Bushonomics: GM, Ford post huge losses as crisis deepens

GM suspends talks to acquire Chrysler, warns it’srunning out of cash

7 November 2008

DETROIT - General Motors and Ford reported Friday that they hemorrhaged cash in the third quarter, offering more evidence that the nation’s automobile industry is on the brink of a meltdown.

GM said it lost $2.5 billion in the third quarter and warned that it could run out of cash in 2009. The nation’s biggest automaker also said it has suspended talks to acquire its smaller U.S. rival Chrysler.

Ford, meanwhile, said it lost $129 million in the third quarter and will eliminate another 2,260 white-collar jobs as it battles the economic downturn, credit crisis and weak environment for car sales. Ford burned through $7.7 billion in cash in the quarter.

“The third quarter was especially challenging for the auto industry," GM Chairman and CEO Rick Wagoner said in a statement. "Consumer spending, which represents close to 70 percent of the U.S. economy, fell dramatically, and the abrupt closure of credit markets created a downward spiral in vehicle sales.”

GM's loss exceeded Wall Street estimates, and the company announced a range of moves to improve its financial position.

But the company surprised Wall Street by announcing it had suspended talks to acquire Chrysler. GM did not refer to Chrysler by name but said it had set aside considerations for a “strategic acquisition.”

“While the acquisition could potentially have provided significant benefits, the company has concluded that it is more important at the present time to focus on its immediate liquidity challenges and, accordingly, considerations of such a transaction as a near-term priority have been set aside,” the company said in a statement.

Privately held Chrysler declined to comment on GM’s statement, but added it remains focused on returning to profitability.

GM announced it would improve liquidity by $5 billion by the end of next year by cutting capital spending, reducing sales promotions and further cutting production in the first quarter.

About 3,600 workers will be laid off indefinitely beginning early next year as the automaker slows down production at 10 of its assembly plants.

The company also suspended its matching contribution for employee 401(k) plans and suspended tuition reimbursement. In addition, salaried employees will not get incentive pay next year for their work in 2008, GM said.

In a conference call with reporters and analysts, Wagoner said the company will “take every action we possibly can” to avoid bankruptcy.

“We’re convinced that the consequences of bankruptcy would be dire,” he said. “We need to find a way to get through this, and that’s really our focus.”

Ford said it lost 6 cents per share for the quarter, compared with a loss of $380 million, or 19 cents per share, a year ago.

“While Ford has been dramatically affected by the difficult business environment, we remain absolutely convinced that we have the right plan and are taking the right actions to weather this difficult period and emerge as a lean, globally integrated company poised for long-term profitable growth,” Alan Mulally, president and chief executive, told industry analysts during a teleconference.

GM reported a net loss of $4.45 per share during the quarter, compared with a record-setting loss of $39 billion, or $68.85 per share, a year ago. Revenue fell to $37.9 billion from $43.7 billion, due largely to the global credit crisis.

GM said it had $16.2 billion in cash, marketable securities and readily available assets at the end of September, down $4.8 billion from the $21 billion it reported on June 30. Wagoner reiterated that the company needs a minimum of $11 billion to $14billion to operate.

Ford posted a pretax loss of $2.7 billion from continuing operations. But it was offset partly by a $2 billion gain as the company shifted retiree health care liabilities to a trust run by the United Auto Workers.

Ford’s global automotive operations had a pretax loss of $2.9 billion for the quarter, compared with a pretax loss of $362 million a year earlier.

Ford Chief Financial Officer Lewis Booth would not say if he expects the cash burn rate will continue at the present levels, but said he was confident the company can make it through 2009.

“With our present assumptions, we are comfortable with our liquidity position,” Booth told reporters. “I think it goes without saying, forecasting the future at the moment is extremely difficult. Trying to find out just exactly what is happening with the consumer is really tough.”

Industry analysts say that if the economy doesn’t improve, Ford could run out of money sometime after 2010.

Ford's job cuts equate to about 10 percent of its North American salaried work force of 22,600. It will reduce the work force primarily through personnel reductions and attrition, Mulally said.

It also said it has no plans to offer more buyout or early retirement packages to blue-collar workers.

The automaker started the year with 89,000 employees in North America but reduced that number to 80,200 as of Sept. 30 through attrition, hirings, buyouts and layoffs.

Hundreds Visit First Unique Auto Exhibition

A revert Muslim woman sits behind the wheel, as she looks over the inside of a new car during an auto exhibition in the city of Ramallah, on 31 October 2008.

Hundreds of Palestinians visited the exhibition, the first of its kind in Palestine.

