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Sunday, July 14, 2002

By Steve Massey, Post-Gazette Staff Writer

US Airways' attempts to restructure got a big boost, with the government conditionally approving $900 million in federal loan guarantees and pilots agreeing to $465 million in wage-and-benefit cuts, roughly 85 percent of what management sought. The move effectively made 85 percent the magic number for other union concessions.

Everyone best get on board quick because this airline is flying on fumes.

A deal that would turn St. Francis Medical Center's Lawrenceville flagship into the new home for Children's Hospital moved closer toward reality, but a final agreement still wasn't at hand by week's end. The deal would entail rivals UPMC Health System and Highmark Inc. to work together.

Is there a saint in Children's future?

The White House expressed frustration that the nation's unionized steel companies have made little progress toward consolidating operations and reducing capacity by merging. The Bush administration had expected the industry to move quickly after it imposed tariffs on foreign producers.

Why should the Bush administration be surprised? The steel industry continually has pleaded poverty only to feast on government relief rations without changing behavior.

RedZone Robotics, considered a rising star in the region's efforts to build a lasting robotics industry, filed for bankruptcy protection. The company, which designs and makes robots that handle hazardous wastes, still hopes to get a piece of a $34 billion Defense Department project to make robotic vehicles and weapons that would act as soldiers in military battles.

Ro, Ro, Roboburgh,
gently down the stream,
merrily, merrily, merrily, merrily
talk of boom still seems a dream

Corporate accounting scandals, disappointing profit prospects and just plain investor surliness over any negative news kept the markets in a funk, with the major indices trading at their lowest levels since right after the September attacks.

Oh for the good old days when the markets rose on bad news.