California Economic Performance Scorecard

(June 6, 2008) CalChamber President and CEO Allan Zaremberg yesterday unveiled the findings of a recent survey of business executives detailing their attitudes about the state’s economy, business climate, and budget. In addition, CalChamber issued a first-of-its-kind “California Economic Performance Scorecard” ranking the state 38th of fifty, based on measurements of economic health and future competitiveness.

“This assessment of California’s business climate shows what we all know – the economy, the state budget crisis, and quality of life issues are all weighing heavily on the minds of business owners,” said Zaremberg. “What is particularly interesting in this survey is that California companies remain optimistic about their ability to weather these challenging economic times and remain competitive in the future. In addition, both the business climate survey results and the economic performance scorecard indicate that there is no higher priority than to reform our educational system.”

For more: http://www.calchamber.com/CC/Headlines/06062008TS.htm

For the Executive Summary: http://ontario.org/ExecutiveSummary.pdf

Oil Surge Is a Fresh Hit to Economy

Crude's nearly $11 leap to $138.54 -- the largest price jump ever -- is reinvigorating worries about the economy. The sudden jolt has left some OPEC officials wondering whether the market had lost all logic, and is sure to add fire to accusations that the price rise is largely the work of market speculators.

Recession Fears Reignited

Unemployment rose sharply and payrolls shrunk for the fifth consecutive month, increasing the likelihood that the U.S. is in a recession. The news -- along with surging oil prices -- dashed lingering hopes that lower interest rates and fiscal stimulus were sufficient to help the U.S. economy right itself.

Unemployment Rate Jumps to 5.5%

The U.S. unemployment rate posted its sharpest one-month increase in 12 years last month, suggesting U.S. consumers already facing a housing slump and soaring gasoline prices now confront growing pressure from a weakening jobs market. The unemployment rate jumped 0.5 percentage point to 5.5%, its highest level since October 2004.

Meanwhile, nonfarm payrolls, which are calculated by a separate survey, declined 49,000 in May, the fifth straight drop. The decline was broad based, including manufacturing, construction, retail trade and business services.

United expected to ground dozens of aircraft

United Airlines is expected to ground dozens of its least fuel-efficient aircraft, including Boeing 747 jumbo jets, as part of sweeping cuts intended to help the carrier conserve cash and surviving a daunting environment as a stand-alone company.

The Chicago-based airline intensified planning for the initiative as it cooled on a potential merger with US Airways in mid-May, say people familiar with its plans. United is expected to announce the cuts as early as Wednesday.

With the economy in a downdraft, capital constraints have made large-scale mergers largely unfeasible, forcing carriers like United to seek other ways to cut capacity in an effort to gain sufficient pricing power to cover rising fuel costs.

United plans to retire the workhorses of its domestic fleet: 94 decades-old Boeing 737 jets, single-aisle planes that seat up to 123 passengers and shuttle over medium-range distances, say people close to the company.

JetBlue focuses on becoming more competitive, CEO says

JetBlue CEO David Barger expects capacity in the industry to decline as carriers continue to struggle with higher fuel prices. He noted during a Q-and-A with USA TODAY that a solid brand and a solid balance sheet will help JetBlue survive the downturn in the industry. JetBlue executives also said that they continue to plan for higher oil prices.

United closer to Continental alliance, puts US Airways talks on hold

United Airlines is close to forming an alliance agreement with Continental, and its plans to merge with US Airways are on hold for now, according to media reports. United and US Airways have held merger negotiations for nearly two months. United CEO Glenn Tilton raised concerns about the plan at a meeting Thursday, according to media reports.

United, US Airways CEOs will meet to discuss merger

US Airways and United Airlines chief executives are expected to continue to discuss a possible merger today, according to media reports. The carriers have not agreed on who would run the merged airline or on an exchange rate for a share swap. If the companies make progress, they could approach their boards in June for permission to move forward with the merger, media reports say.

UPS, DHL in Air-Freight Talks

UPS said it is working toward an agreement with DHL's U.S. Express unit to carry air freight for some DHL units within the U.S. UPS predicts the deal, when finalized, will add up to $1 billion in annual revenue. UPS and DHL will retain their own brands under the deal.

United Leads Round Of Airfare Increases

NEW YORK -- Turns out that new airline checked-bag fee wasn't the end of it.

Airlines ratcheted up the pressure on fliers ahead of the holiday weekend, significantly raising ticket prices to offset the runaway cost of fuel. The three biggest carriers each boosted most domestic fares by up to $60 roundtrip, while budget airline AirTran Airways raised its leisure fares by $30 roundtrip.

AP Photo/Carolyn Kaster, File

UAL Corp.'s United Airlines led the round of increases late Thursday, lifting roundtrip ticket prices by $10 to $60, depending on how far passengers fly and the competition on the route. Travelers will pay the biggest increase on routes of 750 miles or more -- less than the distance from New York to Chicago -- that low-cost carriers such as Southwest Airlines Co. don't serve.

"It's part of all the work that we're doing to try to offset fuel costs," spokeswoman Robin Urbanski said.

AMR Corp.'s American Airlines, the biggest U.S. carrier, and No. 3 Delta Air Lines Inc. matched the increase Friday.

Separately, AirTran raised leisure ticket prices by $30 and business-class fares by $50 roundtrip. Such a large change is unusual for a budget carrier.

The increases came just days after American said it would begin charging customers $15 to check a single piece of luggage. Representatives from a number of other carriers, many of which are already charging $25 for a second checked bag, said they are considering following suit.

"Everything is under consideration with fuel the way that it is," AirTran Holdings Inc. spokeswoman Cynthia Tinsley-Douglas said.

Airlines have come under intense pressure to boost revenue and cut costs as the cost of fuel has soared. As of Monday, spot prices for jet fuel in New York were up 43% from the start of the year, according to the Energy Information Administration.

Chicago-based United has been among the most aggressive carriers in pushing fares and fuel surcharges higher, and its increases are often rapidly matched by competitors. Airlines are prohibited from agreeing to simultaneously raise fares, but nothing prevents them from following a rival's lead.

"Airlines have no choice but to pass on the cost of fuel to consumers and when passengers do begin to push back in significant numbers the airlines have no choice but slash capacity," said Rick Seaney, chief executive of FareCompare.com, in an e-mail. He said this latest round would mark the 16th attempted airfare increase of the year. About 11 of those stuck to some degree.

In another sign of the pressure facing air carriers, Northwest Airlines Corp.'s cargo division said Friday it was raising its fuel surcharges on domestic and some international routes.

Midwest Airlines and Frontier Airlines, meanwhile, became the latest carriers to announce charges for second checked bags Friday. Neither introduced fees to check a single bag.

On Wall Street, airline stocks took a beating as oil prices resumed their climb, with benchmark light, sweet crude rising $1.38 to settle at $132.19 a barrel on the New York Mercantile Exchange.