Don’t think she or her husband is going to have troubles with financing or purchasing, if they wish this nice new sleek car; for the Palestine economy is on the up swing and getting better all the time.

Coming soon: Highway pollution hotline

Environmental Protection, Transport ministries said to launch hotline aimed at enabling motorists to report vehicles they believe exceed legal emission limits. Ministries also looking into revival of scrap metal program

13 October 2008
by Shahar Haselkorn

The Environmental Protection and the Transport ministries have embarked on a joint initiative recently, forming the polluting vehicles hotline, meant to allow drivers to report any cars they think might be exceeding the legal vehicular emission limits.

According to the plan, introduced by Environment Minister Gideon Ezra, people who call the hotline would be able to do so anonymously, but they would have to give a complete description of the polluting car, such as make and model, color and license plate.

The information left on the hotline would be turned over to the Transport Ministry, which would in turn summon the vehicle for emission testing. Should it be found at fault, its license would be suspended pending repair.

"The idea is actually quite simple," Minister Ezra told Ynet. "People would be able to phone in details of cars and the Transport Ministry will deal with the information accordingly."

The final groundwork for the hotline, which includes dotting the i's and crossing the t's, especially on the legalities of the matter, he added, will be done within the next few weeks.

But the feat may be more complicated than it sounds: The general public, say those unsure of the initiative's future, has no real means of identifying a vehicle which exceeds emission levels – a fact which will inevitably result in false reports. Those, in turn, would make dealing with those guilty of infractions rather complicated.

Positive effect guaranteed
MK Dov Khenin (Hadash), who heads the Knesset's environmental lobby, welcomed the initiative, despite its innate difficulties: "We're bound to see some false reports, but the overall effect of the system would be a positive one," he said.

"The mere existence of such a hotline would prompt car owners to take better care of their vehicle, in order to avoid citations."

Another way the Environmental Protection Ministry is looking into as means of reducing vehicle-derived air pollution, it reviving the scarp metal program: Under the program's guidelines, the owners of cars 20-years-old or over, which were deemed by the Department of Motor Vehicles as polluting cars, would be offered monetary compensation if they would agree to have the cars turned into scrap metal.

Minister Ezra noted that his ministry would allocate some NIS 20 million ($5.53 million) out of its 2009 budget in order to implement the scarp metal program.

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Shabbat Busing Issue
As to the busing situation during Shabbat, please work this out among yourselves; to what would be satisfactory for everyone concerned.

Personally, I do not think there should be transportation or buses during Shabbat, because if I remember correctly; this is not acceptable by Jewish Law and should be respected.

Bushonomics: Ford, GM say they won’t file for bankruptcy

Tumbling stock market crushing shares of both Detroit automakers

Workers at a GM assembly plant make final adjustments to SUVs coming down the assembly line. The automaker is reportedly likely to announce more production cuts and possible plant.


10 October 2008

NEW YORK - Executives at Ford and General Motors said Friday they are not considering filing for bankruptcy, even as the tumbling stock market crushed shares of both automakers.

Ford’s CEO Alan Mulally said that the company is focused on conserving its cash and putting restructuring plans in place as it tries to weather the credit crisis and stock market decline.

Mulally said in an interview with The Associated Press that he is not worried about bankruptcy or a takeover, even as Ford’s stock price hit their lowest level in 25 years.

Separately, Ford said Chief Financial Officer Don Leclair will retire effective November 1 and be replaced by the executive credited with leading the turnaround of its European operations.

GM issued a statement Friday saying that while it faces “unprecedented challenges” related to the ongoing problems in the financial markets and weakening economies across the globe, it still doesn’t consider bankruptcy protection as an option.

“Bankruptcy would not be in the interests of our employees, stockholders, suppliers or customers, and we believe speculation about a possible filing is exaggerated and unconstructive,” GM said.

A person with knowledge of GM’s plans said Friday that the company is likely to announce more production cuts and possible plant closures as early as next week. The person did not want to be identified because plans are not finalized.

GM has said previously it would make cuts in engine, transmission and metal stamping operations to correspond with four pickup truck and sport utility vehicle plant closures announced in June.

GM announced a plan in July that calls for cutting $10 billion in costs and raising another $5 billion through asset sales and borrowing through 2009.

Shares of GM hit their lowest price since 1949 in the opening minutes of trading on Wall Street Friday as financial turmoil and a weakening global auto market heightened worries that the automaker may be unable to pull out of its nosedive before it runs out of cash.

