United Continental cutting 600 jobs; Chicago likely affected

United Continental Holdings Inc. will cut about 600 front-office jobs through voluntary and involuntary cuts, the company said Thursday as it announced disappointing financial losses for 2012.

The world's largest airline did not detail where cutbacks will take place, but Chicago is likely to be most affected considering the corporate headquarters and network operations center are in downtown Chicago and that Chicago O'Hare airport is one of the airline's largest hubs.

The job cuts were announced Thursday morning during a conference call about the airline's profits. United officials said they were disappointed in the airline company's 2012 performance and pledged to improve in 2013, both in financial performance and the airline's operational reliability.

They said they intend to win back corporate customers who defected to other airlines last year when the airline experienced periods of poor on-time performance and high cancellations rates. The operational problems, which have abated since the fall, stemmed from numerous computer-related glitches after the airline merged United and Continental customer reservation systems onto a common platform last March.

United CEO Jeff Smisek called 2012 "the toughest year of our merger integration," but that the airline was "back on track."

"Despite our integration pains, we accomplished an enormous amount and we are now in a position to go forward as a single carrier and compete effectively on a global scale," he said. "Our operations are running smoothly. Our many product improvements are rolling out and our customer satisfaction scores are climbing."

Smisek also said the airline maintains its confidence in the Boeing 787 Dreamliner, which was grounded in the U.S. and elsewhere after numerous glitches, including a serious fire hazard with its lithium ion batteries.

He said he had confidence in the airplane and "Boeing's ability to fix the issues just as they have done on every other new aircraft model they've produced."

Smisek said he has no indication on when the Federal Aviation Administration will allow the planes to fly again, including Dreamliner on a route between Chicago and Houston. Boeing is also based in Chicago.

United, the only U.S. carrier currently operating 787 planes, has six Dreamliners. Smisek said the company expects to take delivery of two additional 787s in the second half of this year.

EARNINGS

United Continental said it lost $723 million in 2012, or $2.18 per share. Excluding special charges of $1.3 billion, mostly related to merging United and Continental, the company earned $589 million, or $1.59 per share, meeting Wall Street analyst expectations.

In the fourth quarter, United lost $620 million, or $1.87 per share, compared with a loss of $138 million, or 42 cents per share, in the same quarter a year earlier.

It took charges of $430 million in the quarter, with much of that tied to paying off pension debt and costs for systems integration and training and severance. Excluding items, United said the 2012 quarterly loss was 58 cents a share, compared with a 61 cent loss expected by analysts on average, according to Thomson Reuters I/B/E/S.

Revenue fell 2.5 percent to $8.7 billion.

Superstorm Sandy, which barreled through the U.S. Northeast in late October, reduced revenue by about $140 million and profit by about $85 million in the fourth quarter. The storm caused shutdowns at major New York area airports, including New Jersey's Newark Liberty International where United operates a major hub.

CUSTOMER SERVICE

Customer service will be a larger focus for the airline, Smisek said during the conference call.

That focus includes a comprehensive customer service training program for airport agents, contact center agents and flight attendants, he said. It will also roll out a program called "It's Our Job," a companywide approach to customer service "that clearly explains our customer service standards and expectation for front line coworkers," Smisek said.

It will also include an expanded recognition program to reward employees for outstanding service, collecting more customer-satisfaction data and roll out of a new set of tools for airport agents, he said.

JOB CUTS

As far as the job cuts, they will not affect unionized workers, such as pilots, flight attendants and airport ground workers, a spokeswoman said. The airline in December reduced the officer ranks by several positions, representing 7 percent of managers with titles of vice president and higher. It will reduce management and administrative staff by 6 percent through voluntary and involuntary cuts and not filling empty positions.

Those cuts will begin in early February, Smisek said in a letter to employees Thursday morning.

gkarp@tribune.com

 

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TSX near 18-month high, buoyed by Agrium, RIM

TORONTO (Reuters) – Canada’s main stock index hit a near 18-month high on Thursday, as shares of Agrium Inc rose after the fertilizer maker raised its profit forecast and as U.S. manufacturing and labor data drove optimism on the economic outlook of Canada’s largest trade partner.

Shares of Research In Motion Ltd also boosted the market, rising more than 3 percent after a report that China’s Lenovo Group said a bid for the BlackBerry maker was among the options available to boost its mobile business.

