Hula Mae loans see their lowest interest rate ever

The state has begun 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.

Hawaiian Airlines adds options to Web site

Hawaiian Airlines says it has experienced a steady increase in online bookings since its redesigned Web site, www.hawaiianair.com, went into service in mid-February. The site has a new "quick flight reservations" facility and also provides discounts for those who book online.

Customers booking through the Web site on any scheduled Hawaiian Airlines flight get a 5 percent discount and other offers, such as discounted one-way fares, are available for online bookers, Hawaiian said. The home page has been redesigned to focus on four key areas -- Web fares; air, hotel and car packages; Hawaiian Miles for the frequent fliers; and visitor information.

There is also a new group travel section for those who want to book groups and gain discounts and other incentives that way.

CSFB reduces Bankoh first-quarter estimate

Credit Suisse First Boston Corp. has reduced its first-quarter estimate for Bank of Hawaii parent Pacific Century Financial Corp. but maintained its "hold" rating on the company.

Analysts Rosalind Looby, Kerry Hueston and Brian Schultz said in a preview report that they were trimming their earnings-per-share forecast by 2 cents to 37 cents to reflect "the bank's more gradual pace of share repurchases during the quarter."

"We estimate that BOH has repurchased approximately 700,000 shares since year-end, below our 3 million expectations. This EPS result would represent a 37 percent sequential increase, but an 8 percent decline from the year-earlier quarter, reflecting the bank's far-reaching restructuring in 2001."

Pacific Century's stock, which closed up 2 cents today at $27.21, is up 5.1 percent this year. Of the nine analysts listed by Bloomberg News who cover the stock, four rate it as "buy," three as "hold" and two as "sell."

United Airlines, US Air end agent commissions

CHICAGO >> United Airlines and US Airways Group Inc. scrapped most commissions paid to travel agents in the U.S. and Canada, joining rivals in the cost-cutting move as more people use the Internet to book flights.

American Trans Air also matched the change, while Vanguard Airlines Inc. said it would keep paying a 5 percent commission. Last week, Delta Air Lines Inc. began the change and was followed earlier this week by American Airlines, Continental Airlines Inc. and Northwest Airlines Inc.

Dropping the commissions is expected to save U.S. airlines about $1 billion a year, analysts estimated. The carriers are moving to sell more tickets through Internet sites, which reduces their costs.

In other news . . .

CHICAGO >> Kmart Corp., the largest retailer to seek Chapter 11 protection, won a federal bankruptcy judge's approval to close 283 stores and hold going-out-of- business sales that could bring it more than $500 million.

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