Delta Air Lines Inc.'s Comair commuter-unit pilots approved a five-year contract that will give the pilots the best pay in their industry and end a strike eroding earnings by as much $2 million a day at Delta. The Air Line Pilots Association, which represents about 1,400 pilots at the Cincinnati-based carrier, said pilots voted in favor of the contract by a 64 percent margin, with 733 pilots voting for the contract and 408 against. Comair said it expects to resume some flights by July 2 and that it will discount fares to lure back customers. Comair was the second-biggest U.S. commuter carrier, running some 800 daily flights, before the strike began March 26. The carrier flies under the Delta Connection banner, operating mainly through Cincinnati and feeding passengers to Delta's larger planes.
Mellon Financial Corp. plans to open a new London headquarters for its European operations in two years, the company said Friday. Some 1,200 current staff in the United Kingdom will be based in a new building in London's Times Square, consolidating six locations in the city into one, said John Groom, head of Mellon Europe. The building is now under development. Mellon will be the anchor tenant, occupying some 180,000 square feet over seven floors, with an option to take another 45,000 square feet for another 300 new employees as Mellon expands its operations across Europe. Mellon has offered services in Europe for 30 years, and is expanding its asset management, securities services and consulting businesses.
Technicians at an AT&T Broadband operations center in Pittsburgh have voted to join the Communications Workers of America. The technicians voted 239 to 158 in favor of joining the union. About 436 technicians and warehouse employees were eligible to vote. The AT&T operations center is located on Corliss Street and was formerly owned by TeleCommunications Inc. The union will begin contract negotiations as soon as results are certified and a bargaining survey is conducted of new members. AT&T spokesman Dan Garfinkel says the company will respect the right of its employees to join a union.
PNC Bank has dropped to $200 from $1,000 its minimum, checking-account balance required to avoid the $10 monthly fee. The bank cut the service charge this week in the Pittsburgh market, having reduced the fee at its Cincinnati and New Jersey banks last month. PNC retained the minimum-balance requirement of $2,000 on its interest-bearing checking account. Regular checking customers at Mellon Bank must pay $12 if their balances fall below $1,000. National City Bank's regular checking customers must maintain at least $750 to avoid a $9 monthly service fee.
Pittsburgh-based General Nutrition Companies Inc., the target of several class-action lawsuits from its franchisees, announced several new perks at the franchise owners' annual convention in Orlando, Fla. Among the benefits for owners of the chain's franchise stores are: extension of payment terms of products purchased from GNC, free shipping of special orders, free product samples when GNC introduces a new brand or product line, and additional discounts when franchise owners order in greater bulk. About 1,000 franchise owners attended the convention.
Bright Plaza Inc./OnTV Pittsburgh, a six-year-old Website and technology development company based in Pittsburgh, has been tapped by the Joint Research Centre of the European Commission to create a prototype privacy system to establish a global European standard. It will be based on a prototype already distributed by Dr. Robert Thibadeau, founder and chairman of Bright Plaza and principal research scientist at Carnegie Mellon University. The system will be available royalty-free for use and further development.
Alcoa Inc. said Friday it will shut down Northwest Alloys, its magnesium smelter operation in Addy, Wash., as of Oct. 1, citing high production costs and unfavorable market conditions. The Northwest Alloys plant had been operating at 30,000 metric tons per year, while its capacity is 45,000 metric tons per year. The plant employs 325 workers, and Alcoa says 300 will be laid off by Dec. 31. Alcoa says it will source its magnesium requirements through other suppliers.
Duquesne Light Co. said it has spent $60 million on upgrading its electricity transmission and distribution system in an effort to prevent power outages during severe storms. The improvements include upgrading circuits as well as installing equipment that limit the spread of outages. The company, which has 500,000 customers in southwestern Pennsylvania, has increased the number of maintenance centers from five to nine.
Japan's parliament approved a bill that will let companies adopt pension plans based on the 401(k) model used in the U.S., changing the way the country's 80 trillion yen ($644 billion) pension industry operates. Starting in October, Japanese firms will be able to set up defined-contribution plans paying benefits based on employee-chosen investments, rather than continue carrying the burden of programs that guarantee fixed returns. Differences from the U.S. model are that tax exemptions for pension assets are low, and employers are not obliged to match employee contributions.
Gov. Tom Ridge Friday named Glen Thomas, 32, a native of Berks County, as chairman of the Public Utility Commission. Thomas' nomination to the PUC was confirmed by the state Senate last week. He replaces John M. Quain, who stepped down yesterday after eight years. Thomas was deputy policy director for Ridge's policy office.
The number of members of the US Airways frequent flyer program who receive electronic monthly statements has topped 1 million. Judith Luck, a Virginia woman, received 100,000 bonus frequent flyer miles for being the 1 millionth member of US Airways E-Statements program.
Pittsburgh-area stocks fell on Friday. The Bloomberg Pittsburgh Index, a price weighted list of companies with operations in the region, declined 1.25 to 188.53.
From staff reports, The Associated Press, Dow Jones, Knight-Ridder, Reuters and Bloomberg News.
