BUSINESS BRIEFS
Fuel surcharges end, but air tickets still cost the same
Advertiser news services
Airlines last week eliminated or significantly lowered fuel surcharges for tens of thousands of domestic fares, but consumers are not paying less for most tickets.
An analysis by www.FareCompare.com at USA Today's request reveals that many airlines folded the amount of the surcharge into the airfare, so for most tickets, travelers are paying the same as before the change.
Until last week, many airlines' domestic airfares had fuel surcharges. American has since eliminated most domestic surcharges and reduced many others. Competitors followed.
Most surviving high surcharges are on Hawai'i routes. On Wed-nesday, American had 4,000 domestic coach or first-class fares with a $280 surcharge; Delta had 6,000 with a $289 surcharge.
NRG ENERGY INC. REJECTS EXELON BID
PHOENIX — Power generator NRG Energy Inc. yesterday rejected an unsolicited $6.1 billion all-stock bid from nuclear power giant and utility operator Exelon Corp., calling the offer that would create the nation's largest power company too low.
Princeton, N.J.-based NRG Energy said it also rejected the proposal because Exelon has yet to line up the financing for the deal.
Chicago-based Exelon made the offer last month. It has said the combined Exelon and NRG would have a diverse power mix and a market capitalization of $40 billion.
NRG said its shareholders would end up owning 17 percent of the combined company while contributing 30 percent of the merged company's free cash flow in 2008.
CHINA UNVEILS $586B STIMULUS
BEIJING — China unveiled a $586 billion stimulus package yesterday in its biggest move to inoculate the world's fourth-largest economy against the global financial crisis.
The Cabinet approved a plan to invest the money in infrastructure and social welfare by the end of 2010, a statement on the government's Web site said.
The statement did not say how much of the spending is on new projects and how much is for ventures already in the pipeline that will be speeded up.
China's export-driven economy is starting to feel the pinch of weakening U.S. and European economies, and the government has already cut key interest rates three times in less than two months in a bid to spur economic expansion. Economic growth slowed to 9 percent in the third quarter, the lowest level in five years and a sharp decline from last year's 11.9 percent.
ITALIAN AIRLINE'S WORKERS TO STRIKE
ROME — Unions for Alitalia pilots and flight attendants have called a strike for Nov. 25.
The unions say it will be the first in a series of one-day strikes to protest a plan by Italian investors to rescue the ailing airline by laying off workers and cutting routes.
Alitalia's bankruptcy administrator has warned against strikes, but the unions said in a statement yesterday that they also plan a total of 14 days of walkouts between December and May.
Some unions have agreed to the deal. But unions for pilots and flight attendants are unhappy about criteria for who gets laid off and for part-time workers.