Shares of UAL, Delta, Northwest and US Airways Group Inc. each hit their lowest points since the carriers emerged from bankruptcy protection, while AirTran shares were trading at their lowest point in more than five years. AMR shares hit a multiyear low Wednesday.

Mesa may file for bankruptcy protection

Mesa Air Group said it may file for bankruptcy protection. The airline said the loss of monthly revenue from a contract with Delta Air Lines could force it to default on debt. Mesa has filed a lawsuit against Delta to prevent it from ending the contract.

Southwest Airlines co-founder Herb Kelleher will preside over his last annual meeting at the airline on Wednesday. Kelleher, who helped found Southwest 37 years ago, will continue to work for the carrier, but his contract does not state his duties. He has served as a board member, executive chairman, president and chief executive of the carrier. "I enjoy work. You can refer to me as a drone, a worker bee. I always have enjoyed it," Kelleher said. "I hope I can still be useful."

Ontario Chamber Fights For Business At State Capitol

The Ontario Chamber of Commerce led a delegation of business leaders to Sacramento May 19, 2008 to meet with key elected officials on important issues impacting the Ontario business community. The Chamber also met with members of the Governor’s staff to discuss critical business issues pending in the State Legislature.

“Our lobbying effort in Sacramento is part of our continuing effort to effectively represent the interests of Ontario business with government,” stated Jennifer Resch-Silvestri, Chairwoman of the Ontario Chamber Board of Directors. “Informing our elected official on issues that this Chamber supports and opposes and finding ways to improve our local economy is our top priority,” continued Resch-Silvestri.

Last year, the Ontario Chamber of Commerce Board of Directors created the Government Affairs Council (GAC) and authorized it to act on behalf of the Board of Directors to approve any public policy positions that align with the Chamber’s Policy Platform. The GAC determined the following issues that were discussed with Sacramento officials throughout the day-long trip:

Governor’s Budget Stabilization Act

The Ontario Chamber supports the concept of a state budget savings account or “rainy day fund” to protect the state from future budget deficits. However, the Chamber reserves its right to take a position on a specific legislative proposal once introduced in the State Legislature.

SB 1539 (Calderon) Meal Periods

The Ontario Chamber supports SB 1539 that will provide clarity and guidance when complying and enforcing employee meal periods (meal breaks). The proposed law is a comprehensive solution that serves employers and employees regardless of the size or union status.

AB 3025 (Lieber) Polystyrene Packaging

The Ontario Chamber opposes AB 3025 because it would prohibit a business from selling expanded loose fill packaging (commonly referred to as “packaging peanuts”). This proposed law fails to recognize the resource efficiency and environmental benefits of the loss fill packaging material. This could ultimately impact multiple businesses that ship goods and materials as a main component of their business.

“We look forward to our elected officials taking the lead on these three important issues to ensure that our regional business community remains prosperous,” stated Mark Smiley, President/CEO of the Ontario Chamber. “Our businesses can count on the Ontario Chamber to make sure their voices are heard in Sacramento,” Smiley continued.

For more information on the Ontario Chamber’s efforts in Sacramento, log on to: www.OntarioAdvocacy.biz

American Axle, UAW Reach Tentative Agreement

DETROIT -(Dow Jones)- American Axle & Manufacturing Holdings Inc. (AXL) and the United Auto Workers reached a tentative agreement late Friday, a move that could end a nearly three-month strike that has strained labor-management relations at the auto supplier and crimped production at General Motors Corp. ( GM).

Both the company and UAW confirmed the tentative deal, but neither side gave details.

About 3,650 employees represented by the UAW at five American Axle plants in Michigan and New York have been on strike since Feb. 26.

The deal must still be ratified by American Axle workers before the strike ends. The UAW said it will present details of the agreement to workers in Detroit at 10 a.m. local time Sunday.

Housing Starts Post Unexpected Increase

Home construction turned up unexpectedly in April and showed surprising vigor, making the biggest increase in two years, while building permits also rose, a sign of optimism for the sickly housing sector. Housing starts increased 8.2% to a seasonally adjusted 1.032 million annual rate, driven higher by a surge in apartment building construction, the Commerce Department said. Starts plunged by a revised 13.8% in March to 954,000. Economists expected April starts to drop by 1.4% to a 934,000-unit annual rate.

Kennedy 'Resting Comfortably' in Hospital Following Seizure

Sen. Ted Kennedy is "resting comfortably" in the hospital after suffering a seizure this morning in Massachusetts, his office said in a statement. He is undergoing a battery of tests and it is unlikely there will be any further word on his condition for the next 48 hours, the senator's office said. It doesn't appear the longtime Democratic lawmaker had a stroke as initially suspected, according to a spokeswoman.

Kennedy was transferred to Massachusetts General Hospital in Boston for evaluation after initial treatment at Cape Cod Hospital, an earlier statement from his office said.

The senator spent less than an hour in the Cape Cod facility, hospital spokesman David Reilly said.

An official with the Hyannis Fire Department said it received a 911 call from the Kennedy compound at 8:19 a.m. and transported a male patient to the hospital, arriving at 8:50 a.m.

The patient was subsequently transferred to the hospital's municipal airport, and a Boston Med Flight helicopter flew the man to Massachusetts General, Lt. Bill Rex said.

Family members reported that Kennedy was well enough later in the morning to call to say he would not be able to join them for lunch.

They said they were guardedly optimistic that he would make a full recovery.

Kennedy had surgery in October to clear his carotid artery in hopes of preventing a stroke. Colleagues said he had recovered quickly and was working energetically recently.

He suffers chronic back pain from injuries suffered in a plane crash in 1964.

Kennedy has represented Massachusetts in the Senate since 1962. He is one of only six senators in U.S. history to serve more than 40 years. He is known as a liberal champion of social issues such as health care, family leave, and the minimum wage.

Paulson Suggests Worst Is Past For Economy, but Housing Still Weak

WASHINGTON -- Despite continuing challenges in the housing market, the overall picture of U.S. financial markets has steadily improved over the past couple of months, Treasury Secretary Henry Paulson said Friday.

Mr. Paulson, in a rather upbeat speech that seemed to suggest the worst of the credit crisis is over, said market liquidity and investor confidence are improving in several sectors, such as corporate bonds, leverage loans and high-yield debt.

At the same time, capital and credit markets are stabilizing, leaving markets "considerably calmer now" than they were in March, said Mr. Paulson.

"In my judgment, we are closer to the end of the market turmoil than the beginning," he said in the text of a speech he plans to deliver in Washington. "Looking forward, I expect that financial markets will be driven less by the recent turmoil and more by broader economic conditions and, specifically, by the recovery of the housing sector."

Consumer Alert

The Federal Bureau of Investigation (FBI) is alerting consumers of a spam email asserting to be from the Internal Revenue Service (IRS) regarding economic stimulus checks.

The email contains information relative to direct deposit of the stimulus checks and also contains a fraudulent hyperlink to a form that requests personal bank account information. The bogus email claims that consumers' stimulus checks will be delayed if they fail to complete the form in a timely manner. Examples of the IRS spam emails are as follows: "Our records indicate that you are qualified to receive the 2008 Economic Stimulus Refund" and "To access Economic Stimulus refund, please click here."

