal reported that the airline group, which includes United and American airlines, is investing in a Web site expected to start up this year as Hotwire.com. The San Francisco-based venture, begun in secrecy under the code name Project Purple Demon more than a year ago, has 50 employees and $75 million in initial funding, the Journal said. The site is expected to start doing business this year as Hotwire.com.

Halekulani manager heads new division

Patricia Tam has been named vice president of Halekulani Corp., which owns and manages both the Halekulani Hotel and the Waikiki Parc, to head a new brand-management division, Hotels & Resorts of Halekulani. Her previous post, general manager of the Halekulani, is being filled by Fred Honda who joined Halekulani Corp. last year as director of operations. He previously was the general manager of the Kapalua Bay Hotel on Maui. Tam's division will be responsible for managing, developing and expanding the Halekulani brand.

In other news . . .

McLEAN, Va. -- The rate on a 30-year mortgage rose for the first time in six weeks, mortgage broker Freddie Mac said today. The 30-year, fixed-rate mortgage increased to 8.22 percent this week after declining a week earlier to 8.14 percent. The average rate on a one-year adjustable mortgage rose to 7.26 percent from 7.22 percent. The average 15-year mortgage rate rose to 7.92 percent from 7.85 percent.