Hawaiian, Virgin Australia start code-share

Hawaiian Airlines and the Virgin Australia group of airlines have launched a new agreement that allows Virgin Australia’s international airline, V Australia, to code-share on Hawaiian Airlines flights between Sydney and Honolulu, as well as beyond on connecting neighbor island flights in Hawaii to Kahului, Lihue, Hilo and Kona.

Hawaiian currently operates five weekly flights from Australia, and will increase to year-round daily departures starting Dec. 14. Hawaiian and Virgin Australia have had an interline agreement in place since 2006, allowing Hawaiian’s guests to connect to destinations throughout Australia and New Zealand.

This agreement also allows members of Virgin Australia’s frequent flier program Velocity to earn and redeem frequent flier points on Hawaiian’s flights. The two carriers are working on a reciprocal program allowing HawaiianMiles members to earn and redeem miles on Virgin Australia that is expected to take effect in 2012.

With the implementation of the code-share agreement, travelers are now able to purchase fares to and from Hawaii through V Australia.

Freddie Mac seeks $6B from Treasury

WASHINGTON » Freddie Mac, one of two mortgage-finance companies under U.S. conservatorship, reported a $4.4 billion loss for the third quarter and said it will seek $6 billion from the U.S. Treasury Department.

The company, confronted with a weak housing market and losses on derivatives, will draw on its Treasury cash lifeline to eliminate a net-worth deficit of $6 billion for the three- month period ending Sept. 30, according to a Securities and Exchange Commission filing Thursday.

Thursday’s request brings Freddie Mac’s total Treasury draw to $72.2 billion. The company has returned $14.9 billion of that money to taxpayers in the form of dividend payments to the government. Freddie Mac’s $1.6 billion dividend payment in the third quarter contributed to its net-worth deficit, the company reported.

The McLean, Va.-based company posted a $646 million first-quarter profit in May, then swung to a $1.1 billion loss in the second quarter. A year ago, the company reported a $4.1 billion, third-quarter loss.

In Thursday’s filing, Freddie Mac reported $4.8 billion in derivative losses due to declining interest rates.

Kodak posts wider loss, warns on prospects

ROCHESTER, N.Y. » Eastman Kodak Co. warned Thursday that its survival over the next year hinges on an ability to sell its potentially lucrative digital-imaging patents or raise extra funds by selling debt.

The cautionary statement in a securities filing came as the embattled photography pioneer posted a wider $222 million loss for the third quarter and said its cash reserves fell almost 10 percent.

Revenue tumbled 17 percent for July to September, with a rise in sales of inkjet printers and ink more than offset by a drop in revenue from film and digital cameras. Kodak trimmed its full-year outlook, warning that revenue could be 1.5 percent to 4 percent lower than expected and losses might drop to the low end of its previous forecast.

New AMD chief cutting 1,400 workers

SAN FRANCISCO » Advanced Micro Devices Inc. is cutting some 1,400 workers as a weak computer market and manufacturing delays have hurt the world’s second-biggest maker of microprocessors for PCs.

The layoffs announced Thursday amount to about 12 percent of the company’s 12,000 workers and are the first big move by AMD’s new CEO, Rory Read, who was hired from Lenovo Group in August.

AMD is struggling with an industrywide problem: weak PC sales growth, particularly in the U.S. and Europe, which has been anemic because of the economy and competition from smartphones and tablets. Although PC shipments continue to grow, the pace is slowing sharply. Shipments of PCs rose in the third quarter but at a more sluggish pace than market research firms IDC and Gartner Inc. expected. That has raised concerns about the strength of the market going in to the holiday shopping season.

CVS Caremark profit rises 7 percent

WOONSOCKET, R.I. » CVS Caremark Corp.’s third-quarter net income climbed 7 percent as a long-term contract and an acquisition gave it more pharmacy network claims to process.

The Woonsocket, R.I., drugstore operator on Thursday also raised the low end of its full-year profit forecast, saying the Caremark pharmacy benefits business performed better than the company expected during the quarter. Competitor Walgreen Co. also said its sales are being hurt by a contract dispute with pharmacy benefits manager Express Scripts Inc., and CVS could be in position to pick up some of Walgreen’s sales.

CVS Caremark had net income of $868 million, or 65 cents a share, for the three months that ended Sept. 30. That compares with $809 million, or 59 cents a share, a year earlier. Revenue grew 12 percent to $26.67 billion.

ON THE MOVE

Kathryn Raethel has been appointed president and chief executive officer of Castle Medical Center, assuming her new role on Dec. 5. She is now vice president of patient care services at Castle.

The University of Hawaii Cancer Center has announced the following additions: 

» Dr. Peiwen Fei, associate professor, was previously an associate professor with the Hormel Institute at the University of Minnesota.

» James Turkson, professor, was previously an associate professor at the University of Central Florida’s Burnett School of Biomedical Sciences.

Island Insurance Foundation has donated $5,000 to the Nuuanu YMCA. Funds will help provide financial assistance to youth participating in the Y’s summer day camp, the Club Mid middle school after-school program, STRIVE Leadership Youth Program and swimming lessons.

Kaanapali Land Management Corp. has promoted Howard Hanzawa to senior vice president. Since joining the company in 2006, Hanzawa has overseen KLMC’s operations and projects in West Maui as well as worked with Maui Cultural Lands.

The Small Business Commerce Association has selected Moiliili Community Center as 2010 Best of Business Award in the community center category earlier this year.