In addition another recent attempt to extort personal information through a phishing email scam being distributed to college student email accounts (University of Illinois-Springfield). The email claims to be from the IRS with the subject line reading "IRS
- Economic Stimulus Refund Program".

These emails are not from the IRS. The IRS has a clear policy that they do not initiate communications with taxpayers via email. If you receive an unsolicited email message purporting to be from the IRS, please forward the original email to phishing@irs.gov and file a complaint with IC3 at www.ic3.gov

Additional information on scams is available at www.fbi.gov and www.lookstogoodtobetrue.com

FAA legislation removed from Senate floor

Legislation that would have overhauled the nation's aging air traffic control system has stalled in the Senate over non-aviation measures on Tuesday, after a procedural vote to limit debate on the bill failed. With the bill removed from the Senate floor for the time being, observers now expect lawmakers to extend the current laws authorizing the FAA into 2009. Sen. Jay Rockefeller, D-W.Va, was the lead author of the Senate bill and said consumers would have benefited from the provision to improve air traffic control.

Microsoft Nears Hostile Bid for Yahoo

Microsoft was leaning toward going hostile in its pursuit of Yahoo, with an announcement likely on Friday. Price will be a key factor if Microsoft takes a hostile approach as major Yahoo shareholders have signaled they want a price in the range of $35 to $37 a share. Separately, Yahoo could announce a deal to carry search ads from Google within a week.

Message from the Chairwoman of the Board

Sharpening the Focus

We began this board year with a motto of ‘Sharpen the focus.’ With that motto in mind, we have implemented several changes this year which increase our relevance and the value of your membership!

Ontario Chamber of Commerce Foundation

One of our first priorities was to bolster our chamber Foundation, and enhance its value to our community. We began this work by populating the board with high profile community leaders such as Gail Guge, of Wilkin Guge Marketing; Dr. William Aguilar, Vice president of Development, CSUSB; Fred Board, Publisher of the Inland Valley Daily Bulletin and Mark Tuttle, Owner of Warehouse Solutions. Together with board members from the Chamber (Bill Thurin, Benefits Resource; Ernie Riffenburgh, Gresham, Savage, Nolan and Tilden; myself and Mark Smiley, our President and CEO), the Foundation board set out to raise the profile of the Foundation. This will be accomplished in several ways:

The Foundation will have a presence at our Inaugural Gala, which is set for Thursday evening, June 19 at the Doubletree Hotel in Ontario. Thanks to the generosity of Fred Board, an informational brochure about the Foundation will be available at the Gala. Additionally, the Foundation scholarships will be presented at the Gala. The board felt this larger, more formal gathering was an appropriate and high profile venue for the scholarship presentations.

Thanks to Nativity Scene archives presented by Bill Thurin, the Foundation board realized that 2009 marks the 50th anniversary of the Nativity Scenes! To celebrate this occasion, the Foundation has formed a committee, being led by Dr. William Aguilar, that will meet in early May to begin the planning for a 50th anniversary celebration for the scenes. The proceeds from this event will benefit both the scenes and the Foundation. Foundation Board member Gail Guge suggested at one of our first meetings that we develop a 'signature event' for the Foundation, to raise the profile and awareness of the Foundation. The event marking the scenes’ 50^th anniversary will do just that!

Inaugural Gala

As you may note from the Gala information above, we have also sharpened the focus on the opportunity this event provides. This year’s Gala will not only include the inauguration of our 2008-09 Board and presentation of our scholarships, but other recognition as well. Our Small Business of the Year award will be presented, and major donors will be honored. We also hope to recognize again honorees from our Police Recognition Luncheon. This will be a fast-paced evening, full of appropriate acknowledgement of what is good and right about our wonderful community. We hope you will join us!

Upcoming Activities

It’s a busy time of year! Our next Legislative Breakfast is set for Friday, May 2 at the Ayers Suites Hotel on East Holt, the Police Recognition Luncheon will be held on Tuesday, May 6 at the Doubletree Hotel, our New Member Reception is scheduled for May 8 at the Sheraton, our Legislative Fly In takes to the air on Monday, May 19, our Membership Drive is gearing up for June and the ballots for the 2008-09 Ontario Chamber of Commerce Board members have been sent – be sure to submit your completed ballot!

I hope to see you at a chamber event soon!

U.S. Economy Grew 0.6% in First Quarter

The U.S. Commerce Department said the economy grew at an annual rate of 0.6% in the first three months of the year, in an initial estimate of gross domestic product for the quarter. The growth matches that of 2007's final period. Rising inventories helped prevent a contraction in the first quarter.

Federal Reserve policy makers are set to wind up a two-day meeting this afternoon. They are widely expected to cut interest rates one more time amid concerns that the economy is slipping into a recession.

United, US Airways consider merger, reports say

United Airlines has restarted merger talks with US Airways, according to media reports. In 2001, the Justice Department rejected a proposed merger of the two carriers. Observers noted that both airlines made cuts while they operated under bankruptcy protection, which could make the deal easier to execute. United CEO Glenn Tilton recently told employees in a recorded message that he continues to support consolidation. He also noted that the airline has "a solid foundation to manage through the complexities of this current economic environment."

Continental says it will not merge with United

Continental Airlines said Sunday it plans to remain an independent carrier. The airline had conducted formal merger talks with United Airlines, which has been interested in merging with Continental for years. Continental CEO Larry Kellner said that although the airline had decided against merging with United at this time, it is open to discussing joining global alliances with other carriers. Meanwhile, United CEO Glenn Tilton, looking ahead to the possibility of other business deals, said his company "will pursue all options to ensure a strong, sustainable future for our airline and will not shy away from the tough choices necessary to create value for our shareholders and benefit our employees and customers."

Continental Airlines Decided Not to Merge

Continental Airlines said its board met earlier today and unanimously supported management's recommendation to not merge with another airline at this time.

Continental said its board very carefully considered all the risks and benefits of a merger and determined that the risks outweighed potential rewards compared to its prospects on a standalone basis.

Hang Up -- Congress Won't Allow In-Flight Cell Phone Calls

Some business travelers will be disappointed, but others prefer the current rules' peace and quiet.

The battle over in-flight cell phone use is heating up, but Congress is digging in its heels. The European Union recently announced it will allow cell phone use by air travelers, putting pressure on the Federal Aviation Administration (FAA) and the Federal Communications Commission (FCC) to lift their ban on cell phones calls. But even if the agencies do decide that the devices don't interfere with the plane's equipment after all, members of Congress have introduced legislation to make sure cell phones stay banned, though more to protect other travelers than for safety concerns.

"Now is not the time to consider making the airline passenger experience any worse, and using cell phones in-flight would do just that," says Jerry Costello (D-IL), chairman of the House Transportation and Infrastructure Subcommittee on Aviation. The bill, H.R. 5788, is called "Halting Airplane Noise to Give Us Peace Act" -- or HANG UP for short.

