AIR TRAVEL
More airlines raise fares to grab tax savings
DALLAS — The great tax holiday of 2011 for air travelers is just about over.
By Monday, most U.S. airlines had raised fares to reap the benefit of lower federal taxes on airline tickets. A few airlines that were passing the savings on to consumers changed their minds.
Several federal taxes on airline tickets expired over the weekend after Congress failed to pass legislation to keep the Federal Aviation Administration running at full speed.
Raising the fares allows the airlines to charge the consumer the same amount as before, while pocketing money previously collected for the government.
It could turn into a windfall for airlines if the stalemate in Congress drags on. The government estimates that the expiring taxes total $200 million a week. And with fuel prices much higher than last year, airlines can use the cash.
Airlines collect various federal fees, including a 7.5 percent tax on all tickets that expired at midnight Friday night. Once the taxes expired, airlines began raising fares by an equal amount. On some tickets, the expired taxes can top 10 percent of the price.
LAYOFFS
BlackBerry maker to cut 2,000 jobs
NEW YORK — Faced with tough competition and falling profits, BlackBerry maker Research In Motion Ltd. is cutting 2,000 jobs as part of a cost savings plan announced last month and is shuffling some senior executives.
The job cuts amount to about 10 percent of the company’s workforce. The company said Monday it will notify affected employees this week. It expects to give more information on the layoffs when it reports fiscal second-quarter results on Sept. 15.
Although BlackBerrys have dominated the corporate smartphone market, their popularity in the consumer market has been short-lived. While RIM’s sales are still growing thanks to BlackBerry adoption overseas, U.S. consumers have moved on to phones with big touchscreens. Apple Inc.’s iPhone and various models that run Google Inc.’s Android operating system are dominating that market.
Last week, Apple reported selling 20.3 million iPhones in the April to June period, a record number. RIM sold 13.2 million BlackBerrys in the March to May period.
AUTO
UAW, Chrysler kick off contract talks
AUBURN HILLS — Detroit’s carmakers and the United Auto Workers union have officially begun bargaining for a new four-year contract.
UAW and Chrysler Group leaders kicked off the talks Monday morning with a series of friendly handshakes. The current contract expires Sept. 14.
Company and union officials wore matching maroon jackets to signify their unity. Both sides say they want fair contracts that keep the automakers competitive.
But the talks could get heated. Workers agreed to give up pay raises and benefits to keep the companies in business four years ago. Now that Chrysler, General Motors and Ford are profitable again, workers want compensation for their sacrifice.
UAW President Bob King says further financial sacrifices from union members aren’t justified, but the union will consider other ways to cut costs.
VERMONT
Nuclear plant refuels despite uncertainty
MONTPELIER — The owner of Vermont’s only nuclear power plant plans to move forward with a $60 million refueling this fall despite uncertainty about whether the plant will be operating beyond March, when its current operating license expires.
New Orleans-based Entergy Corp. said company attorneys felt the firm would eventually win in its lawsuit against the state over the future of the Vermont Yankee plant.
Earlier this year, the Nuclear Regulatory Commission issued Vermont Yankee a 20-year license extension that would allow the plant to remain open until 2032. But the state, which claims it has jurisdiction over the future of the aging plant, wants it to close and has not acted on a state certification that is needed for Vermont Yankee to remain open. The plant has had a series of technical problems in recent years.
Last week, U.S. District Judge J. Garvan Murtha refused to issue an order that would keep the plant open while the underlying legal issues are decided. The case is scheduled to go to trial in September.
From wire dispatches and staff reports
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