Business today

Compiled from Times wires

© St. Petersburg Times,
published June 21, 2001

DELTA CONTRACT APPROVED: Delta Air Lines Inc. pilots voted to approve a new four-year contract, heading off the threat of a strike. The Air Line Pilots Association, which represents about 10,000 Delta pilots, said the contract passed 5,862-2,476. The agreement will boost pay by between 24 percent and 39 percent during its term, depending on seniority and the type of aircraft a pilot flies. Separately, a spokesman for the union representing Comair pilots said the vote on a new contract was too close to call. "I'm getting extremely mixed signals and right now I am not confident in saying 'yea' or 'nay,' " Max Roberts said. Results are expected today.

AIRLINE REVENUE PLUMMETS: Major U.S. airlines last month saw the biggest decline in domestic revenue in 25 years as businesses reduced travel spending, an industry group and an analyst said. Unit revenue, or revenue for each airplane seat flown one mile, fell 11.8 percent from the year-earlier month while total sales fell 10 percent, the Air Transport Association said. Most of the largest U.S. airlines are expected to report second-quarter losses as companies respond to the slowing economy by reducing high-fare business travel. The three largest -- American Airlines, United Airlines and Delta Air Lines -- recently have said their losses in the quarter will be greater than originally forecast.

DISNEY CUTS 100, REPORT SAYS: Dozens of workers at the sprawling Walt Disney World resort were pulled aside after lunch Tuesday and told their jobs had been eliminated, the Orlando Sentinel reported. The final step in Disney's plan to trim 1,200 to 1,400 Orlando jobs claimed about 100 workers, the Sentinel reported. Disney spokesman Bill Warren would not confirm how many of the Orlando cuts, which came largely from the ranks of managers, were achieved through layoffs. Disney is eliminating 3 percent, or nearly 4,000 jobs, of its worldwide work force to save $300-million to $400-million a year.

CATALINA LOWERS FORECAST: Catalina Marketing Corp. has lowered its quarterly earnings forecast for a second time, citing advertisers' lowered spending on promotions. The St. Petersburg electronic supermarket coupon distributor expects earnings of 13 cents to 15 cents a share for the quarter ending June 30. Analysts had been expecting 20 cents a share.

WOMAN SENTENCED IN VIATICAL SCAM: A woman who admitted laundering money in a viatical investment scam was sentenced to a year in federal prison. Cheryl Poindexter, 53, of Studio City, Calif., also was ordered to pay $759,173 restitution to investors in Financial Federated Title & Trust and its marketing arm, American Benefits Services, although bankruptcy trustee John Koyzak said it is not likely the money will be paid. Poindexter became involved in the case through her boyfriend, Gary Pierce, who controlled CSI Ag. Ltd., which was affiliated with the South Florida companies.

HEALTHPLAN SALE COMPLETED: PlanVista Corp. has completed the previously announced sale of its HealthPlan Services unit to Sun Capital Partners Inc., an investment company in Boca Raton. Also acquired in the non-cash transfer were three other PlanVista subsidiaries: American Benefit Plan Administrators Inc., Southern Nevada Administrators Inc. and Montgomery Management Corp. HealthPlan Services, a third-party benefits administrator, will remain headquartered in Tampa with 700 local employees. PlanVista is a preferred provider organization that provides network access and claims and data management services to health care payers and provider networks. It has about 200 employees, 25 of whom are in PlanVista's Tampa headquarters; the rest are in offices in Middletown, N.Y.

ALLSTATE TO SELL EUROPEAN UNITS: Allstate Corp. is selling its direct auto insurance businesses in Germany and Italy to London-based Direct Line. Details of the transaction were not announced. Allstate said it is selling the Berlin- and Milan-based operations in order to focus on its North American businesses.

GE OFFERS ONLINE SALES: General Electric Co. is allowing its dealers to sell GE refrigerators and washers over the Internet to help the company increase sales. Shoppers at GEAppliances.com can research appliance features and order appliances directly from retailers' inventory, a spokeswoman said. Previously, shoppers could only research product options, request service and order appliance accessories at the Web site.

REPORT SHAKES UP QWEST: Qwest Communications International Inc. scrambled to dispute an analyst's report that downgraded its stock and questioned some accounting decisions. Morgan Stanley Dean Witter noted writedowns Qwest made relating to its merger with US West last year and said it expected Qwest to take a large writedown for its European joint venture, KPNQwest. The telecommunications company said none of the issues raised in the report affected Qwest earnings or the need for cash, and executives blasted the report as inaccurate and misleading. However, the changes will affect earnings per share. Qwest shares closed at $30.02, down $1.25.

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