Foreign carriers, including British Midland Airways, Air France, Australia's Qantas Airways and the Irish airline Ryanair, are holding trials and making plans to allow cell phone service in the air. On March 20, Emirates became the first carrier in the world to allow passengers to use their cell phones during a flight.

Proponents say U.S. carriers will be at a competitive disadvantage if they do not offer the service. It would also increase productivity, allowing passengers to get work done while traveling, says Paul Domorski, CEO of EMS Technologies, which supplies equipment for the service to the airlines. The airlines, for their part, say that any decision should be made by the individual airline based on passenger needs and preferences, not by Congress. Providing the service could result in a new revenue source for the airlines.

Opponents contend the vast majority of business travelers recoil at the idea. Unlike on Amtrak, an airline passenger does not have the ability to change seats or go to a different car. Text messaging and Internet use is favored by most business travelers, and the House bill would not ban those services. Some U.S. carriers such as American, Southwest, Alaska, Virgin America and JetBlue are testing the use of Wi-Fi to connect laptops and other portable devices to the Internet.

United Airlines Nearing Decision on Potential Merger Partner

Less than two weeks after Delta Air Lines and Northwest Airlines unveiled their plan to merge, United Airlines parent UAL is nearing a decision about its potential merger partner. The deliberations come as talks are heating up among carriers worried about being marginalized if they don't combine in a deteriorating industry climate.

UAL, which already has had detailed merger talks for at least a month with US Airways Group, recently embarked on parallel discussions with Continental Airlines, according to people familiar with those situations. United wants to come to a decision about its preferred outcome in the next couple of weeks and a deal announcement by mid-May could be in the offing, said one person familiar with the matter.

Ford posts surprise 1Q profit, still expects full-year loss

DEARBORN, Mich. - Despite a surprise profit of $100 million for the first quarter, Ford Motor Co. said Thursday that it still expects to lose money this year as the U.S. auto market deteriorates.

But the company's stock surged nearly 12 percent as CEO Alan Mulally reiterated his promise that restructuring will return Ford to black ink for 2009.

The profit, Ford's first since the second quarter of last year, came even during a time when concerns about the U.S. economy kept many car buyers away from showrooms. Ford sales were off about 9 percent for the quarter, and the trend away from trucks and sport utility vehicles accelerated, hurting its bottom line.

Existing-Home Sales Resumed Decline in March

Existing-home sales fell during March after making a surprise climb in February. Home resales fell to a 4.93 million annual rate, a 2.0% decrease from February's unrevised 5.03 million annual pace, the National Association of Realtors said. Sales were down 19% from the year-earlier month. The median home price was $200,700 in March, up from $195,600 in February but down from $217,400 in March 2007.

Southwest Cuts Back Growth

Southwest is again slowing its planned growth by deferring at least half its aircraft deliveries for next year, but also is reconsidering the planned retirement of as many as 16 aircraft this year to take advantage of potential opportunities created by the troubles, capacity cutbacks and potential consolidation of other carriers, the airline revealed yesterday.

CEO Gary Kelly also disclosed during the airline’s first quarter earnings call that the carrier is considering multiple domestic and international code-share partnerships — perhaps as many as six.

Kelly made the comments as the airline reported another profitable quarter, this time $34 million on a 15.1% increase in revenue to $2.5 billion, even as other carriers are slipping back into the red. But that’s down from its $93 million profit in the first quarter of 2007, and Kelly said rising fuel prices are taking a toll on Southwest, too, even though it’s far better off than competitors because it has hedged 70% of its fuel this year at $51 per barrel.

Southwest said it has decided to reduce its fleet growth by taking delivery on no more than 14 737-700 aircraft in 2009, which would be half its previous plan. Southwest deferred those 14 deliveries to 2015, and also deferred 12 deliveries scheduled for 2010 to 2013 to 2015. It still plans to accept 29 new 737s this year.

The changes cut Southwest’s planned capacity growth next year to 2% to 3% if it decides not to retire any aircraft next year, and Kelly said the airline remains “open” to reducing it further. At one time Southwest planned 8% growth in 2009, but its most recent guidance had been 4% to 5%.

Southwest will be eliminating 20 more routes in August and recently reduced its capacity growth plans for this year to 4% to 5%, but that will fall to 3% to 4% if it retires 22 of its aircraft as originally planned. Kelly, however, said Southwest might decide to keep as many as 16 of them. Kelly indicated the number remaining in operation is more likely to be in the single digits, but said Southwest wants the flexibility to respond to market opportunities.

Regarding the code-sharing, Kelly said Southwest is considering and discussing multiple partnerships for domestic and international service. Kelly said it is possible Southwest ultimately could end up with separate code-share partners for service to Hawaii, Canada, Mexico, the Caribbean, Europe and Asia.

The international code share, as Southwest as previously stated, would not begin until 2009. But Kelly said he hopes to have a replacement for ATA code-share service to Hawaii and the New York area within months. ATA flew to LaGuardia.

“How many airlines we will ultimately code share with we don’t really know yet,” he said. He said the airline would only start with a few, but “by the time we get to the end of 2009, it would be my goal that we have all of these bases covered.”

Preston Is Picked to Run HUD

WASHINGTON -- President Bush nominated Steven Preston as secretary of the Department of Housing and Urban Development, a move likely to set off a skirmish between the White House and Congress as both grapple with responses to rising foreclosures and souring mortgages.

Mr. Preston, who joined the Bush administration as head of the Small Business Administration in 2006, has won high marks from Republicans and some Democrats as an effective administrator. But he has little housing experience, an issue Democrats seized upon Friday.

Before entering government, Mr. Preston, 47 years old, was chief financial officer at ServiceMaster Co., which owns home-service companies such as Terminix and Merry Maids. Prior to that, he was a senior vice president and treasurer of First Data Corp. and an investment banker at Lehman Brothers Holdings Inc.

"Steve Preston is an experienced manager who knows what to do," Mr. Bush said. "He knows how to tackle a problem, devise a solution and get results. That's exactly the kind of leadership I was looking for."

Mr. Preston must be confirmed by Senate Democrats before he can take over at HUD, an agency at the center of the Bush administration's response to the housing turmoil.

If confirmed, Mr. Preston would leave behind an agency that spent $1.2 billion in fiscal 2007, and take over one of the government's larger bureaucracies, which spent roughly 40 times as much that year. Roy A. Bernardi, the second-in-command at HUD, will serve as acting secretary until Mr. Preston is confirmed. He succeeds Alphonso Jackson, whose rocky tenure at HUD ended Friday.

California unemployment rate hits 6.2% in March

SACRAMENTO -- California's unemployment rate hit 6.2% in March, the highest level in almost four years, spurred by a continuing downturn in construction and financial activities.

The Employment Development Department reported Friday that 1.13 million people were out of work last month, marking the state's weakest economic performance since July 2004, when the jobless rate also stood at 6.2%.