Canadian stocks were also supported by data that showed Chinese manufacturing growth hit a two-year high this month. Gains were kept in check by falling gold stocks, which slipped with the price of the precious metal.

In the United States, a private survey showed that factory activity advanced at the fastest pace in nearly two years this month, while the government reported the number of Americans filing new claims for jobless benefits hit a five-year low last week.

“There’s a growing feeling that we’re heading in the right direction. The U.S. economy is showing a little bit of life, and that’s spilling over into Canada,” said Fred Ketchen, director of equity trading at ScotiaMcLeod.

The Toronto Stock Exchange‘s S&P/TSX composite index <.gsptse> was up 41.36 points, or 0.32 percent, at 12,835.41, after touching 12,863.47, its highest since August 2, 2011.</.gsptse>

Seven of the 10 main sectors on the index were trading higher.

The materials sector, which includes mining stocks, slipped 0.1 percent as declines in gold stocks offset a rise in shares of fertilizer giants Agrium and Potash Corp .

Agrium rose 3.5 percent to C$ 114.55 after it raised its fourth-quarter earnings forecast as strong grain and oilseed prices spurred demand for its fertilizer products over the fall season.

Ketchen, noting the activity in Agrium shares over the past few days, said, “People are taking another look at it, thinking maybe it’s time to get back in.”

Potash was up 2.1 percent at C$ 42.77.

The energy sector gained 0.6 percent and was the biggest contributor to the market’s gains as U.S. crude oil prices rose.

Canadian Natural Resources Ltd rose 1.5 percent to C$ 30.62.

Financials, the index’s weightiest sector, added 0.4 percent. Toronto Dominion Bank

was up 0.4 percent at C$ 83.51, and the Royal Bank of Canada rose 0.3 percent to C$ 61.62.

(Editing by Jeffrey Hodgson and Leslie Adler)

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Aretha Franklin Approves of Beyonce’s ‘Beautiful’ Inaugural Lip-Syncing

LOS ANGELES (TheWrap.com) – Aretha Franklin r-e-s-p-e-c-t’s Beyoncé’s decision to use a “beautiful” pre-recorded rendition of the national anthem during President Barack Obama‘s inaugural ceremony on Monday.

The Queen of Soul, who sang “My Country ‘Tis of Thee” during Obama‘s inauguration in 2009, told ABC News that the cold weather warranted Beyoncé lip-syncing “The Star-Spangled Banner.”

“The weather down there was about 46 or 44 degrees and for most singers that is just not good singing weather,” Franklin said after noting the news gave her a good laugh. “When I heard that I just really cracked up. I thought it was really funny, but she did a beautiful job with the pre-record … next time I’ll probably do the same.”

She says “next time,” because she wasn’t afraid to brave below-freezing temperatures in Washington D.C. when she performed live four years ago. “In 2009, I wanted everything to be live and on the real side for the moment as it actually happened. Those were my feelings for my performance, but having come face to face with 28, 22 degrees I am not surprised she pre-recorded,” Franklin continued. “She wanted her performance to be what she wanted to be and she realized it wasn’t going to be the way she wanted it to be or she was going to be running a risk. That’s probably why she pre-recorded exactly how she wanted it to be heard.”

The 70-year-old Franklin isn’t the only music star shrugging off Beyoncégate. Jennifer Lopeztold Jon Stewart on Tuesday’s episode of “The Daily Show” that “all performers do have to” lip-sync at some point in their career.

“You know, sometimes it happens,” she explained. “When you’re in certain stadiums and in certain venues, they do pre-record things.”

Lopez’s former “American Idol” judging panel partner, Steven Tyler, isn’t particularly bothered by Beyoncé lip-syncing either. “It doesn’t matter,” he told TMZ.

“Beyoncé’s so hot, she can do anything,” the Aerosmith frontman added to give some shallow perspective. “Let’s just get real.”

Whether or not Beyoncé would agree with Tyler’s flattering statement, she has yet to comment on the matter herself, aside from posting the performance on her Tumblr — an action that suggests she has no regrets.

Meanwhile, the U.S. Marine Band that previously admitted to using a pre-recorded track to back her performance and suggested Beyoncé did the same for her vocals, has changed its tune.