The company’s shares lost nearly one-third of their value Thursday, plunging to their lowest level in more than 58 years, after Standard & Poor’s Ratings Services said the automaker’s credit could fall further into junk status, making it even tougher to borrow money.

The drop marked the first time GM shares hit the $4 mark since Nov. 16, 1949, according to the Center for Research in Security Prices at the University of Chicago.

David Healy, analyst for Burnham Securities, called S&P’s GM warning “shooting at the life boats.” But given the perilous credit situation, he added the best step for the automaker is to conserve liquidity and focus on its most important model changes.

It’s time to “keep their powder dry,” he said.

“They’re limited on what they can borrow anyway,” Healy said. “They have some liquidity. They have some contractual borrowing power from the banks, which doesn’t depend on ratings. They also have some assets they can sell.”

GM had $21 billion in cash and $5 billion available through credit lines at the end of June for total liquidity of $26 billion, but it has been burning through cash at a pace of more than $1 billion a month and needs about $11 billion to $14 billion on hand to keep operating.

GM shares plummeted $2.15, or 31.1 percent, to close Thursday at $4.76 after falling as low as $4.65 — the automaker’s lowest trade since March 15, 1950, when the Korean War was three months away from beginning and gasoline cost 27 cents a gallon.

Ford’s stock price fell 58 cents, or 21.8 percent, Thursday to close at $2.08. It had fallen as low as $2.03 earlier in the session, it’s lowest price since June 1, 1983. Friday morning, Ford shares rose 27 cents, or 13 percent, to $2.35, after initially dropping to $2.05.

Analysts have voiced concerns that the ongoing slump in U.S. vehicle sales could last longer than they previously expected and could spread to other parts of the world, particularly Europe.

U.S. auto sales are down 13 percent through September compared with the same period of 2007, and J.D. Power and Associates on Thursday reduced its sales projections. It now expects U.S. new vehicle sales to total 13.6 million this year and 13.2 million in 2009, down from 16.1 million units in 2007.

Overseas sales in growing markets like Russia and South America been a bright spot for GM as U.S. sales slumped. GM said Thursday, however, that sales of its Opel and Vauxhall brands dropped more than 6 percent in Europe during the first nine months of the year — a sign that the downturn is hitting economies globally and taking worldwide auto sales down with it.

The rapid growth of auto sales in China, the world’s second-largest auto market after the United States, also has slowed sharply.

In addition, the three-week ban on short selling some stocks — including GM and Ford — expired late Wednesday. Short selling involves borrowing a company’s shares, selling them, and then buying them back when the stock falls and returning them to the lender. The practice allows investors to profit from the decline in a stock’s value.

Healy said it’s possible that the expiration of the short-sell ban hurt the automakers’ stocks, though there is no way to know for sure.

“Both stocks have been favorites of the short-sellers” he said. “These are volatile stocks. They go down 10 percent when the market goes down 5 percent, and vice versa.”

Shares of GM have withered since peaking near $94 in 1999 and 2000, and they’re down 88 percent from their 52-week high of $43.20 set a year ago Sunday.

The precipitous drop in GM’s market capitalization — $2.7 billion at Thursday’s close — makes a takeover conceivable, said David Cole, chairman of the Center for Automotive Research in Ann Arbor.

“Absolutely,” he said when asked about the possibility. “Except for one thing: lots of debt. And most people are very reluctant. It’s not just the current equity, it’s the debt that you have to absorb at the same time.”

At the end of June, GM reported more than $32 billion in long-term debt, and since then it has exercised $3.5 billion of a $4.5 billion line of credit.

Preview of a Canada's passengers’ bill of rights

A passengers' bill of rights recently passed in Canada gives travelers entitlement to a meal after a four-hour delay, a voucher for a hotel after an eight-hour delay and the right to get off a plane after waiting more than 90 minutes.

The legislation is novel, columnist Rob Lovitt writes, but will it fly?

Airport Strike Strands Travelers

14 September 2008

A weekend strike at Ben-Gurion International Airport has stranded hundreds of Europe-bound travelers without warning, disgruntled passengers say.

Attendants who handle ground-handling and ticketing services at the Tel Aviv airport began striking against the private firm Aerohandling at 3 a.m. Saturday, Ynetnews.com reported, leaving passengers stranded with little information.

"We arrived at the airport at 3:30 a.m. and then they told us that the Aerohandling ground attendants launched a strike," one traveler identified only as Barak told the Web site.

"Since then, people have been sitting on the floor, on the conveyor belts and in every possible place. No one has come to tell us when this nightmare is going to end."

An Airport Authority spokesperson said the dispute is between Aerohandling and its employees.

