LITTLE ROCK — QUOTE OF THE DAY
“We are loading barges every day here at Helena right on the river.” Robert Goodson, an extension agent with the University of Arkansas Division of Agriculture Article,1D Higher fare set to save fliers from fees
DALLAS - American Airlines, in a revision of fare structure, will charge $68 or $88 more per round trip for economy-class passengers who want a ticket that lets them check baggage or change the reservation later without getting hit by another fee.
The airline says it’s responding to customer complaints about fees, especially the charge - typically $150 - for changing a reservation.
“This will eliminate the fear about what-ifs,” said Rick Elieson, American’s managing director of digital marketing.
American will still sell a basic fare without protection against add-on fees “for the less-discriminating passenger who is just looking for the cheapest way to get to where they’ve got to go,” Elieson said.
Travel experts mostly praised the change and predicted that other airlines will mimic it.
“A checked bag costs $50 anyway, so for $18 more you get protection against change fees,” said George Hobica, cofounder of travel website airfarewatchdog.com. “If I had to check a bag anyway, I’d do it.”
American said Wednesday that it’s selling the new tickets on its aa.com website and through travel agents for flights in the contiguous 48 states.
- The Associated PressValue of global corporate deals falls
LONDON - The value of mergers and acquisitions deals around the world in 2012 was nearly half the amount made five years ago, when the financial crisis first bared its teeth, a leading accounting and consulting firm said Wednesday.
Despite big deals such as Rosneft’s takeover of fellow Russian oil company TNK-BP for a projected $54.5 billion, and Glencore International PLC’s $45.8 billion acquisition of miner Xstrata PLC, Ernst & Young is forecasting that the value of global M&A was 47 percent lower in 2012 at $2.25 trillion, against 2007’s $4.3 trillion. The company noted a shift in activity from developed economies to high-growth ones in Asia and Latin America - the value of deals in the U.S. halved while those in China doubled.
There were fewer than 37,000 deals worldwide, around 9,000 less than in 2007, when many companies took part in a feverish bout of deal-making, many of which proved to be too costly for the companies to bear.
The survey, conducted in October, compiles the views of 1,500 senior executives from large companies around the world and across industry sectors.
- The Associated Press
Redbox to offer online video service
LOS ANGELES - DVD kiosk operator Redbox said Wednesday that it is launching a challenge to Netflix’s streaming-video service.
Later this month, Redbox will offer an unlimited streaming-video plan that includes movies from Warner Bros. and pay TV channel Epix, along with four nights of physical DVD rentals, for $8 a month, or $9 a month if customers want Blu-ray discs.
The offering is priced even lower than the $10-per-month DVD and streaming plan that Netflix Inc. abandoned a year ago. The lowest price plan from Netflix that combines DVDs-by-mail and streaming is now $16 a month.
The new service, called Redbox Instant by Verizon, is “targeted squarely at movie lovers,” said Shawn Strickland, the chief executive of the joint venture between Redbox parent Coinstar Inc., which is based in Bellevue, Wash., and New York-based Verizon Communications Inc.
The service won’t include TV shows when it launches on an invitation-only basis before the end of the year. Video game rentals, which cost $2 a night, also are not included in the plan.
While the price and features of the Redbox service are similar to what’s offered by Netflix, its library is smaller and focused mainly on the most popular Hollywood fare, which Strickland says are the movies that “really matter in the marketplace.”- The Associated Press Avon to cut 1,500 jobs, exit 2 nations
NEW YORK - Avon Products plans to cut about 1,500 jobs and exit two Asian markets, as the struggling beautyproducts seller starts on a broad restructuring plan in an effort to turn around results.
The job cuts amount to almost 4 percent of its work force and mark one of the first major moves by Chief Executive Officer Sheri McCoy, who’s held the position since April.
Avon said the job cuts span all regions and functions. The 1,500 cuts include 100 employees in Vietnam and South Korea, which Avon will exit entirely.
Avon said in November that it would embark on a plan to save $400 million in three years, but the jobs cuts and market exits are the first details about the plan. The restructuring follows moves other consumer product makers have made this year to cut costs and exit businesses as they face an uncertain global economy.
The New York-based direct beauty products seller said it plans to focus on high-priority markets as part of the push to save $400 million. The initial steps are expected to be largely completed by the end of next year.
- The Associated Press Honda recalls 870,000 minivans, SUVs
DETROIT - Honda is recalling more than 870,000 minivans and sport utility vehicles worldwide because they can roll away even though drivers have removed the keys from the ignition.
The recall announced Wednesday affects older-model vehicles sold mainly in the United States. They were big sellers with families because of their ample space and reputation for quality. Problems with the ignition switches have troubled Honda for years. It has recalled nearly 2.3 million vehicles for the problem since 2003.
Models affected include 347,000 Honda Odyssey minivans and 277,000 Pilot SUVs from the 2003 and 2004 model years. Also included are 247,000 Acura MDX SUVs from the 2003 through 2006 period. All have automatic transmissions.
More than 807,000 were sold in the U.S.
The mechanism that locks the key in the ignition while the vehicles are in gear can wear out. When that happens, drivers of the vans and SUVs are able to remove keys without shifting into park, Honda said.
U.S. safety regulators began investigating the problem in October after owners filed 43 complaints with the National Highway Traffic Safety Administration. Owners reported 16 crashes due to the problem. Two people were hurt in the crashes, according to the administration’s database.
Dealers will repair the ignition interlock system free of charge, Honda said. Owners will get notices starting in February.
Business, Pages 26 on 12/13/2012