Unemployment is up 1.2 percentage points from a year earlier, with 229,000 more Californians looking for work than in March 2007.

Since then, the job outlook has darkened as a largely housing-related slowdown has cut into the net worth of consumers, forcing them to cut back spending, economists said.

Gas prices push closer to $3.50 a gallon, oil hits $117

NEW YORK - Retail gas prices set new records Friday on their seemingly relentless march toward $3.50 a gallon, and diesel prices pushed further above $4 a gallon. Crude futures, meanwhile, surged to a new record of $117 a barrel.

The price of crude oil was pushed higher after a militant group in Nigeria said it had sabotaged a major oil pipeline operated by a Royal Dutch Shell PLC joint venture and promised further attacks on the country's petroleum industry.

A spokeswoman for Shell confirmed that the pipeline was leaking, and said the damage appeared to have been caused by explosives. Nigeria is a major supplier of oil to the U.S.

The escalation in crude prices threatened to further boost gasoline costs.

Airline executives will consider mergers

US Airways CEO Doug Parker said mergers would be good for airline employees, customers, and communities served by carriers. He did not refute reports that the airline has discussed a merger with United Airlines, and he has repeatedly said that US Airways will remain active in the merger front. Executives at Continental Airlines and United Airlines also said they will consider merging with other airlines. Meanwhile, American Airlines CEO Gerard Arpey said his carrier will remain competitive even if it does not merge with another airline.

Delta, Northwest Boards Approve Merger

Delta Air Lines and Northwest Airlines received approval from their boards to merge in a deal that would create the world's largest airline by traffic -- if the agreement can pass regulatory muster and overcome potentially serious employee resistance.

The merger would be all stock transaction in which Northwest shareholder will receive 1.25 shares in the new company for each Northwest share they own. This is a 17% premium to Northwest holders based on Monday's closing share prices.

If the deal goes ahead, the combined airline will keep the Delta name, be based at Delta's Atlanta headquarters and be run by Delta CEO Richard Anderson.

In Surprise, Retail Sales Edged Higher in March

U.S. retail sales took a surprising turn upward during March, a promising sign for the economy given the punishment consumers have absorbed. Retail sales increased by 0.2%, the Commerce Department said.

Retail sales increased by 0.2%, the Commerce Department said Monday. Sales went down a revised 0.4% in February. Sales that month were originally seen 0.6% lower.

Excluding sales of gasoline stations, which were helped by high energy prices, retail sales didn't budge in March.

Economists surveyed by Dow Jones Newswires estimated a 0.1% decrease in overall March retail sales. The actual, 0.2% increase could be seen as bright news, considering many analysts argue the U.S. has gone into recession, which is defined as two straight quarters of economic decline. The sales report is a key indicator of U.S. consumer spending. Consumer spending makes up about 70% of gross domestic product, the broad measure of economic activity in the U.S. The Commerce Department next week releases its first estimate of first-quarter GDP, which will confirm whether the economy fell and began what could turn into recession.

GDP rose in the fourth quarter of 2007, but the crawling 0.6% increase was far below the galloping 4.9% pace in the third quarter. The economy is fighting higher food prices, surging energy costs, job losses, and a credit crunch. Financial market turmoil has sent stock prices down and the housing slump lowered the values of homes.

The retail sector data Monday showed U.S. sales of automobiles and parts rose by 0.2% in March. February sales had fallen 1.2%. Sales of all other retailers excluding auto and parts dealers increased in March by 0.1%; economists expected a 0.1% increase. Ex-auto sales in February had gone 0.1% lower, revised from a previously estimated 0.2% decrease.

March gasoline station sales increased by 1.1%. Gas sales fell 0.5% in February. Stripping away sales at gas stations, demand at all other retailers was flat in March.

Excluding gas and auto sectors, demand at other retailers last month was flat. Sales decreased 1.6% at building material and garden supplies dealers; 0.3% at furniture store sales; 0.4% at electronics and appliance stores; 0.5% at clothing stores; 0.1% at health and personal care stores; and 0.6% at general merchandise stores. Sales increased 0.4% at food and beverage stores; 0.3% at eating and drinking places; 2.1% at mail order and Internet retailers; and 1.4% at sporting goods, hobby and book stores.

Business Inventories Rise

In a separate reading Monday, U.S. business inventories grew again in February, while demand plunged -- a sign companies are getting stuck with unsold goods on their shelves as the economy sours.

Inventories increased by 0.6% to a seasonally adjusted $1.468 trillion, the Commerce Department said Monday. Inventories in January rose a revised 0.9%; originally, January stocks were seen up 0.8%.

Wall Street was looking for stockpiles to move 0.6% higher during February.

Business sales decreased by 1.1% to $1.143 trillion in February. Sales rose 1.3% in January; originally, January sales were seen 1.5% higher. The 1.1% drop was the largest since a matching decline in January 2007.

The inventory-to-sales ratio increased to 1.28 in February from 1.26 in January, Commerce said. The gauge indicates how well firms are matching supply with demand. It measures how long in months a firm could sell all current inventory. The 1.28 ratio was the largest since 1.30 in February 2007.

Year over year, inventories grew by 5.2% since February 2007; sales climbed 6.7%.

February manufacturing sector stockpiles of goods increased 0.5% after rising 1.3% in January. U.S. wholesalers' inventories rose 1.1% after increasing 1.3% in January.

Retailers' stocks of goods increased by 0.2% after rising 0.3% in January. Auto dealer inventories climbed 0.4% after increasing in January at the same rate. Excluding the auto component, other retail stocks inched 0.1% higher in February after rising 0.2% in January. February inventories rose by 0.2% at food and beverage stores; 0.4% at building materials, garden equipment and supplies stores; and 0.2% at general merchandise stores. Inventories fell 0.3% at furniture outlets and 0.4% at clothing stores.

Blockbuster Targets Circuit City

Blockbuster said it offered in February to acquire Circuit City for at least $6 a share in cash, in a deal that would create an $18 billion company, but that the electronics retailer has failed to give the "due diligence necessary to allow Blockbuster to make a definitive proposal."

The entertainment firm said it is now making the proposal public to give shareholders "the opportunity to participate in determining the destiny of the company."

Delta, Northwest return to merger talks, reports say

Northwest Airlines and Delta Air Lines have returned to merger negotiations, according to media reports. Executives from the two carriers will meet this week, say news reports.

Skybus stops operating, citing slower economy, high fuel costs

Discounter Skybus Airlines shut down over the weekend, and a spokesman said the carrier plans to file for Chapter 11 bankruptcy protection on Monday. "Skybus struggled to overcome the combination of rising jet-fuel costs and a slowing economic environment," the company said in a statement. "These two issues proved insurmountable for a new carrier."

WaMu to Get $5 Billion Infusion

Private-equity firm TPG and other investors are near a deal to invest $5 billion in WaMu in return for stock. That could allow the U.S.'s largest thrift to meet all its capital requirements amid deep losses from the mortgage crisis, but would dilute current holders' stakes.