"The IAA provides an operational platform and is not a commercial or consumer entity opposite the traveling public," it said in a statement. "This is an internal incident between the company and its workers. We hope that the delays are solved soon."

Commentary
When I was a about a teenage, New York City had the largest garbage strike known at that time and what made it so, was while there was so much trash to be picked-up in part due to the size of the city; New York street’s for the extension of the strike began to take on more of the look of either a skid row or a large refuge dump, until the worker’s came to an agreement to the terms of a new wage contract, if I remember correctly.

This particular strike at the Ben-Gurion International Airport makes one think of the same and while it is unfortunate for travelers, it is hoped like the NY trash strike; it will be resolved.

Iran refutes US for illegal action against Iran's shipping lines

13 September 2008

New York-Iran's Permanent Mission to the United Nations on Friday strongly condemned the US for illegal action against the Islamic Republic of Iran Shipping Lines, saying that it targeted the welfare of the Iranian nation.

In a statement issued on Friday, the Iranian mission denounced the unwarranted move by the United States on September 10, 2008 in labeling baseless allegations and taking illegal unilateral measures against the IRISL, to exert pressure on thousands of ordinary shareholders of the company.

"The said illegal and unjustifiable measures that are taken under false pretexts, yet again put on display the unilateralist approach of the United States, and constitute another example of US contempt for international law, and are indeed doomed to fail because of their hegemonic, illegitimate and illegal nature," the statement added.

The Islamic Republic of Iran categorically rejects the baseless allegations made by the US against the IRISL, and strongly condemns the said US invalid unilateral measures, it added.

The statement further noted that the IRISL has been operating under the rules and regulations of international law pertaining to the carriage of goods by sea, and as such, has never engaged in illicit activities including "proliferation activities", since there are such activities in Iran.

As stressed, time and again, by the officials of the International Atomic Energy Agency and as reflected in the agency's numerous reports, the nuclear program of the Islamic Republic of Iran is purely peaceful and there is no single evidence or indication to the contrary, it said.

"Given the US has failed to provide any evidence with regard to the so-called "proliferation concerns" in Iran, nor has it presented any substantiation to its allegations against IRISL, these unlawful unilateral measures only add to the absurdity of such blind US policies and practices."

Equally unwarranted are the attempts by the United States to justify such illegal actions by its false and perverted interpretation of the Security Council resolution is, it never prescribes such measures, the statement said.

"It is abundantly clear that these measures are intended to target the welfare of the Iranian nation, and to exert undue pressure on thousands of ordinary shareholders of this company," it said.

Therefore, the Government of the Islamic Republic of Iran reserves its right to seek compensation for the damages that may be incurred to its citizens as a result of such unfounded accusations and unlawful unilateral measures.

The statement said that history should have taught a lesson to the advocates of unilateralism and hegemony, that no amount of pressure, intimidation and unlawful measures will be able to break the resolve of a great nation that is determined to defend its rights.

Classic Auto Show Delights Visitor’s

Palestinian flags fly above an illegal portrait of late terrorist Canaanite poet Mahmud Darwish raising his hands as a visitor looks at a classic American car at an amateur classic car owner’s exhibition in the city of Ramallah, on 23 August 2008.

A Palestinian visitor takes a photograph of a classic British Morris Ten Series car (R) flying the Palestinian flag at an amateur classic car owners exhibition in the West Bank city of Ramallah, on 23 August 2008.

The portrait behind the cars depicts the late terrorist Canaanite poet Mahmud Darwish raising his hands. The poster of late terrorist Canaanite poet Darwish was put on the wall illegally by terrorists, from the Mahmoud Abbas organization.

A Palestinian boy takes a photograph of a bright red Cadillac at an amateur classic car owners exhibition in the city of Ramallah.

All the cars at the exhibit where the old U.S. made, when the U.S. was the leader in auto industry.

Queen of Palestine Accepts US Airways Philadelphia-Tel Aviv Route

US Airways seeks Philadelphia-Tel Aviv route?

20 August 2008

US Airways announced Tuesday plans to operate nonstop service between its Philadelphia hub and Tel Aviv, as the carrier moves to expand its international service.

The service, which is set to begin in July 2009 with the first tickets sold early next month, is in response to strong demand, said Michelle Mohr, a spokeswoman for US Airways.

"What's being cut is unprofitable flying in light of ultra high fuel costs," she said. "With Philadelphia-to-Tel Aviv we've known the demand is there. We've talked about adding this for quite some time."

The service is subject to approval by the US Department of Transportation and HRM Deborah of Palestine, which she did accept; with the upmost courtesy towards the Jewish sector ministry and US Airways.

