Home >  Business

Saturday, January 26, 2002

Pittsburgh Post-Gazette

US Airways left out as alliance falters

American Airlines and British Airways yesterday rejected a U.S. Department of Transportation proposal approving an alliance between the two carriers, provided they divest themselves of some of their slots at London's Heathrow Airport.

Had the proposal been adopted, US Airways would have obtained slots for two nonstop daily flights from the United States to Heathrow. The airline had requested four round-trip flights and indicated it planned to press the Transportation Department to change its proposal.

US Airways currently provides nonstop daily service between its three hubs -- Pittsburgh, Philadelphia and Charlotte, N.C. -- and London's Gatwick Airport but has long sought landing rights at the more popular Heathrow.

US Airways said the Transportation Department's decision would have prevented it from providing service between its three hubs and Heathrow.

Pilots reject Wolf's plan

US Airways Chairman and Chief Executive Officer Stephen Wolf met this week in Pittsburgh with the pilots union, during which meeting he asked the Air Line Pilots Association to agree to the deployment of 40 additional regional jets above the contractual limit of 70, according to a notice on the union's Web site. Under the proposal, at least half of the planes would be flown by US Airways pilots who have been furloughed. However, the pilots union said it would consider the proposal only in the context of an overall agreement on regional jets. The pilots union has proposed raising the contractual limit to 289 regional jets, while the company has asked permission to fly over 400.

IT Group seals asset deal

IT Group signed a definitive agreement to sell most of its assets to the Shaw Group of Baton Rouge, La., in a deal valued at $160 million to $200 million. The price includes $105 million in cash, assumption of certain liabilities and forgiveness of any loans provided by Shaw until the transaction occurs. The sale was announced last week when Monroeville-based IT Group filed for Chapter 11 bankruptcy protection.

Mylan gains drug approval

At least five generic-drug makers, including Mylan Laboratories Inc., have won Food and Drug Administration approval to market metformin, a generic version of Bristol-Myers Squibb Co.'s diabetes drug Glucophage. Mylan, Ivax Corp., Watson Pharmaceuticals Inc., Alpharma Inc. and Teva Pharmaceutical Industries Ltd. received the approvals after Bristol-Myers lost a fight in Congress late last month to hold off generic competition for Glucophage IR, the top-selling diabetes drug. Bristol-Myers has said sales would drop by more than half this year as competitors introduce generic versions of Glucophage IR.

Medicare HMO sets prices

UPMC Health Plan will begin offering the region's seniors a Medicare HMO in February at a monthly premium of $58 with prescription benefits and $9 without prescription coverage. The maximum prescription benefit is $350 per quarter. The new health plan, being marketed as UPMC for Life, was inaugurated early last year in outlying counties and ended 2001 with 1,258 members. With the addition of members in the six-county region this year, UPMC said it expects the HMO's membership to grow to 9,425 by the end of 2002.

Mercedes, GM cars recalled

Mercedes-Benz USA is recalling 65,000 cars after owners complained of exploding batteries. General Motors is recalling 546,000 sport utility vehicles because the brake and hazard lights can fail.

Accounting of aid, comfort

The Western Pennsylvania division of the Salvation Army said yesterday it had distributed nearly $65,000 in aid to furloughed US Airways employees who sought help with paying household bills. The relief agency also said it served nearly 20,000 meals at the site of the Somerset crash of Flight 93 on Sept. 11 and its volunteers donated 13,000 hours of their time there. The Salvation Army gave the accounting of its efforts toward helping those adversely affected by terrorist attacks in a statement announcing a $10,000 donation from Centimark Corp.

Nucor's steel deal OK'd

Nucor said a bankruptcy court judge in Delaware approved its purchase of most of the assets of Trico Steel of Decatur, Ala. The sale is expected to be completed in the third quarter, following resolution of regulatory and tax matters. Trico can produce 1.9 million tons of sheet steel annually.

Earnings

Parkvale Financial Corp. reported fiscal second-quarter net income of $3.4 million, or 59 cents per diluted share, vs. $3.5 million, or 61 cents per diluted share, a year ago.

Laurel Capital Group Inc. reported fiscal second-quarter net income of $759,000, or 37 cents per diluted share, vs. $1.06 million, or 52 cents per diluted share, a year ago.

Also in business ...

Black Box Corp. said it was acquiring Telefuture Communications Ltd., a New Rochelle, N.Y., company with annual revenues of $5 million, for an undisclosed amount ... Tollgrade Communications Inc. said it would continue its share repurchase plan, which allows the company to repurchase 1 million shares before Dec. 31 ... LTV Corp. said it agreed to sell a Warren, Ohio-based coke plant to Warren Coke Corp., an affiliate of the Tonawanda Coke Corp., for undisclosed terms. The plant has about 200 employees.