AT&T to offer new consumer service packages
Philadelphia: AT&T plans to offer more consumer services, ranging from online content to wireless and high-speed Internet access, to prevent its residential business from becoming as extinct as the rotary dial telephone. The No. 1 US long-distance telephone company plans to reverse a more than 4-year decline in residential long- distance sales and a formal announcement on the new service packages, or "bundles," could come as early as next week. "We really need a larger bundle to sell -- that is local, long distance, data, digital content, wireless -- all this becomes interesting to our customers," said John Polumbo, president of AT&T Consumer, during the company's first-quarter earnings conference call.
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Enron to form company with international assets
Houston: Bankrupt Enron on Friday said it would go ahead with a plan to bundle its international assets into a company whose shares would be distributed to creditors who are owed billions. The proposed company, temporarily dubbed InternationalCo, would be formed from Enron's ownership or interest in 19 separate natural gas and electric utilities and pipelines. Most are located in the Caribbean and Latin America. The former energy giant, felled by an unprecedented financial scandal in 2001, is already undertaking a similar plan for its three domestic pipelines, forming an entity called PipeCo. It announced that plan in March, and at the time said it would do the same with its international interests.
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Air Canada pilots offer to take two-month wage cut
Montreal: Air Canada's pilots are offering their insolvent airline a two-month, 10-percent wage cut to try to help ease its cash flow problems, their union said on Friday. The 3,300 pilots at Air Canada, the largest airline in Canada and No. 11 in the world, will vote to ratify the offer by May 23. It calls for a 10-percent wage cut for June and July. "The Air Canada pilots recognize the gravity of our company's financial situation, and we are willing to make an immediate contribution to help alleviate current cash flow pressures," Captain Don Johnson, president of the Air Canada Pilots Association, said in a statement.
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SARS could cost Asia $28 billion
Singapore: The outbreak of SARS will reduce economic growth in Asia this year, translating into huge losses in income and output, reports UPI. The Asian Development Bank (ADB) estimated Friday those losses would range from $12 billion to $27.7 billion for East and Southeast Asia should SARS extend into the third quarter of 2003. In a report on the economic implications of SARS, the ADB estimated that if the epidemic lasted only one quarter it was likely to shave off 0.3 percentage points of growth in East Asia, down to 5.3 per cent; and 0.6 percentage points off growth in South East Asia, down to 3.4 per cent. But if the outbreak last over two quarters, it would likely take off 0.9 percentage points off growth in East Asia, down to 4.7 per cent, and 2.5 percentage point off growth in South East Asia, down to 2.5 per cent.
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Germany's SAP keeps margin target
Manheim: German software giant SAP AG on Friday stuck to its forecast that its operating margin for 2003 would rise by about one percentage point, saying it was well placed to deal with weaker economic conditions. Assuming modest revenue growth, the group expected to lift 2003 operating margins by around one percentage point from 22.7 per cent in 2002, Chief Executive Henning Kagermann said in remarks due to be delivered to shareholders. Shares in SAP, Europe's biggest software maker, were up 0.66 per cent at 91.95 euros by 1006 GMT, outperforming the Stoxx European technology index, which was down 0.75 per cent.
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American Airlines sets fare hike, United matches
Chicago: American Airlines and United Airlines, the two largest US air carriers, on Friday said they will raise all nonsale domestic fares by $5 each way starting June 1 as carriers look for ways to stop huge losses. Neither airline identified the reason for the increase, though it goes into effect the same day passenger security fees will be suspended temporarily under a government relief plan set to help airlines weather a travel slump from the war with Iraq. American, a unit of AMR Corp. and the world's largest air carrier, on Thursday raised all published fares within the United States and Canada by $5 one-way and $10 roundtrip for travel on June 1 and later, a spokeswoman said. Bankrupt United, the No. 2 US air carrier and a UAL Corp. unit, matched the increase, a spokesman said.
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MS introduces new pricing for Xbox Live
Los Angeles: Microsoft Corp on Thursday introduced a more flexible pricing plan for its Xbox Live online video game service, including a planned free trial period, and raised the price on the basic starter kit. The news was one of the first major announcements to come out ahead of next week's Electronic Entertainment Expo, or E3, the games industry's main trade show in Los Angeles. Microsoft, which is expected to roll out a number of new audio and video services related to Xbox Live at E3, said subscribers will have the option of a $5.99 monthly fee in North America as of this fall.
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