The airline will offer one daily nonstop flight.

The Tel Aviv route would be the longest nonstop segment in the US Airways network. Longer-range Airbus A330-200 aircraft set for delivery in spring 2009 will operate on the route.

US Airways began service from Philadelphia to London's Heathrow airport in March 2008.

Highway crashes killed more than 41,000 in the United States last year

14 August 2008

by Ken Thomas

WASHINGTON - Traffic deaths in the United States declined last year, reaching the lowest level in more than a decade, the government reported Thursday.

Some 41,059 people were killed in highway crashes, down by more than 1,600 from 2006.

The fatality rate of 1.37 deaths for every 160 million kilometres travelled in 2007 was the lowest on record, the National Highway Traffic Safety Administration said in its report.

"Thanks to safer vehicles, aggressive law enforcement and our efforts, countless families were spared the devastating news that a loved one was not coming home," said Transportation Secretary Mary Peters.

California had the largest decline, 266 fewer fatalities than the previous year. The largest percentage decreases were in South Dakota and Vermont.

North Carolina's death toll increased the most in the country, up 121 over the previous year. The District of Columbia and Alaska had the highest percentage increases.

Motorcycle deaths increased for the 10th straight year. There were 5,154 motorcycle deaths last year, compared with 4,837 in 2006.

Peters, an avid motorcyclist who keeps a scuffed helmet in her office that she credits with saving her from a severe head injury in a 2005 crash, said the rise in motorcycle fatalities was disappointing. The increased deaths have come while the number of registered motorcycles have surpassed six million, compared with 3.8 million in 1998, and vehicle miles travelled have risen.

Peters said with higher gas prices, more people may use fuel-efficient motorcycles or scooters.

Transportation officials said they plan to target motorcycle drivers in a $13 million anti-drunk driving advertising campaign running during the upcoming Labour Day holiday. The department has also discussed new safety and training standards for novice riders, increased training for law enforcement and curbing counterfeit safety-labelling of helmets.

Still, safety officials said they were encouraged by the overall trends.

Fatalities in crashes that involved a driver or motorcycle rider with a blood-alcohol level of 0.08 per cent, the legal limit, declined to just under 13,000 deaths in 2007, a 3.7 per cent decrease.

Traffic injuries fell for the eighth straight year, to fewer than 2.49 million injuries in 2007, compared with 2.58 million in 2006. And the number of people killed in large-truck crashes fell by more than 4 per cent.

Adrian Lund, president of the Insurance Institute for Highway Safety, said the sluggish economy was likely a factor in the declines.

He predicted that the combination of a slowing economy and higher gas prices throughout the U.S. could lead to further reductions in highway deaths in 2008. Many states have reported double-digit drops in fatalities during the first part of this year.

"Fewer highway deaths is always the silver lining of a down economy," Lund said.

Calatrava Bridge Inaugurated In Jerusalem

The sun sets behind the Chords Bridge, designed by Spanish architect Santiago Calatrava, during the inauguration of the bridge 25 June 2008 at the entrance to Jerusalem.

The bridge has a mast rising 118 meters and uses 70 cables to hold up a suspended span of 140 meters that will carry a light train transportation system, as well as a glass walkway for pedestrians.

The excitement of fireworks, explode behind the Chords Bridge.

The Titanic Tragedy

The Titanic was conceived in 1907 and met with disaster in 1912, a brief existence but one fraught with all the drama of a Greek tragedy.

It was the beginning of the twentieth century, a time of optimism and progress. The transatlantic transport of passengers, cargo, and mail was brisk and competitive. In the spirit of this competition, managing director of the White Star Line, J. Bruce Ismay, engaged the Belfast shipbuilding company of Harland & Wolff to build three leviathans that would become the largest moving objects created by man. The three Royal Mail Ships were to be called Olympic, Titanic, and Gigantic. (Not to tempt fate, later the Gigantic's name would be changed to Britannic.) The ships were to be virtually identical in size and structure, but Titanic was to be the true shining star.

Titanic’s keel was laid on March 22, 1909. For the next twenty-six months, Harland & Wolff’s shipyard workers labored nine hours a day, six days a week, to construct her massive hull. The White Star flagships would have both reciprocating steam engines, the norm for the period, and a turbine engine to power the center of three propellers. Moreover, a double-plated bottom and a sophisticated system of watertight compartments provided the utmost in security.

