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November 12, 2004
Retail Sales up Slightly as Expected
U.S. retail sales rose by 0.2 percent in October, the Commerce
Department said today, matching expectations after a sharp drop in auto
sales was offset by solid growth in other areas, Reuters reported. Wall
Street had predicted the modest advance in payback from
September’s car-fueled performance. This was revised to show an
1.6 percent gain compared with the 1.5 percent gain that was initially
reported. Excluding auto sales, which can swing sharply from month to
month, retail sales were up 0.9 percent compared with forecasts for a
0.5 percent gain and after a 0.8 percent gain in September, revised up
from 0.6 percent.
Delta Pilots Vote to Accept 32.5 Percent Pay Cut
Pilots at Delta Air Lines approved a new five-year contract yesterday
with $1 billion in annual concessions sought by the airline, which had
threatened to file for bankruptcy if the pilots did not acquiesce, the
New York Times reported. The deal, which cuts pay by 32.5 percent, would
reduce the salary of the highest-paid Delta pilot by more than $90,000,
to about $185,000 a year. It ends an era of luxurious pilot pay in the
airline industry, but does not end Delta’s problems.
Spokane Catholic Diocese to File for Bankruptcy
The Roman Catholic Diocese of Spokane said on Thursday it would
declare bankruptcy by the end of November to shield itself from dozens
of lawsuits by people charging priests abused them in the past 40 years,
Reuters reported. The diocese of more than 70,000 Catholics in
Washington state’s second most populous city would be the third to
declare bankruptcy in the United States because of looming sex abuse
suits. Portland, Oregon, filed in July and Tucson, Arizona, in
September. By asking for bankruptcy protection, the Spokane Diocese
would be able to stop 28 lawsuits from going to court on Nov. 29, Bishop
William Skylstad said, the newswire reported.
US Airways
US Air Ticket Agents May Walk
According to a Communication Workers of America (CWA) press release,
the union that represents US Air’s ticket agents, 86 percent of
union members voted to authorize a strike if a “fair,
equitable” contract cannot be reached, CNNMoney reported. The vote
was conducted by mail and the ballots were counted Wednesday night.
“The goal of the CWA negotiating team is to reach a fair
agreement that agents can ratify, an agreement that maintains our living
standard and that acknowledges the value that experienced, skilled and
professional customer service brings to US Airways,” the CWA said
in its press release.
US Airways to Keep Flying Most of Its Planes
US Airways Group Inc., which filed for bankruptcy protection in
September, on Thursday said it reached agreements with its lenders and
lessors that will let it keep flying most of its planes, Reuters
reported. The carrier operates 282 mainline jets, while its US Airways
Express unit operates 67 regional and 64 turboprop aircraft. US Airways
said it had 60 days after its Sept. 12 bankruptcy filing either to agree
to meet the terms of
Jones Apparel to Buy Barneys for $400 Million
Barneys New York on Thursday agreed to be acquired by clothing
manufacturer Jones Apparel Group Inc. for $400 million, Reuters
reported. “It’s not the most obvious combination. And not
the one I would have predicted. It’s a marriage of two very
different cultures,” said Kurt Barnard, president of industry
forecaster Retail Consulting Group. “Barneys is not a manufacturer
and Jones is not a major retailer. They will have to live together and
have a lot of adjusting to do,” Barnard said, the newswire
reported.