Hula Mae loans offering lowest interest rate ever

The state today began offering Hula Mae home mortgages at 5.76 percent, the lowest interest rate since the program to provide below-market interest rates for qualified first-home buyers began in 1979.

The 30-year fixed-rate loans are available through local banks and a number of other lenders to buyers who don't exceed maximum income limits. On Oahu, those limits are $87,640 a year for a family of three or more and $75,120 for a family of less than three. New homes must be priced at $241,480 or less and existing homes must be no more than $266,740.

The income limits and maximum prices are slightly lower on the neighbor islands.

In the Hula Mae program's 23 years, the state has issued about $1.7 billion in bonds to provide loans to nearly 9,800 low- and moderate-income families.

American, Continental streamline e-ticketing

Fort Worth, Texas >> AMR Corp.'s American Airlines and Continental Airlines Inc. will issue electronic tickets that customers can use to switch between the carriers if a flight on one of them is canceled.

The new tickets also will let customers of American, the world's biggest airline, and Continental, the fifth-largest U.S. carrier, use a single electronic ticket on trips that include travel on both carriers, the companies said in a statement.

Previously, passengers with electronic tickets had to get a paper ticket before transferring carriers.

American, which began issuing electronic tickets in September 1996, implemented a similar program with UAL Corp.'s United Airlines earlier this month, according to a Bloomberg News report.

Andersen pleads not guilty to obstructing justice

Houston >> Arthur Andersen LLP pleaded not guilty to criminal charges it obstructed a U.S. government investigation of Enron Corp.'s bankruptcy by illegally destroying documents relating to audits of the energy trader and will face trial starting May 6.

U.S. Magistrate Judge Calvin Botley accepted the plea at an arraignment in Houston, according to a Bloomberg News report. The criminal charge is the first filed in connection with Enron's demise and the first prosecution of a major accounting firm.

Andersen, Enron's auditor for 16 years, is accused of document shredding that is more widespread than the company admitted, according to the indictment unsealed last week. The company has said the indictment threatens its survival and has been looking for buyers to salvage parts of the partnership.

Andersen has said that a "few partners and employees" were responsible for the document shredding and that the management of the firm, led by Joseph F. Berardino, is blameless.

Northwest next to drop travel agent commissions

EAGAN, Minn. >> Northwest Airlines said yesterday that it would stop paying base commissions to travel agents for tickets issued in the United States, Canada, Puerto Rico and the U.S. Virgin Islands, effective immediately.

Delta Air Lines began the move last week, and American Airlines and Continental Airlines joined on Monday.

Northwest's new commission structure applies to tickets issued for both domestic and international travel. Tickets purchased outside the United States, Canada, Puerto Rico and the U.S. Virgin Islands are not affected.

Airlines are trying to cut ticket-distribution costs and drive customers from travel agents to their Internet sites. Ticket distribution is the fourth largest expense for carriers after labor, fuel and aircraft, according the Air Transport Association, the industry's trade group.

The airlines had cut agents' commissions six times since 1995.