United plans to compete with discount carriers

United Airlines on Wednesday said it would launch a low-cost carrier from its Denver hub in February, flying to destinations in the Southwest and Southeast before expanding service nationwide.

The bankrupt airline’s goal is to better compete with discount carriers such as Frontier, JetBlue and Southwest, which have grown quickly amid the economic downturn.

“Customers want low fares, low fares, low fares, and they’re not willing to pay extra for a free meal,” said Sean Donohue, vice president for the new operation.

Investigation

Questionable Enron sale nets criminal charges

Three former Merrill Lynch executives were charged with fraud Wednesday for allegedly helping Enron Corp. inflate earnings with a loan the energy trader disguised as a sale.

Daniel Bayly, Robert Furst and James Brown were named in a three-count federal indictment unsealed Wednesday in Houston. All three were charged with conspiracy to commit wire fraud and falsifying books and records.

The charges stem from a scheme in which Enron, with Merrill’s knowledge, allegedly booked a short-term investment from the brokerage firm as profit from the sale of Nigerian barges. The income was then used to make Enron appear to have met earnings targets.

Tobacco

R.J. Reynolds to cut jobs

Faced with stiff competition from discount brands, R.J. Reynolds Tobacco said Wednesday it would cut 2,600 jobs, about 40 percent of its work force, in an effort to trim costs.

The company plans to trim its expenses by $1 billion by the end of 2005 and will focus its spending on premium brands, such as Camel and Salem.

Lawsuit

Hallmark loses verdict

A jury this week awarded $8.9 million in damages to a firm that sued Hallmark Cards Inc. for infringing on patents for a ribbon-curling machine.

The case stemmed from a dispute involving a British company, Group One, and its owner, Fredric Goldstein.

Goldstein discussed his machine in a telephone conference with a Hallmark engineer Feb. 14, 1992, and a meeting was scheduled for three days later, court documents said.

However, Hallmark canceled the meeting, court documents said, and in July that year sent Goldstein a letter saying that it had developed its own machine “for curling and shredding ribbon.”

A Hallmark spokeswoman said the company would appeal the decision.

Banking

Commercial Federal declares dividend

Commercial Federal Bank announced Wednesday that it had approved a quarterly cash dividend of 10 cents per share The dividend will be paid on Oct. 9, to shareholders of record as of Sept. 25. Commercial Federal Bank operates a branch in Lawrence.