Struggling US Airways unveiled a new long-term strategy aimed at becoming profitable again. Within the next year, the Arlington, Va.-based carrier plans to switch to smaller jets for such main destinations as Boston, New York, and Washington, to cut down on the number of vacant seats. The US's sixth-largest carrier needs approval from pilots to increase its fleet of 59 regional jets, but some pilots threatened to block aspects of the plan.
Shareholders of Georgia-Pacific Group and Plum Creek Timber Co. approved a $4 billion merger, creating the US's largest pure timber company. The deal, announced in June with little fanfare, also includes the assumption of $715 million of Plum Creek debt. The Seattle-based company is one of the largest landowners in the US, with holdings in the Northwest, South, and Northeast, and nine wood-products mills. Atlanta-based Plum Creek, owned by Georgia-Pacific, manages 4.7 million acres of timberland and sells timber and wood fiber to industrial customers.
Egghead.com, the online technology merchant, filed for protection from creditors under Chapter 11 of the federal bankruptcy code. The company said it would sell its website and other related assets to Fry's Electronics, a chain of 18 stores in California, Texas, Arizona, and Oregon. Egghead also laid off 185 of its 315 employees.
Five hundred workers will be laid off by year's end as Korean Air's restructuring plan unfolds, the carrier announced. The company reported a loss of $115 million over the first six months - $87.3 million more than in the same period last year. It also is expected to be barred this week by the Federal Aviation Administration from expanding service to US destinations because of safety concerns.