“Each piece of music scheduled for performance in the Inauguration is pre-recorded for use in case of freezing temperatures, equipment failure, or extenuating circumstances,” a spokesman for the Marines told TheWrap on Tuesday. “Regarding Ms. Knowles-Carter’s vocal performance, no one in the Marine Band is in a position to assess whether it was live or pre-recorded.”

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Well: Ask Well: Long-Term Use of Nicotine Gum

In small doses, like those contained in the gum, nicotine is generally considered safe. But it does have stimulant properties that can raise blood pressure, increase heart rate and constrict blood vessels. One large report from 2010 found that compared to people given a placebo, those who used nicotine replacement therapies had a higher risk of heart palpitations and chest pains.

That’s one reason that nicotine gum should, ideally, be used for no more than four to six months, said Lauren Indorf, a nurse practitioner with the Cleveland Clinic’s Tobacco Treatment Center. Yet up to 10 percent of people use it for longer periods, in some cases for a decade or more she said.

Some research has raised speculation that long-term use of nicotine might also raise the risk of cancer, though it has mostly involved laboratory and animal research, and there have not been any long-term randomized studies specifically addressing this question in people. One recent report that reviewed the evidence on nicotine replacement therapy and cancer concluded that, “the risk, if any, seems small compared with continued smoking.”

Ultimately, the biggest problem with using nicotine gum for long periods is that the longer you stay on it, the longer you remain dependent on nicotine, and thus the greater your odds of a smoking relapse, said Ms. Indorf. “What if the gum is not available one day?” she said. “Your body is still relying on nicotine.”

If you find yourself using it for longer than six months, it may be time to consider switching to sugar-free gum or even another replacement therapy, like the patch or nasal spray.

“Getting people on a different regimen helps them break the gum habit and can help taper them off nicotine,” Ms. Indorf said.

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United to cut 600 front-office jobs

United Continental Holdings Inc. will cut about 600 front-office jobs through voluntary and involuntary cuts, the company said Thursday as it announced disappointing financial losses for 2012.

The world's largest airline did not detail where cutbacks will take place, but Chicago is likely to be most affected considering the corporate headquarters and network operations center are in downtown Chicago and that Chicago O'Hare airport is one of the airline's largest hubs.

The job cuts were announced Thursday morning during a conference call about the airline's profits. United officials said they were disappointed in the airline company's 2012 performance and pledged to improve in 2013, both in financial performance and the airline's operational reliability.

They said they intend to win back corporate customers who defected to other airlines last year when the airline experienced periods of poor on-time performance and high cancellations rates. The operational problems, which have abated since the fall, stemmed from numerous computer-related glitches after the airline merged United and Continental customer reservation systems onto a common platform last March.

United CEO Jeff Smisek called 2012 "the toughest year of our merger integration," but that the airline was "back on track."

"Despite our integration pains, we accomplished an enormous amount and we are now in a position to go forward as a single carrier and compete effectively on a global scale," he said. "Our operations are running smoothly. Our many product improvements are rolling out and our customer satisfaction scores are climbing."

Smisek also said the airline maintains its confidence in the Boeing 787 Dreamliner, which was grounded in the U.S. and elsewhere after numerous glitches, including a serious fire hazard with its lithium ion batteries.

He said he had confidence in the airplane and "Boeing's ability to fix the issues just as they have done on every other new aircraft model they've produced."

Smisek said he has no indication on when the Federal Aviation Administration will allow the planes to fly again, including Dreamliner on a route between Chicago and Houston. Boeing is also based in Chicago.

United, the only U.S. carrier currently operating 787 planes, has six Dreamliners. Smisek said the company expects to take delivery of two additional 787s in the second half of this year.

EARNINGS

United Continental said it lost $723 million in 2012, or $2.18 per share. Excluding special charges of $1.3 billion, mostly related to merging United and Continental, the company earned $589 million, or $1.59 per share, meeting Wall Street analyst expectations.

In the fourth quarter, United lost $620 million, or $1.87 per share, compared with a loss of $138 million, or 42 cents per share, in the same quarter a year earlier.

It took charges of $430 million in the quarter, with much of that tied to paying off pension debt and costs for systems integration and training and severance. Excluding items, United said the 2012 quarterly loss was 58 cents a share, compared with a 61 cent loss expected by analysts on average, according to Thomson Reuters I/B/E/S.