Local gas prices reach record highs

Gasoline prices jumped to record levels this week as supply problems at refineries ended a couple of weeks of small drops in prices, according to the Automobile Club of Southern California.

The average price of a gallon of regular gasoline in San Bernardino and Riverside counties reached $3.625 this week, up 3.6 cents from the previous Friday and the highest ever.

In Los Angeles County, the average price was even higher, at $3.639, also 3.6 cents higher than a week ago.

Orange County prices rose 4.5 cents last week to a record of $3.593 per gallon.

Jobs Slashed, Pointing to Recession

WASHINGTON - Employers buffeted by talk of recession slashed 80,000 jobs in March, the most in five years and the third straight month of losses.

At the same time, the national unemployment rate rose from 4.8 percent to 5.1 percent, the clearest signal yet that the economy might already be shrinking.

The new snapshot of the job market, released by the Labor Department Friday, underscored the damage that a trio of crises _in the housing, credit and financial sectors -- has inflicted on companies, jobseekers and the economy as a whole.

For the first time, Federal Reserve Chairman Ben Bernanke acknowledged Wednesday that the country could be heading toward a recession, saying federal policymakers are "fighting against the wind" in combating it. Many other economists and the public believe the recession already has arrived.

ATA Airlines stops operating, files for bankruptcy protection

After 35 years in operation, ATA Airlines discontinued all flights and filed for bankruptcy Thursday, stranding thousands of travelers in the United States and Mexico, including some at Chicago's Midway Airport.

Once the nation's 10th-largest air carrier, Indianapolis-based ATA entered bankruptcy for the second time in just over three years. The company had more than 2,200 employees, and "virtually all" were told that their jobs were gone, company spokesman Michael Freitag said.

Bernanke to Tell Lawmakers Economic Contraction Possible in First Half

Fed Chairman Bernanke plans to tell a congressional committee that the U.S. economy is unlikely to grow "much, if at, all, over the first half of the 2008 and could even contract slightly," but he anticipates strengthening in second half. He cautions, though, that uncertainty is "quite high" and "risks remain to the downside."

Region Getting Huge Solar Panel Project

Governor Schwarzenegger and officials from Southern California Edison will announce plans for a five-year, $875 million solar rooftop project, an undertaking that's being called the largest rooftop solar installation project ever proposed by an utility company. Photovoltaic cells will be placed on 65 million square feet of commercial building roofs in Southern California (because their populations are growing so quickly, the Inland Empire/San Bernardino/Riverside counties are getting the solar power first), and according to the Los Angeles Times, the "cells will generate as much as 250 megawatts of electricity -- enough to power about 162,500 average homes, based on the utility's estimate that one megawatt would serve about 650 average homes."

Motorola to Separate Mobile-Devices and Broadband Businesses

Motorola announced it is separating its mobile-devices and broadband and mobility-solutions businesses, creating two independent, publicly traded companies. The company expects the creation of two stand-alone businesses to take the form of a tax-free distribution to Motorola shareholders. Shareholders would subsequently own shares of two publicly traded companies.

The move sent Motorola shares up 6.4% in premarket trading to $10.35 and meets a request long sought by activist investor Carl Icahn, who is seeking representation on the company's board and sued the company earlier this week to get documents related to the mobile business.

Passenger rights law rejected by Appeals Court

A federal appeals court today threw out a New York state law guaranteeing airline travelers fresh air, water and working toilets when flights have been delayed on the ground for more than three hours. "The court's decision vindicates the position of the Air Transport Association and the airlines -- that airline services are regulated by the federal government and that a patchwork of laws by states and localities would be impractical and harmful to consumer interests," the ATA said in a statement.

J.P. Morgan Chase Unveils Revised Bear Stearns Deal Terms

J.P. Morgan Chase announced an amended merger agreement for Bear Stearns, boosting the value of the deal to $10 a share from the initial valuation of $2 a share. Also, the Federal Reserve Bank of New York's $30 billion special financing was amended so that J.P. Morgan Chase will bear the first $1 billion of any losses associated with the Bear Stearns assets being financed and the Fed will fund the remaining $29 billion. The revised deal, which was negotiated over the weekend, is aimed at mollifying Bear's investors who have been furious with the $2-a-share agreement struck last weekend as the storied investment bank was on the brink of collapse.

Existing-Home Sales Move Higher Amid Sharp Price Drop

Existing-home sales climbed for the first time in seven months during February as buyers appeared to take advantage of sharply falling prices. Home resales rose to a 5.03 million annual rate, a 2.9% increase from January's unrevised 4.89 million annual pace, the National Association of Realtors said. Year over year, sales were down 24% from February 2007. The median home price was $195,900 in February, down 8.2% from $213,500 in February 2007. The 8.2% drop was the largest on record, the NAR said.

Delta announces plans to cope with increased fuel prices

Delta Air Lines on Tuesday announced a plan to cut domestic flights by 5% and eliminate 2,000 jobs. The airline said the plan is part of an effort to offset the soaring cost of jet fuel, and it hopes to achieve the job cuts through voluntary buyouts. Delta also said it will continue with plans to increase international flying, noting that higher fares cover the higher fuel costs.

Pilots at Delta, Northwest say they cannot agree on seniority

Pilots at Delta Air Lines and Northwest Airlines could not reach an agreement on seniority issues for a potential merger despite weeks of intense negotiations, according to media reports. Executives at Delta have said that the airline will not move forward unless the seniority of its pilots is protected, but some observers say the two companies could still go ahead with merger plans.

Fed Cuts Funds Rate Three-Quarter Point to 2.25%

The Federal Open Market Committee voted 8-2 to cut the fed funds rate from 3% to 2.25%, its lowest level since December 2004, and signaled more reductions are likely, unloading heavy artillery in its effort to keep the credit crunch from triggering a prolonged recession. The rate cut, though extremely aggressive by any historical measure, was likely to disappoint many on Wall Street who thought a full percentage point was needed.

The Fed's statement said: "Recent information indicates that the outlook for economic activity has weakened further. Financial markets remain under considerable stress, and the tightening of the credit conditions and the deepening of the housing contraction are likely to weigh on economic growth over the next few quarters."

Boeing to protest lost Air Force tanker award

Boeing Co. officials announced Monday they would protest a U.S. Air Force decision to award a $35 billion aerial refueling contract to a joint venture of Northrop Grumman Corp. and the European parent of Airbus SAS.

The protest, to be filed with the U.S. Government Accountability Office, is the first formal challenge of a defense contracting decision lodged by Chicago-based Boeing in at least 30 years.

"Our team has taken a very close look at the tanker decision and found serious flaws in the process that we believe warrant appeal," said Jim McNerney, Boeing chairman, president and chief executive officer. "This is an extraordinary step rarely taken by our company, and one we take very seriously."