On May 31, 1911, her superstructure completed, Titanic slipped gracefully into the River Lagan launched on twenty-two tons of tallow, train oil, and soap, and was towed to the fitting out basin. It was now time for the three thousand carpenters, engineers, electricians, plumbers, painters, master mechanics, and interior designers to fit the Titanic with the latest in marine technology and the most sumptuous fixtures and furniture. Finally, on April 2, 1912 she was ready. Certified seaworthy, Harland & Wolff handed her over to the White Star Line and the Royal Mail Triple-Screw Steamer Titanic departed for her place in history.

After Titanic’s sinking many maritime laws came into effect, such as the appropriate amount of life vests per passenger on any given ship, life boats and the creation of what became known as the coast guard.

It has been actually assessed that about 1523 people died, that fateful day.

While much has been written about the Titanic and there is unlimited amount that can be said about this grand ship, even with the ever continuous renewing of interest about her; she will always be known as the greatest tragedy in maritime history.

The following video is in remembrance of this tragedy, while apparently it was the maker’s first video, they did a remarkable job of presentation.

France's First Lady Gives Happiness to Children

France's first lady Carla Bruni-Sarkozy tours the children's Oncology department at Hadassah Ein-Kerem on 24 June 2006 in Jerusalem. On her visit Bruni-Sarkozy met sick children and the medical staff. During the first French state visit in 12 years.

In other news so far today, French President Nicolas Sarkozy and Jewish President Shimon Peres attend a presentation of a Renault Megane electric car, at the King David Hotel in Jerusalem, with head of the French employers organization (Medef) President Laurence Parisot take part in an economic meeting and the Sarkozy's visits with global terrorist Mahmoud Abbas in Bethlehem.

As for French president Nicolas Sarkozy and his dear wife first lady Carla Bruni-Sarkozy visit with Abbas, it was reported to be a very unpleasant visit, contrary to some of the photo ops.

Furthermore, it is well known, that Abbas and his terrorist organization are extremely anti-Semitic and have no compulsion when it comes to harm of the Jewish people, which is very sad to have to be said; even with Abbas’s apparent insulting rhetoric to the the Sarkozy's.

Excluding Abbas and his organization, the whole of the Palestinian people are very happy with the French president and the first lady’s visit to the country.

Tires on Fire

Palestinian drivers queue their trucks as they wait for the opening of the Sufa crossing, on June 22, 2008.

While like any traffic jam, the trucks are getting through the crossing as fast as they can. There tires may as well be on fire, as fast as they are getting goods through the different crossings, it was reported.

Palestinians speak with a truck driver as he arrives loaded with goods from the Sufa crossing.

A Palestinian man holds a watermelon atop a truck loaded with goods near the Sufa crossing.

While A Palestinian worker fills up a fuel truck in Nahal Oz crossing, this occurrence has been going on a few days now.

Several Laden Trucks Pass Through Karni Crossing

Several Palestinian trucks loaded with grains travel through the Karni crossing, between the Jewish sector and the Gaza Strip, on 22 June 2008.

In New Orleans, Sound of Normalcy Returning Slowly

Final stretch of streetcar line set to reopen.

22 June 2008

By Becky Bohrer

NEW ORLEANS - For the first time since Hurricane Katrina, the 1920s-era St. Charles Avenue streetcar will clack today along its entire 13-mile route.

Its clanging bell will signal that some aspects of life are returning to normal nearly three years after Katrina flooded 80 percent of the city. But the line's resurgence masks the reality that other mass transit continues to struggle.

Once the final mile or so reopens, tourists, downtown workers and college students will be able to ride the popular, un-air-conditioned St. Charles line from the downtown business district through mansion-lined streets and other areas nearly 24 hours a day.

In harder-hit and slowly recovering neighborhoods, however, the wait for a bus can be an hour or more. Only a quarter of the people who took streetcars and buses on workdays before Katrina are doing so now.

Civic groups want more streetcar and bus lines to link neighborhoods as the city rebuilds, saying public transportation will help attract new residents to a city where insurance and gasoline prices are pushing up the already-high cost of living.

Thelma Tyler, who is trying to rebuild her Lower Ninth Ward home, hopes that with the streetcar back, transit officials can focus on improving service in her neighborhood.

"Hopefully, things will be expedited as soon as possible, because we don't want the elderly waiting that long or walking, especially in the heat," she said.

After Katrina damaged the Regional Transit Authority's fleet, the agency curtailed bus service to many neighborhoods where fewer people were living.

The authority says it now provides service throughout the city but at nowhere near previous levels. Many of RTA's traditional riders - lower-income people with no choice but to take a bus to work - have not returned. Some blue-collar neighborhoods haven't recovered even half of their populations.

