Business Briefs
Reported by Star-Bulletin staff & wire




United to trim two daily flights

After the year-end holidays are over, United Airlines said it will temporarily trim a daily round-trip flight between San Francisco and Kahului, Maui, and another flight between San Francisco and Kona, to cope with low traffic.

The cuts will take effect from Jan. 7 to Feb. 12, said United spokesman Joe Hopkins.

"It's just a short term because traffic is lighter after the Christmas-New Years' holiday period ... so we're just trying to match capacity with demand," Hopkins said.

Both flights are served by 182-seat Boeing 757 aircraft. United currently runs three daily round-trip flights on the Kahului route, and two on the Kona route.

Social Security office in Kapolei

The Social Security Administration is moving its Pearl City office to Kapolei beginning today.

Services will be limited at the Pearl City office for the remainder of the week. The new Kapolei location will be open for business Tuesday following the Veterans Day holiday. Those wishing to speak to a Social Security representative may can call (800) 772-1213 or visit the Social Security office downtown at the Prince Kuhio Federal Building. With the move to Kapolei, Social Security will continue to maintain two Oahu offices. Neighbor island offices are in Hilo, Wailuku and Lihue.


State Street to become largest

BOSTON >> State Street Corp. will pay up to $1.5 billion for most of Deutsche Bank's securities services division in a deal that would catapult the Boston firm past Bank of New York and J.P. Morgan Chase as the world's largest custodian of financial assets.

Approximately 3,200 Deutsche Bank employees would be transferred to State Street. But State Street said the integration would result in about 1,000 job cuts next year.

SEC expands WorldCom charges

WASHINGTON >> The government expanded its civil fraud charges against WorldCom Inc. as the company raised its estimate of inflated earnings to more than $9 billion in one of the most stunning accounting scandals of the past year.

The Securities and Exchange Commission announced yesterday it had broadened the scope of its charges to allege that WorldCom misled investors starting at least as early as 1999.

Safeway may sell Chicago stores

CHICAGO >> Safeway Inc., the giant supermarket chain, is threatening to sell its 113 stores here if it fails to reach a satisfactory labor agreement with unionized employees.

In a filing Monday with the Securities and Exchange Commission, Pleasanton, Calif.-based Safeway said it would be forced to take drastic action if it was unable to restructure labor contracts to bring its stores which operate under the Dominick's name in line with contracts at Jewel Food Stores, its prime competitor in Chicago.

"The company would dispose of the assets of the Dominick's subsidiary," said Safeway in its 8-K filing. "Dominick's will not attempt to operate any of its stores should the employees go on strike."

American Airlines raises cost-cut goal

FORT WORTH, Texas >> AMR Corp., parent of American Airlines, raised its goal for annual cost reductions by a third to as much as $4 billion because of competition from growing low-fare rivals such as Southwest Airlines Co.

Bloomberg News reported the world's largest airline company must permanently cut costs because travelers won't pay high prices even after the U.S. economy rebounds, as they've done in the past, Chief Executive Officer Don Carty told workers in a message. In September, he said American might need to trim as much as $3 billion a year.

The company has identified more than $2 billion in permanent cost reductions.


BNP net falls 23% on investment provisions

Paris >> BNP Paribas SA said third- quarter earnings dropped 23 percent as tumbling stock markets forced France's biggest bank to set aside 244 million euros ($242 million) for investment losses.

Net income fell to 573 million euros, or 64 cents a share, from 743 million euros, or 84 cents, in the year-earlier period. Chairman Michel Pebereau told reporters BNP is reducing costs in investment banking and scaling back loans to telecommunications companies and airlines, as part of an effort to boost profit.

BNP Paribas is the parent company of First Hawaiian Bank.




>> First Hawaiian Bank has announced two officer appointments at Bishop Street Capital Management, their money-management subsidiary: Dale T. Kobayashi to vice president and senior investment officer and Damian L. Gilbert to vice president and senior equity analyst. Kobayashi has more than 10 years' investment experience. Gilbert was most recently at The Scotsman Publications and formerly with Salomon Smith Barney and Advanta Partners.

>> General Manager John R. Rader Jr. has resigned from the Outrigger Canoe Club to accept an executive position with The Beach & Tennis Club in Pebble Beach, Calif. He had joined Outrigger in 1995 after serving as vice president of food & beverage at the Balboa Bay Club in Southern California. The club has hired Hawaii-based Inkinen & Associates to search for a new general manager.


>> Easter Seals Hawaii has presented former University of Hawaii Athletic Director Hugh Yoshida and Nissan Hawaii President and Chief Executive Officer Eric Miyasaki with its Laulima Award for contributions to Easter Seals and its history. This honor has been given to just 25 people in the 56 years Easter Seals has been serving Hawaii. Others recognized at the Easter Seals' Annual Awards Dinner last month included Paul Ables, Hawaii Insurers Council, who received the Chairman's Award; Anastasia Keller-Collins and Wendy Correa of Easter Seals Hawaii, who received the President's Award; Don Robbs, Cox Communications, who received the Fred Ida Stewardship Award; Ron Mizutani and Bob Pritchard, KHON TV2, who received the Equality, Dignity, Independence Advocacy Award; Ted McAneeley, Mauna Kea Resorts, Tom Moffat, Tom Moffat Productions and Leighton Tseu, Matson Navigation Co., all won the Community Service Award; Nissan's Miyasaki also won the VIP Ilima Award of Excellence; and author Lois Yamanaka won Rookie of the Year.

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