Rate on 30-year mortgage rises to 3.90%

WASHINGTON » The average rate on the 30-year fixed mortgage stayed near its lowest level on rec ord, keeping home-buying and refinancing affordable.

Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan rose to 3.90 percent from 3.88 percent. The rate touched 3.87 percent in February, which was the lowest since long-term mortgages began in the 1950s.

The 30-year loan is the most common financing option for homebuyers.

The 15-year mortgage, which is popular with those refinancing, rose to 3.13 percent from 3.11 percent, an all-time low.

Cheaper mortgages have done little to boost home sales. Americans bought 2.6 percent fewer homes in March, according to a separate report released by the National Association of Realtors.

Lanai solar project is now at full capacity

A solar energy project that supplies Lanai with 10 percent of its electricity needs recently began operating at full capacity after the installation of a battery system that allows more renewable power to be integrated into the small island electrical grid.

The La Ola photovoltaic solar project, owned by Castle & Cooke, has a maximum output of 1.5 megawatts of direct current, or 1.2 megawatts after converting the power to alternating current for household use.

Since launch of the La Ola project in December 2008, its output had been restricted because officials were concerned that the power fluctuations associated with solar energy might damage the electrical grid. To address the issue, Castle & Cooke installed a battery backup system developed by Texas-based Xtreme Power to smooth out the volatility of the solar energy.

When operating at full power, the La Ola project provides 30 percent of the island’s peak daytime electricity demand.

That is the largest percentage of solar energy penetration of any independent island grid in the world, according to Castle & Cooke.

Organ program gets $100,000 gift

Local health insurer UHA has donated $100,000 to the Queen’s Medical Center for Hawaii’s only organ transplant program.

The program was established after the closure in December of the Hawaii Medical Centers and the only organ transplant center in the Pacific, which was on the Liliha campus.

Queen’s estimates the program will serve 75 to 100 residents each year at a cost of more than $40 million over five years. The hospital expects a cumulative operating loss of between $7 million and $8 million over the next five years.

Queen’s received approval in January to perform liver transplants from the United Network for Organ Sharing, and is awaiting approval for kidney, pancreas and heart transplants.

In February, Gov. Neil Abercrombie signed a bill to appropriate $1.5 million for the new transplant program, subject to matching private funds. The facility has hired 16 employees for the program, housed in Physician’s Office Building III.

Less full planes temper Southwest’s gains

DALLAS » Southwest Airlines Co. is worried that the days of easy fare increases are over.

The airline had a surprisingly good first quarter, helped by a 5 percent increase in the average ticket — part of a three-year trend of higher prices at Southwest, which carries more U.S. passengers than any other airline.

But Southwest’s planes were a bit less crowded than a year ago, and CEO Gary Kelly acknowledged Thursday he’s concerned that some passengers are resisting higher fares.

Southwest reported net income of $98 million, helped by gains from hedging contracts designed to blunt the pain of higher jet fuel prices.

American Air’s parent suffers $1.66B loss

FORT WORTH, Texas » The parent company of American Airlines says it lost $1.66 billion in the first quarter, mostly on costs related to its bankruptcy restructuring.

AMR Corp. said Thursday that excluding bankruptcy costs and other special items, it would have lost $248 million, compared with a loss of $405 million a year ago.

American, the nation’s No. 3 airline behind United and Delta, boosted revenue by 9.1 percent, to $6.04 billion. Revenue for each mile that passengers fly, a closely watched number in the airline business, grew 10.3 percent, much faster than at Southwest Airlines.

New taco gives Taco Bell a shot in the arm

LOUISVILLE, Ky. » Taco Bell’s new take on the taco, featuring orange Doritos dust, has helped put the sizzle back in its U.S. sales after a nearly yearlong slump stemming from a short-lived lawsuit that caused the chain some queasiness.

Sales at Taco Bell stores open at least a year — an indicator of a restaurant chain’s health — rose 6 percent for the first quarter.

Its parent company, Yum Brands Inc., on Thursday predicted even more robust sales gains for the Mexican-style chain in the current quarter.

Yum Chief Financial Officer Rick Carucci predicted sales growth in the high single digits or low double digits.

ON THE MOVE

The Modern Honolulu has named Vittal Cala mur as general manager. His experience includes participating in the growth of the W Hotel brand to 18 hotels from two.

Coldwell Banker Pacific Properties has announced that Chansonette F. Koa has rejoined the firm’s Leeward office. She was previously a Realtor associate at Properties Unlimited.

Xerox Hawaii has appointed Melinda Moore to marketing representative at its Hawaii island office. Moore replaced Mike Frailey, a Xerox Hawaii island marketing representative who had serviced businesses in the Kona area since 2006.

Hawaiian Airlines has announced the nomination of Tomo yuki Moriizumi to the board of directors of Hawaiian Holdings and its subsidiary Hawaiian Airlines. His election to the board will take place at Hawaiian Holdings’ annual meeting of stockholders in Honolulu on May 24.