Archive for Friday, October 18, 2002

Briefcase

October 18, 2002

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Delta to cut jobs

Delta Air Lines said Thursday it was eliminating 7,000 to 8,000 more jobs to try to stem dramatic financial losses blamed on Sept. 11 and the sluggish economy.

Earlier this week, the airline reported a $326 million loss in the last quarter and said it did not see any improvement anytime soon.

The cutbacks bring Delta's work force down to 61,500. The airline has eliminated 21,000 jobs, or about 25 percent of its work force, since the terrorist attacks.

Delta said the cutbacks would include management and would be accomplished through early retirement, other forms of voluntary leave and, if necessary, layoffs.

Southwest Airlines

Airline seeks to increase flights from Kansas City

Southwest Airlines plans an expansion that would increase its flights from Kansas City International Airport, city aviation director Russell Widmar says.

Widmar told the Aviation Committee of the Kansas City, Mo., City Council on Wednesday that the airline wants to expand its space as part of a terminal renovation project now under way. It would provide more passenger holding areas and baggage claim space, and allow Southwest to increase daily flights from the airport to 120, from the present 75, Widmar said.

When the terminal renovations are completed in 2004, Southwest will have 12 gates in Terminal B. It had already planned to expand most of its space, but under the new proposal, all of the Southwest area would be expanded.

Corporate Fraud

Scandals cost Americans $200 billion, report says

Recent corporate scandals have cost Americans more than $200 billion in lost investment savings, jobs, pension losses and tax revenue, according to a report released Thursday.

The report issued by the "No More Enrons" coalition, partially funded by consumer groups and labor unions, said losses from 401(k) investment accounts alone totaled $175 billion and public pension funds nationwide lost at least $6.4 billion as the stock market plummeted amid a crisis of investor confidence.

It estimated that more than a million workers lost their jobs at the affected companies, while company executives cashed out billions of dollars of their stock.

Wall Street

Earnings of interest

Several companies with operations in the area have announced earnings recently. Honeywell International announced earnings of 50 cents per share versus a loss of 38 cents per share a year earlier. But the company, which operates an avionics plant in Lawrence, said it did expect to cut another 3,000 to 8,000 jobs. Company officials did not say where the cuts would be made.

Kansas City, Mo.-based UMB Financial Corp. announced earnings of 52 cents per share, down from 80 cents a year earlier. UMB operates a branch in Lawrence. Schlumberger Ltd. reported earnings of 30 cents per share versus 34 cents per share a year earlier. The oil field services company has a manufacturing facility in Lawrence.

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