More folks will hit the road for Memorial Day
Memorial Day kicks off the summer travel season, and since average pump prices never reached $4 or $5 a gallon, as feared, economists says travelers are likely to dine out or shop more once they pull off the road.
About 30.7 million people will drive more than 50 miles for Memorial Day trips, according to auto club AAA.
That’s 400,000 more than last year, a jump AAA attributes to improvement in the economy and consumer attitudes. The number of holiday travelers grows to 34.8 million when you include planes, trains and other means of transportation.
United Airlines sued over perk reduction
CHICAGO » A Chicago frequent flier is suing United Airlines for taking away some of his lifetime perks as a so-called Million Miler, someone who has flown 1 million miles with the airline.
George Lagen of Chicago claims United breached a contract with him when the airline combined its frequent-flier program with that of Continental Airlines after the airlines merged, according to a suit filed this week in U.S. District Court.
Lagen claims he spent hundreds of thousands of dollars in becoming a Million Miler, which reaped benefits such as seating upgrades, early boarding privileges and bonus miles credited to his frequent-flier account. Million Milers had lifetime "premier executive" flying status, the second-highest level.
Under the new MileagePlus program, Million Milers belong to the third tier, called Premier Gold. "The result is a severe cut in benefits including fewer bonus miles for flights, a reduced chance of upgrades, and lower priorities in boarding and seating assignments," the suit alleges.
For example, Million Milers now receive a 50 percent bonus on the miles they fly with United, instead of 100 percent, the suit says.
The suit notes a recent comment by John Rainey, United’s new chief financial officer, during an investor conference this month. Rainey said some members of the frequent-flier program were "overentitled," a comment that drew customer ire on frequent-flier message boards.
United Airlines said in a statement, "We greatly value our Million Milers and are continuing to deliver valuable and highly competitive benefits with our lifetime program. One Million Milers receive benefits at the 50,000-mile premier status level — the same as before. We believe this suit is without merit."
Chesapeake Energy costs Icahn $785M
NEW YORK » Activist investor Carl Icahn has taken a sizable stake in Chesapeake Energy Corp. and is calling for at least four of company’s directors to be replaced.
Icahn spent about $785 million to buy 50.1 million shares, or 7.6 percent, of the second-largest U.S. natural gas producer.
The billionaire investor’s stock buy was disclosed in a regulatory filing Friday. It comes as Chesapeake has been hit hard by falling natural gas prices. It is also being criticized for allowing CEO Aubrey McClendon to borrow money from companies that do business with Chesapeake, and allowing him the perk of buying personal stakes in company wells.
Sycamore not ready to pull trigger
NEW YORK » The women’s clothier Talbots Inc. said Friday that a deadline expired without a deal in its exclusive talks about being acquired by a private equity firm and that it will actively pursue other options. Its shares plunged by more than a third in morning trading.
The retailer said that Sycamore Partners told the Massachusetts-based company that "it is not prepared to execute a transaction at this time." Sycamore had previously indicated it would pay $3.05 per share for Talbots. The end of the talks sent Talbots’ stock down $1.05, or 41 percent, to close at $1.51 Friday.
Consumer confidence highest in 4-1⁄2 years
WASHINGTON » A better hiring outlook and lower gas prices pushed U.S. consumer confidence to its highest level in 4-1⁄2 years.
The Thomson Reuters/University of Michigan index of consumer sentiment jumped to 79.3 in May, up from 76.4 in the previous month. That’s the best reading since October 2007 — two months before the recession began.
A high proportion of consumers say they are hearing about job gains rather than losses. The number of those who say they heard of job losses dropped to its lowest point since mid-2007.
China challenges U.S. trade penalties
GENEVA » China filed World Trade Organization cases Friday challenging U.S. anti-subsidy tariffs on 22 Chinese goods including steel, widening a conflict between the two giant trading partners.
The cases come as a weakening global economy fuels trade frictions as governments try to boost exports and create jobs.
China began its challenge by requesting consultations with the United States through the WTO to resolve the dispute. If that fails, China can request a ruling by a WTO panel, which can order the United States to scrap measures found to violate free-trade commitments or to pay compensation.
On the Move
The Outdoor Circle board of directors has selected Martha Townsend as executive director for TOC. She was previously an acting executive director at KAHEA: The Hawaiian Environmental Alliance, which is dedicated to protect Hawaii’s natural and cultural resources.
Pacific Historic Parks has announced Brad L. Wallis as its president and chief executive officer. He has more than 30 years of experience with Cooperating Associations.
Central Pacific Bank has appointed Kenneth Newman to senior vice president of information security. He joined the bank in 2009 and served as vice president and information security manager.
The National Association of Home Builders has awarded Adam Durante his Certified Green Professional designation. Durante is a project engineer for Armstrong Builders.
American Savings Bank has promoted Heather Schwarm to executive vice president and chief financial officer. Schwarm has 19 years of credit and risk management experience.