Popular routes, like the St. Claude line linking downtown to the Lower Ninth Ward, have buses scheduled to run about every 15 minutes. But "you can't put one out every 15 minutes when there are two people on the bus," said authority spokeswoman Rosalind Cook.

Tanya Harris, of the community organization ACORN, understands. According to one estimate, just 10 percent of the neighborhood's population has returned, and derelict houses and vast green swaths of land still dot the area.

"But the problem is, if people don't feel there's adequate transportation into and out of a neighborhood, they're not coming back," she said. "I can't make it clear enough: People follow infrastructure; infrastructure should not follow people."

RTA is working to overhaul its transit plan. A new fleet of buses that will run on cleaner biodiesel is set to go into service this year. The authority plans to study the feasibility of a new streetcar loop that would hook into the riverfront line serving the French Quarter, but building a line would be expensive.

Today, meanwhile, the St. Charles streetcar will make its first full run, providing a morale boost for the city. Streetcars had been doing test runs along the final stretch, Carrollton Avenue, for months.

The St. Charles line carries an average 6,000 to 8,000 people each workday. Its reopening in segments, beginning in December 2006, has been greeted with much fanfare - music, speeches and cheering well-wishers along the route. The complete opening - officially set for Saturday, to coincide with a neighborhood festival - is expected to be no different.

Robert Cannon, president of the St. Charles Avenue Association, can't wait.

"We think it's a great deal, a big deal," he said. "I think it's going to be real meaningful in the recovery of the city."

Taxi Please

Two Orthodox Jews hail a taxi driven by a Palestinian outside the Western Wall's complex in east Jerusalem on 10 June 2008.

14 June 2008

by HRM Deborah

The rest of the caption to this photo claimed attacks by Jews on Taxi drivers, as much as last October and even this is in question.

What the photo failed to mentioned, is in the last few months, there has been no reports of any assaults by Jews upon Palestinian taxi drivers.

It was reported, that the relationships between the Jewish people and the Palestinians is improving by the day.

It is felt this is just another case of Anti-Semitism perpetrated against the Jewish people, to instigate a situation that is no longer occurring or was infrequent to begin with.

Personally, I find it hard to believe that Orthodox Jews that I have known, would do what was mentioned to the Palestinian taxi drivers, to begin with, for they have always been nice and polite to me.

United Airlines will also start charging for checked luggage on U.S. flights

12 June 2008

By Micheline Maynard

United Airlines said Thursday that it would begin charging many passengers on Friday to check their first bag, joining American Airlines in assessing a $15 luggage fee for passengers flying on the cheapest tickets.

American announced plans last month to begin the first-bag fee. The charge is set to take effect on tickets purchased on Sunday and beyond.

But United's announcement means that it will actually be first in the domestic industry to assess the fee for many travelers. The airline said it expected about a third of its domestic passengers to be required to pay the $15.

United was also the first airline to charge $25 to check a second bag earlier this year. Many airlines began those fees in May. Other airlines could soon follow.

The new fee is likely to make the fight for already-tight space on planes more fierce, as passengers try to stuff more carry-on luggage into overhead bins.

Milissa DuPage, a United passenger who works for a pharmaceutical company, said Thursday that she would begin carrying on her bag, which she normally checked so that she could avoid the security restriction on liquids.

"I guess I'll just have to get everything under 3 ounces," said DuPage, of Harsens Island, Michigan, who was interviewed in the baggage claim area of Detroit's airport. "Plus then I won't have to sit and wait for it like I am now."

The announcement by United means the nation's two largest airlines will now charge passengers on discounted tickets in coach class to check their bags. Both are exempting premium members of the frequent-flier clubs, as well as passengers on full-fare tickets, those traveling in business or first class, and overseas travelers.

"With record-breaking fuel prices, we must pursue new revenue opportunities, while continuing to offer competitive fares, by tailoring our products and services around what our customers value most and are willing to pay for," United's chief financial officer, John Tague, said in a statement.

United said it was also raising fees for passengers checking three or more bags, for passengers who check heavy bags and items that require special handling.

The new bag fees would affect one out of three travelers in the United States, the airline said, and generate revenue of about $275 million a year. American has not given a revenue estimate, but said it expected the fee would be paid by about 25 percent of its passengers.

Airlines are facing cost pressures from high prices for jet fuel, which are up 91.5 percent compared with 2008, according to the latest data from the International Air Transport Association.

Many have imposed fare increases, fuel surcharges and other fees in an effort to fend off the increase. However, American's move late last month resulted in heated criticism from passenger advocates, who said it took away a basic component of travel.