Chicago-based Boeing was considered the heavy favorite to win the contract to replace 179 Eisenhower-era tankers for the U.S. Air Force but it was bested by a team led by Airbus parent European Aeronautic Defense and Space Co. and Northrop Grumman Corp.

Both proposals involved retooling jetliners late in their commercial life cycles, either the Boeing 767 or Airbus A330, into rugged freighters built to haul fuel and cargo around the globe for the military.

The winner likely will wind up replacing all 530 tankers in the Air Force's fleet, a deal that could top $125 billion when parts and maintenance are included, analysts have estimated.

U.S. Retailers Report Mixed Sales Results; Wal-Mart Tops Forecast

March 6, 2008

U.S. retailers reported less-than-stellar results for February as a slowing economy weighed on consumers. However, for several companies sales exceeded expectations, easing some of the gloom in the sector.

Wal-Mart posted a better-than-expected 2.6% increase in sales at its U.S. stores open at least a year, excluding fuel sales. Leading the way was "continued strength in the grocery, health and wellness and entertainment" segments, Wal-Mart said. The company forecast March sales at flat to up 2%.

Target, which has reported weak same-store sales of late, reported a 0.5% increase for February, slightly better than analysts expected. Limited Brands posted a 9% decline and AnnTaylor's same-store sales fell 1.7%, but both were expected to suffer deeper declines. Pacific Sunwear said its sales rose 6%, beating expectations. Wet Seal's 8.2% drop was worse than analysts had expected.

QUAKES ANNOUCE FLAGSHIP RADIO STATION FOR 2008

Rancho Cucamonga, CA- The Rancho Cucamonga Quakes have announced that their Flagship Radio station will be KSPA 1510am for the upcoming 2008 season

KSPA 1510am will air all 140 Quakes regular season games and will have “on-air” ticket giveaways and will keep Quakes fans abreast of upcoming games at the Epicenter. The Quakes will also be simulcast on the internet at www.rcquakes.com, and www.milb.com.

KSPA has solid listeners in the Inland Empire, but the signal reaches deep into Orange County as well. They have been the home to the Los Angeles Angels of Anaheim, and currently have USC Trojans and San Diego Chargers football broadcasts in the fall.

“We are very excited to be back with the local station,” said Executive Vice President and General Manager of the Quakes Gerard McKearney. “We look forward to a tremendous partnership with KSPA 1510am carrying Quakes games this season for our fans to enjoy.”

“I’m excited that Rancho Cucamonga’s home town station will be broadcasting the home town team,” Regional Sales Manager Joe Lyons said.

Jeff Levering is in his second season in Rancho Cucamonga and will be behind the microphone broadcasting all 140 Quakes games. In addition to KSPA 1510-AM, the Quakes are also simulcast on the internet at www.rcquakes.com.

The first broadcast of the season will be April 1^st against Azusa Pacific University at the Epicenter. First pitch is slated for 6:05 for the exhibition game. Tickets in the club section are being sold for $5.00. The game is complimentary for season ticket holders.

The Rancho Cucamonga Quakes are the Advanced-A California League affiliate of the Los Angeles Angels of Anaheim and open their 2008 home schedule on Monday, April 7th at the Epicenter against the High Desert Mavericks. For information about ticket packages and group information, please call the Quakes at (909) 481-5000.

-Shake, Rattle, and Roll-

Pilot negotiations could stall Delta-Northwest deal, reports say

Negotiations between pilot groups at Delta Air Lines and Northwest Airlines are at an impasse and may put a potential merger at risk, according to media reports. The boards of the two airlines are expected to meet today, and they intended to vote on a merger if the pilots had reached an agreement, the reports say. The pilots are negotiating how to blend the airlines' seniority lists.

Fed Minutes Indicate Downside Economic Risks Persist Even After January Rate Cuts

NEWS ALERT
from The Wall Street Journal


Feb. 20, 2008

Federal Reserve policy makers said downside risks to the economy remained even in the wake of recent interest-rate cuts, according to minutes of their Jan. 29-30 meeting. In their quarterly economic summary, central bank officials lowered the forecast for gross domestic product this year to 1.3% from 2%. In addition, the central tendency for core inflation was revised up, with officials now expecting core inflation in 2008 to range between 2% and 2.2%. The officials said inflation could tick higher if energy and commodity prices were to weigh on consumers more heavily than expected. The severity of the housing downturn, tightening in the credit markets and high oil prices were factors leading to the cloudier outlook, the officials said.

Continental in talks with American, United, reports say

Continental Airlines is in merger negotiations with American Airlines and United Airlines, according to media reports. The talks with American are exploratory and come as Delta Air Lines and Northwest Airlines get closer to reaching a merger agreement, reports say. Carriers hope to reach merger agreements soon, before the Bush administration leaves the White House.

Motorola sues Research in Motion

Motorola Inc. sued Research In Motion Ltd. claiming the Canadian company's BlackBerry wireless e-mail device violates seven U.S. patents covering mobile-communications technology.

Motorola, the biggest U.S. maker of mobile phones, said Research In Motion is using the inventions without permission and asked a federal judge in Marshall, Texas, to order a stop. Motorola also is seeking cash compensation for past infringement of the inventions, according to the complaint filed Feb. 16.

Governor Arnold Schwarzenegger Signs Special Session Budget Bills

2/16/2008 - Governor Schwarzenegger today congratulated and thanked legislators for making reductions necessary in the mid-year cuts. He then signed the special session budget bills, which create over a billion dollars in reductions.

United Airlines in advanced negotiations with Continental Airlines for merger

United Airlines is in advanced negotiations with Continental Airlines and is poised to quickly seal the deal if Delta and Northwest Airlines merge, says a person close to the airlines.

However, Chicago-based United hasn't ruled out pursuing Delta if the Atlanta-based carrier is unable to overcome labor differences with Northwest, sources say.

Doing so would give United greater leverage in its negotiations with both airlines, as well as a fall-back in case talks with Continental hit an unforeseen snag, say people familiar with the situation.

WSJ: Yahoo, News Corp. talking about combination

News Corp. and Yahoo Inc. are in discussions about combining MySpace and other News Corp.-owned online properties with Yahoo, according to people familiar with the matter.

The discussions are aimed at helping Yahoo fend off Microsoft Corp's (MSFT) $44.6 billion unsolicited takeover offer. Under the deal being discussed, News Corp. would get a stake in Yahoo which could be more than 20 percent.

The deal under discussion, which would also include a contribution of cash from News Corp. and a private-equity firm, is a variation of one that has been considered by the two companies several times over the past 18 months.

SPOTLIGHT ON ONTARIO, CALIFORNIA

AIRING ON KVMD TV CHANNEL 23 AND 31 FOR SATELITE SUBSCRIBERS MONDAY FEBRUARY 11^th – WEDNESDAY FEBRUARY 13^th AND FRIDAY FEBRUARY 15^th AT 7:30PM PST AND SATURDAY FEBRUARY 16^th AND SUNDAY FEBRUARY 17^th AT 6AM PST

February 11^th, 2008 – KVMD and the producers of Southern California Life are proud to announce the much-anticipated airing of our “Spotlight” series on Ontario, California.