Revenue fell 2.5 percent to $8.7 billion.

Superstorm Sandy, which barreled through the U.S. Northeast in late October, reduced revenue by about $140 million and profit by about $85 million in the fourth quarter. The storm caused shutdowns at major New York area airports, including New Jersey's Newark Liberty International where United operates a major hub.

CUSTOMER SERVICE

Customer service will be a larger focus for the airline, Smisek said during the conference call.

That focus includes a comprehensive customer service training program for airport agents, contact center agents and flight attendants, he said. It will also roll out a program called "It's Our Job," a companywide approach to customer service "that clearly explains our customer service standards and expectation for front line coworkers," Smisek said.

It will also include an expanded recognition program to reward employees for outstanding service, collecting more customer-satisfaction data and roll out of a new set of tools for airport agents, he said.

JOB CUTS

As far as the job cuts, they will not affect unionized workers, such as pilots, flight attendants and airport ground workers, a spokeswoman said. The airline in December reduced the officer ranks by several positions, representing 7 percent of managers with titles of vice president and higher. It will reduce management and administrative staff by 6 percent through voluntary and involuntary cuts and not filling empty positions.

Those cuts will begin in early February, Smisek said in a letter to employees Thursday morning.

gkarp@tribune.com

 

UAL data by YCharts

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2 men died in high-rise fire after rescuing elderly woman: officials

A high-rise fire on Chicago's south side killed two men and seriously injured a woman.

The two men who died in a South Shore high-rise fire had rescued an elderly woman on the seventh floor and had returned to the burning apartment with fire extinguishers when they apparently were overcome by smoke, officials said today.

Jameel Johnson, 36, and his co-worker, John Fasula, 50, were doing contract work for a cable company when the fire broke out on the seventh floor of the 16-story building in the 6700 block of South Shore Drive Tuesday morning. The two heard an 81-year-old woman screaming for help and placed her inside an elevator and pressed a button to take her to the first floor, according to police and David A. Fields Jr., Johnson’s cousin.

Fasula and Johnson returned to her apartment with fire extinguishers, police said. They were later found by firefighters, collapsed on the floor and were in full cardiac arrest, according to police and fire officials.

The woman collapsed on the floor of the lobby after the elevator doors opened, but was revived by paramedics and taken to the University of Chicago Hospitals, where she was listed in critical condition from smoke inhalation, according to police.

“He died a hero,” Fields said in a telephone interview. “They died saving a woman’s life.”

Johnson, the father of two girls, was working as a private contractor for a cable company, his family said. He did not like being inside high-rise buildings, but the company could not find a replacement, relatives said.

“He went with the understanding that maybe it was just a service call and he could be in and out,” Fields said. “He didn’t want to be in the high-rise building, that was his whole thing. He didn’t want to be there.”

Relatives described Johnson, an Englewood native, as a fun-loving man who did whatever he could to take care of his fiance and two children, ages 14 and 3. Johnson had ventured into different careers over the years, but returned to the cable business about a year ago.

“He was a good father who was just trying to make sure his kids had the best,” Fields said.

He had been with his fiance for 15 years and the family lives in Gary, Ind., Fields said. His youngest daughter still doesn’t understand what happened, relatives said.

“She’s still looking for her father to come home,” said Johnson’s aunt, Rosemary Cohns. “That’s the hardest part.”

Relatives of Fasula said they were not surprised to hear he risked his life for someone else.

“That’s how my brother-in-law was,” said Michelle Kozicki, 65, Fasula’s sister-in-law. “There’s never going to be another one like my brother-in-law Johnny. There’s not a bad bone in his body.”

Fasula was a maintenance manager for the CTA, spokeswoman Lambrini Lukidis said. He started working for the transit agency in 1983.

Fasula’s family knew he was at the apartment building for a “side job,” though she wasn’t sure what the work entailed. Kozicki said it was common for Fasula, who had been married for nearly 40 years, to work jobs outside his day job at the CTA.
 
“He didn’t like to sit still,” she said.

He went out of his way to help his father before he died in 2009. He was with him “every step of the way,” Kozicki said. For example, Fasula took time off of work to drive his father to doctor’s appointments.

Fire officials have said the fire apparently started in a bedroom on the seventh floor. Fire Department spokesman Larry Langford said the cause is undetermined pending further analysis of electrical information.  It does not appear suspicious, he added.

