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City bonds rated AA on stable economy

The City and County of Honolulu's $250 million general obligation bonds, series 2003 A, have been assigned an "AA" rating by Fitch Ratings.

Fitch, saying Honolulu's rating outlook is stable, also affirmed the "AA" rating on $1.77 billion in outstanding general obligation bonds.

The agency said Honolulu's credit strength rests in the "sound fundamentals" of its tourism-based economy, good financial operations and reserves, low debt burden, and strong fiscal management."

Fitch also said Honolulu's tourism base has adapted well to a series of events that reduced activity, while elements such as its role as the area's commercial center, state capital, and a sizable military presence have added stability.

Aloha fleet upgrade to save money

Aloha Airlines has signed an agreement with Aviation Partners Boeing to install Blended Winglet Technology on it Boeing 737-700 aircraft. The upgrade is expected to save the airline about $90,000 per aircraft per year at current fuel prices.

Blended winglets, which are upward-swept tip extensions to airplane wings, will improve the aerodynamic performance and handling characteristics of the 737 while boosting range and reducing fuel burn. Additional benefits include reduced engine maintenance requirements and more environmentally friendly advantages, such as reduced emissions and quieter landings and takeoffs.

Aloha has 10 Boeing 737-700s, with another plane scheduled for delivery in October and one more due in May 2004. The first plane to be installed with the technology will receive the upgrade next month and be delivered to Aloha in September. The remainder of the 12-plane fleet, with one possible exception due to a leasing consideration, will receive the technology by the middle of next year.

In addition to its long-range aircraft, Aloha operates 14 Boeing 737-200s for interisland flights.

New loans for small businesses

The U.S. Small Business Administration has developed a new loan program for Hawaii's small-business community.

The program aims to provide financial, technical and management assistance to underserved segments of the small-business community.

The program, called Community Express, provides participating lenders with an 85 percent loan guarantee. Eligible owners may receive loans of $5,000, $10,000 or $15,000 with a seven-year term.

SBA representatives will be available at orientations on Tuesdays and Thursdays at the Small Business Resource Center in Chinatown Gateway Plaza. To attend, call 522-8130 for registration and directions.

Freeware? Not to SCO Group

SAN JOSE, Calif. >> Shares of the SCO Group Inc. surged more than 11 percent yesterday after the company said it has registered a copyright on Unix software that it claims has been illegally transferred to the free and popular Linux operating system.

Lindon, Utah-based SCO said the move strengthens its $3 billion breach-of-contract lawsuit against International Business Machines Corp. and its attempts to extract licensing fees from commercial Linux users.

Even if SCO is not successful, its licensing campaign is casting doubts on Linux, whose popularity is based on its low cost and similarity to industrial-strength Unix software.

Linux is widely seen as a competitor to Microsoft Corp.'s dominance in servers.

Shares of SCO jumped $1.37 to $13.32 yesterday in trading on the Nasdaq Stock Market.

Stewart's lawyers ask for probe of leaks

NEW YORK >> Martha Stewart's lawyers asked a federal judge yesterday to order an investigation into who leaked details of her indictment to the news media before the grand jury returned the formal charges.

U.S. District Judge Miriam Goldman Cedarbaum appeared skeptical of the request but said she would consider it.

News reports before the June 4 indictment, quoting anonymous sources, accurately predicted the home-decorating maven would be charged with obstruction of justice and conspiracy, and not with the harder-to-prove offense of insider trading.

Stewart's lawyers said the leaks may have influenced the grand jury's eventual decision and violated federal rules that prohibit making grand jury proceedings public.

Cendant's earnings beat Street view

NEW YORK >> Cendant Corp., the parent of Hawaii-founded Cheap Tickets, Avis Rent A Car and other travel and real estate businesses, said yesterday a revival in travel helped it beat second-quarter earnings expectations by 2 cents a share.

The New York-based company reported earnings of $382 million, or 37 cents a share, compared with $7 million, or 1 cent a share last year, which included a big charge for discontinued operations.

Second-quarter revenue rose to $4.58 billion, from $3.78 billion last year.

Cendant also said it expects third-quarter earnings of 44 cents to 45 cents a share, and fourth-quarter earnings of 26 cents to 27 cents a share.

In other news ...

>> Southwest Airlines Co. more than doubled its second-quarter net income under tough conditions, thanks in part to federal reimbursements for airport security fees, although the low-fare carrier would have reported a profit without the help.

>> Enron Corp. announced yesterday it has settled a dispute over notes issued by a partnership created in 1998 to refinance part of the purchase price of the top asset in an ill-fated water venture.

>> The movie industry is trying a new tactic in its war against people who download pirated copies of films over the Internet -- it's asking nicely with television ads and in-theater spots featuring makeup artists, set painters and other crafts people saying that piracy robs them of a living.

>> A new Internet music download site for PCs, BuyMusic.com, debuting today, boasts the cheapest per-song rates yet but many of the same restrictions on copying that have stymied wider use of other music services.