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!