“In short, it generally means we have to have some items looked at,” Langford said of the analysis.

chicagobreaking@tribune.com

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Live Nation to rock London Olympic park in 2013

LONDON (Reuters) – Live Nation Entertainment said on Tuesday it had secured exclusive rights to host major music concerts in London’s Olympic Park and Stadium complex in 2013.

Live Nation, which hosted more than 400 concerts and performances across Europe in the past year, said it has already planned to hold its Wireless Festival and Hard Rock Calling events at the Queen Elizabeth Olympic Park in the summer.

“We are delighted to be staging music concerts at the London Olympics venue, which last year became a globally-recognized site for outstanding performances – both in sport and music,” John Reid, president of concerts at Live Nation Europe said in a statement on the company’s website.

The announcement is a boost for the British government, which provided almost 9 billion pounds ($ 14.25 billion) of public money to build and provide security for the London 2012 Games, quashing criticism that the east London site could become an expensive white elephant after a glorious summer of sporting drama.

The London Legacy Development Corp (LLDC), set up to transform the park into a viable space for entertainment, leisure and work, said the concerts will form part of a series of events that include a cycling festival, a weekend of music and other activities.

LLDC Chairman and London Mayor Boris Johnson said the Live Nation deal was a ringing endorsement of the efforts made to transform the park.

“Along with the other major international sports events we have already secured this latest news proves that the park has a very bright future indeed,” Johnson said in a statement on the LLDC website.

The LLDC is negotiating with West Ham United to try to finalise a deal for the Premier League soccer club to move into the Olympic Stadium.

The deal also provides Live Nation with a venue to stage events that had become a bone of contention for some residents living near London’s Royal Parks, who complained that its summer concerts failed to end at the appointed time and were too loud.

Concert-goers were surprised in July when microphones were suddenly switched off on Paul McCartney and Bruce Springsteen in mid-duet when a Hyde Park concert ran over time.

Financial terms of the London Olympic venue contract have not been disclosed. Details of the music acts and dates to perform at the site will be announced in the first quarter of 2013, Live Nation said.

($ 1 = 0.6316 British pounds)

(Reporting by Paul Casciato; editing by Keith Weir)

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SciTimes Update : Science News From Around the Web

Wednesday in Science, we’re reading about killer penguins, texting moms, asteroid mining, designing a more pleasurable condom and a maple leaf controversy in Canada. Check out these and other science headlines from around the Web.

The Last 925,000 Pounds Are Always the Hardest: Boston’s citywide challenge to lose one million pounds in a year appears to have fallen about 925,000 pounds short, The Wall Street Journal reports. With just a few months left to go, the city’s collective weight loss has reached only about 75,000 pounds. Why did the city diet fail? Maybe it was the “Scooper Bowl” all-you-can-eat ice cream festival.

Andy Isaacson for The New York Times

An Adélie penguin colony in Cape Royds, Antarctica.

No Escape from a Hungry Penguin: Hungry penguins with tiny video cameras strapped to their backs have given scientists a rare glimpse of their killer feeding habits, reports The Guardian. In more than 14 hours of filming using cameras strapped to 11 Adélie penguins, not once did a bird fail to capture its prey. Penguins are such efficient killers, most of their victims have no time to hide, while others try in vain to flee. Watch it all on Penguin-cam.

The Condom Gets a Makeover: Most condoms are made of latex. Los Angeles design company Strata has developed a new silicone condom it claims not only does a better job blocking viruses and bacteria, but also scores more points in the pleasure department. You can learn more about the “Origami” condom and watch a video at New Scientist (registration required).

Mathieu Belanger/Reuters

New Canadian money seems to depict a species of maple leaf that is not Canadian in origin.

Canada Turns Over a New Leaf: Canada’s new $20, $50 and $100 bills appear to have the wrong maple leaf on them, reports BBC Canada. Botanists say the bills feature a Norwegian maple leaf, with five lobes, rather than the Canadian sugar maple leaf, which has just three lobes. Bank of Canada officials say the image is a “stylized blend” of maple leaves created with the help of a botanist and designed to avoid regional bias.

Universal Art: Scientists use thin sections of meteorites to study the history of the universe. But to the rest of us, they are just really pretty. Scientific American offers a slide show revealing the stained-glass beauty in ancient meteorites.