Southern California Life is the Southland’s newest newsmagazine program airing on KVMD. Broadcast in San Bernardino, Los Angeles, Riverside, Ventura, and Orange Counties, the focus of Southern California Life is bringing positive news about Southland to the people of Southern California.

Every week on Southern California Life, we showcase a different city in the Southland. These “Spotlights” feature the most outstanding features of a city to promote the area and encourage people to venture outside of their backyards. In our Ontario spotlight, we explore the city’s constantly improving world-class facilities, including its new state of the art arena, one of the largest shopping centers in America and the fastest growing airport in Southern California.

Southern California Life airs Monday through Friday at 7:30pm and again on Saturday and Sunday at 6am. We hope you will tune in as we shine the spotlight on this wonderful town. To find KVMD in your area, check your local listings.

Chinese nationals arrested on espionage charges

NEWS ALERT
from The Wall Street Journal

Feb. 11, 2008
A Defense Department analyst and two Chinese nationals were arrested on espionage charges related to the alleged sale of military secrets to the Chinese government. Much of the information pertained to U.S. military sales to Taiwan, the government said. Separately, a former Boeing engineer was arrested on allegations he stole trade secrets related to several aerospace programs, including the Space Shuttle, and passed them to China.

Yahoo Inc.'s board plans to reject Microsoft Corp.'s unsolicited $44.6 billion offer

NEWS ALERT
from The Wall Street Journal

Feb. 9, 2008

Yahoo Inc.'s board plans to reject Microsoft Corp.'s unsolicited $44.6 billion offer to acquire the Web giant, a person familiar with the situation says.

After a series of meetings over the past week, Yahoo's board determined that the $31 per share offer "massively undervalues" Yahoo, the person said. It also doesn't account for the risks Yahoo would be taking by entering into an agreement that might be overturned by regulators. The board plans to send a letter to Microsoft on Monday, spelling out its position.

Microsoft Makes $44.6 Billion Bid for Yahoo

NEWS ALERT
from The Wall Street Journal

Feb. 1, 2008

Microsoft said it has made a cash-and-stock offer to buy Yahoo for $31 a share, in a deal valuing the company at $44.6 billion.

"We have great respect for Yahoo!, and together we can offer an increasingly exciting set of solutions for consumers, publishers and advertisers while becoming better positioned to compete in the online services market," said Microsoft Chief Executive Steve Ballmer. "We believe our combination will deliver superior value to our respective shareholders and better choice and innovation to our customers and industry partners."

STEVE HARRINGTON NAMED IEEP’S VICE PRESIDENT

INLAND EMPIRE, CA (January 30, 2008) – Steve Harrington has been named Vice President of Economic and Workforce Development for the Inland Empire Economic Partnership. Harrington comes to IEEP from the County of San Bernardino’s Economic Development Agency where he served as Business Development Manager.

Prior to entering the economic development profession, Harrington spent 28 years in warehousing, distribution and transportation including 11 years with Perrigo Co. as its West Coast Distribution Manager, and nearly 18 years with Vons Grocery Company.

Harrington is Chairman and Past President of the Distribution Management Association of Southern CA. Harrington was a “Spirit of the Entrepreneur” award finalist in recognition of his work with the DMA.

Harrington presently serves on advisory boards at the Leonard Transportation Center at Cal State University, San Bernardino, Valley College, Riverside Community College, the Ontario Chamber of Commerce and A Foundation for Kids. He is also a board member of California Manufacturing Technology Consulting (CMTC).

Harrington graduated from Cal State Fullerton with a degree in Business Administration and earned a Certificate in Logistics Management from the College of Extended Learning at CSUSB in 2004. He graduated from the “Leadership Connection” program at Chaffey College in 2005.

Mary Jane Olhasso named woman of the year

You could say Mary Jane Olhasso has done it all, seen it all.

But holding the reins of economic development in Ontario is a major undertaking of its own, and Olhasso says she's in it for the long haul.

As Ontario's status among Southern California cities keeps growing by leaps and bounds, the city's 10-year economic development director wants to grow with it.

The 47-year-old professional's resume boasts an impressive track record in the corporate world, on top of recently being named "Woman of the Year" by Real Estate Southern California magazine.

Impressive, but Ontario's grand scheme holds even bigger challenges. The city's insatiable appetite for attracting new businesses is in its prime, and local leaders are pressing Olhasso to take the Ontario to new levels.

"Most cities believe they're in the business of providing services," Olhasso said. "Ontario believes we're in the business of growing assets just like a corporation. That's why I'm in it for the long haul."

She's got a jumpstart on the uphill battle but still has a long row to hoe. Ontario and L.A./Ontario International Airport have catapulted into the world of international trade, becoming a magnet for attracting warehouse distribution centers and professional office buildings. With that comes a hefty responsibility to coordinate balanced commercial and residential growth.

"A lot of people compare us to Orange County 20 years ago," Olhasso said.

"There's far more potential here when it comes to being an urban center than when it comes to Orange County. (Our airport) will be three times John Wayne Airport and half the size of LAX ... within the next 10 to 20 years."

While it's Olhasso's job to be optimistic about the city's future, she's seen the other side of the fence. Her early career put her in touch with the Orange County real estate industry before eventually becoming finance director for Dana Point.

Beyond all that, the fact that Ontario lies in the state of California is her biggest challenge, she said.

"Brokers will just sit down and tell me very honestly, `Our clients don't even let us look in California because the taxes are too high, and the cost of living is too high,' " Olhasso said. "Given those facts, how can we countersell that? Corporate America knows we're here. Now it's just overcoming the whole tax environment relative to California."

Almost a quarter of her time at work is spent hashing out details for the New Model Colony - 8,200 acres of dairyland in south Ontario that Olhasso dubs "a second city." At buildout, the colony is projected to have 31,000 new homes and several businesses.

"She's worth her weight in gold," said Mayor Paul Leon.

He said Olhasso faces promoting Ontario during the current economic downturn nationwide. "She has to see the value in businesses locating to Ontario, and she already does that significantly," Leon said.

Perhaps Olhasso says it best.

"I want people to see... what we need to plan for so we're not overshooting the market," she said. "Most cities will over-zone land for retail and office space. Instead of saying `We want this,' let's do our homework and prove our case. It's a business approach."

matthew.wrye@sbsun.com

(909) 386-3871

---

Mary Jane Olhasso

Occupation: Economic development director of Ontario

Age: 47

Education: Bachelor of science in business with emphasis in accounting, Cal State Fullerton; masters in business administration, University of Redlands

Resume: Certified public accountant for Deloitte Haskins and Sells; finance director for Dana Point; chief financial officer, assistant city manager, and redevelopment director for Temecula

Favorite music: Classical, country

Favorite book: Economic technical periodicals

Mentor: Gregory Devereaux, city manager of Ontario