Business & Finance
US Airways said it will shut down MetroJet, its low-cost unit based at Baltimore-Washington International Airport, by December. The carrier cited plummeting demand and the closing of Washington's Reagan National Airport following the Sept. 11 terrorist attacks. The move comes a week after the carrier cut 11,000 jobs and reduced operations by 23 percent. MetroJet serves 19 cities in the East and Midwest.
Continental Airlines no longer is in danger of filing for bankruptcy protection, thanks to the industry-relief package passed by Congress, officials said. The carrier expects to get more than $300 million from the government. Continental has, however, announced about 12,000 layoffs.
American Airlines chairman Donald Carty said he'll forego the rest of his $772,500 annual salary and is buying 40,000 shares of American stock to help restore confidence in the company. American last week announced it would cut 20,000 jobs following the terrorist attacks. Carty encouraged other employees to take voluntary pay cuts, saying the company will put 20 percent of the savings into an educational fund for the children of pilots and flight attendants who died in the attacks.
Herman Miller, a leading maker of office furniture, said it will cut another 750 jobs as it consolidates operations and transfers work to suppliers. Since January, the Zeeland, Mich., company has reduced its workforce by 2,600.
Dairy Mart and Phar-Mor Inc., two regional retail chains, filed for protection from creditors under Chapter 11 of the federal bankruptcy code. Phar-Mor also said it would close about half of its 139 pharmacy/convenience stores. The company previously was under bankruptcy protection from 1992 to 1995. Dairy Mart, which operates or franchises 550 convenience stores, said it does not expect to lay off employees. Dairy Mart's headquarters are in Hudson, Ohio. Phar-Mor is based in Youngstown, Ohio.