Erin Siegal/Reuters

An employee at Google resting in a nap pod, which blocks out light and sound.

Businesses Invest in Sleep: Tired office workers cost businesses billions in productivity and it’s estimated that one in three workers doesn’t get enough rest. As a result, some companies are now offering sleep talks and special lighting to promote better sleep among the staff, reports The Wall Street Journal. Google offers its workers a sleep pod for midday power naps.

Men More Likely to Cheat at Science: Men are more likely than women to commit scientific fraud, reports Science Daily. A new study in the journal mBio found that in 215 cases of scientific fraud in the records of the United States Office of Research Integrity, 65 percent were blamed on men.

Anti-Bacterial Soap Ingredient Found in Lakes: Triclosan, the common ingredient found in antibacterial soaps and toothpastes, is showing up in increasing amounts in Minnesota lakes, Science360 reports.

Mining Asteroids: A team of entrepreneurs and engineers announced plans for a space mining company that would turn asteroids into rocket fuel, solar panels and components for spacecraft orbiting the earth, reports The Christian Science Monitor. In theory, mining asteroids should be cheaper than hauling materials from earth. Watch a video discussion on CBS This Morning. National Geographic also reports on the perils and promise of mining asteroids.

Tony Cenicola/The New York Times

Alcohol Hinders Sleep: While many people think a nightcap might help them sleep, drinking alcohol before bedtime actually reduces sleep quality, reports WebMD. The review of 27 studies found that while alcohol does allow healthy people to fall asleep quicker and sleep more deeply for a while, it also reduces rapid eye movement (REM) sleep.

Moms Text Behind the Wheel: Having a baby on board does not curb a new mother’s texting and cellphone use, reports USA Today. A new survey shows that 78 percent of mothers with children under age 2 acknowledge talking on the phone while driving with their babies. Meanwhile, 26 percent say they text or check their e-mail – behavior that rivals that of teenage drivers. Nearly two-thirds of them said that they have turned around to deal with their baby in the back seat while driving.

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Chicago hotel occupancy climbs back

Visitors filled downtown hotel rooms in 2012 at a rate not seen since before the recession.

Hotel occupancy rose to 75.2 percent, up from 72.2 percent in 2011, according to an announcement by Choose Chicago, the city's tourism and convention agency, and Mayor Rahm Emanuel. The 2012 level matched a previous record set in 2007.

Hotel operators also saw increases in two other key measures, though those remain slightly below their peaks. The average daily room rate rose to $187.27, from $177.33 in 2011. And the revenue per available room, a key indicator of profitability, increased by 10 percent to $140.76.

The data comes from STR Global, with analysis by Choose Chicago.

Among the factors affecting performance, officials said, was a more aggressive marketing strategy. They cited Choose Chicago's regional advertising campaigns. An eight-week winter and 12-week summer campaign, at a combined cost of $2 million, targeted Cincinnati, Detroit, Grand Rapids, Indianapolis, Milwaukee and St. Louis.

The improved performance, along with a hike in the city's hotel tax rate, brought the city's hotel tax revenue to more than $100 million for the first time. This was an increase of $25 million, or 33 percent, from 2011.
 
The city share of the hotel tax increased by 1 percentage point last year, bringing the total Chicago hotel tax rate to 16.39 percent. The city's share of that is 4.5 percentage points.

 kbergen@tribune.com | Twitter@kathy_bergen

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Police rescue dog from Lake Michigan ice

A dog stuck on Lake Michigan near Jackson Park Harbor. (WGN - Chicago)

By Carlos Sadovi




Tribune reporter

11:38 a.m. CST, January 22, 2013

After several hours of trying, Chicago police rescued a dog from the ice at Jackson Park Harbor this morning, officials said.

Marine Unit officers were called to the 6700 block of South Lake Shore Drive at about 7:30 a.m. after someone spotted the black dog in the middle of the frozen harbor, police said.

The dog was rescued at about 10:30 a.m. after animal control officers were called to the scene and tranquilized the dog. Police officers then went onto the ice and retrieved the animal, police said.

Officers had tethered themselves and put on cold weather gear as they tried to reach the dog, police said. At one point, the dog appeared to make it to shore, only to dart back onto the ice, police said.

Witnesses called police when they couldn't reach the animal, officials said.

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