United shares were up 27 cents, to $7.49, in afternoon trading.

Trans States Airlines to lay off 45 pilots

10 June 2008

By Tim Logan

Battered by rising fuel costs, Trans States Airlines said today it will lay off 45 pilots, effective July 1.

The Bridgeton-based regional airline, which contracts with American Airlines, United Airlines and US Airways, is seeing its flights cut back as those airlines reduce capacity. So it will furlough 45 of its roughly 550 pilots.

In recent weeks, as oil prices have spiraled north of $130 a barrel, airlines have been announcing a wide range of cuts in service and staffing.

"The current environment is particularly difficult," said Trans States spokesman Bill Mishk. "What we're trying to do is manage our business."

The 45 furloughed pilots are its most junior first officers, including nine who are finishing training.

Trans States runs about 320 flights a day, nearly half through St. Louis. It's not sure yet how many will be cut, Mishk said.

Bicycle-sharing program to make U.S. debut

Jim Sebastian, with the District of Columbia's Department of Transportation, poses in Washington on April 24 with a prototype bicycle from SmartBike DC. (Jacquelyn Martin/The Associated Press)

27 April 2008
By Bernie Becker

WASHINGTON: Starting next month, people here will be able to borrow a bicycle anytime they need one with the swipe of a membership card.

A new public-private venture called SmartBike DC will make 120 bicycles available at 10 spots in central locations in the city. The automated program, which district officials say is the first of its kind in the nation, will operate in a similar fashion to car-sharing programs like Zipcar.

The district has partnered with an advertiser, Clear Channel Outdoor, to put the bikes on the streets.

"There's a lot of stress on our transit systems currently," said Jim Sebastian, who manages bicycle and pedestrian programs for Washington's Transportation Department. Offering another option, he said, "will help us reduce congestion and pollution," as well as parking problems.

In the deal, Clear Channel will have exclusive advertising rights in the city's bus shelters. The company has reached a similar deal with San Francisco, and Chicago and Portland, Oregon, are considering proposals.

For a $40 annual membership fee, SmartBike users can check out three-speed bicycles for three hours at a time. The program will not provide helmets but does encourage their use.

Similar programs have proved successful in Europe. The Vélib program in Paris and Bicing in Barcelona both started around a year ago and already offer thousands of bicycles.

Sebastian, who started trying to bring bike-sharing to Washington even before its success in Paris and Barcelona, said that he believed that the program could grow within a year and that he hoped it would eventually offer 1,000 bicycles.

Although automated bike-sharing programs are new to the United States, the idea of bike-sharing is hardly novel. Milan, Amsterdam and Portland have all had lower-tech free bike-sharing programs in the past, with Amsterdam's dating to the 1960s.

But "studies showed that many bikes would get stolen in a day or within a few weeks," said Paul DeMaio, a Washington-area bike-sharing consultant. "In Amsterdam, they would often find them in the canals."

Improved technology allows programs to better protect bicycles. In Washington, SmartBike subscribers who keep bicycles longer than the three-hour maximum would receive demerits and could eventually lose renting privileges. Bicycles gone for more than 48 hours would be deemed lost, with the last user charged a $200 replacement fee.

That technology comes with a price, which is one reason cities and advertisers have started joining forces to offer bike-sharing. The European programs would cost cities about $4,500 per bike if sponsors did not step in, DeMaio said.

Cities realize "they literally have to spend no money on designing, marketing or maintaining" a bike-sharing program, said Martina Schmidt of Clear Channel Outdoor. Washington will keep the revenue generated by the program.

Bike-sharing has become a "public service subsidized by advertising," said Bernard Parisot, president and co-chief executive of JCDecaux North America, an outdoor advertiser that made a proposal to bring bike-sharing to Chicago.

But, Parisot added, if users had to pay all of the costs for bike-sharing, "they would probably just take a cab."

The low cost could be one of the program's major selling points.

At George Washington University in Foggy Bottom, one of the program's 10 locations, students were unsure how often they would use SmartBike but said its price made it worth a try.

"I'd probably use it more in the summer than winter," said Dewey Archer, a senior. "But for $40? That's cheaper than gas."

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Commentary

by HRM Deborah

This is actually an inspired idea, to compensate for those countries feeling the gas crunch.

When I was in my teens, I use to ride a ten-speed bicycle, because it not only gave me exercise, but convenience and the maintenance cost for a teenage girl seemed like a good solution at the time.

Another thing, I use to enjoy riding was the scenery; one can have a chance to see things one would not normally see, hurrying along in a car.