September 20, 2024

Archives for October 2011

Boulder Seeks to Take Power From the Power Company

Here, that debate is focused on electricity, specifically whether this city should, in Tuesday’s election, sever its relationship with a corporate utility and move toward a home-ruled, municipally owned one that would be environmentally greener and locally accountable.

Kristin Johnson, a 57-year-old lawyer, summed up her planned vote to oust the company, Xcel Energy, in seven succinct words.

“They don’t have our interest at heart,” she said.

Xcel, a Minneapolis-based company that supplies electricity across eight states, including most of Colorado, is fighting back hard, arguing that a divorce would be devastatingly expensive for Boulder residents through higher electricity rates and start-up costs. And if talk of home-rule is really about having more renewable, carbon-reduced energy generation, well then, the company has said in advertisements and letters to residents, a big corporation with deep pockets can help get there cheaper and faster than any city, however well intentioned.

“I can’t find the numbers for how Boulder is going to do it better,” said Bob Bellemare, an Xcel consultant.

Proponents of ballot issues 2C and 2B, which includes a $1.9 million tax increase in the first year to pay for planning and analysis, say that the utility industry desperately fears a public awakening, and that a John Brown-like raid on a monopoly in one place could galvanize electricity consumers all across the nation to push for change.

Leaders of the effort concede that huge challenges await if the city goes forward, and that Xcel is not the worst provider to have. Partly prodded by a Colorado law requiring 30 percent renewable energy by 2020 — one of the most aggressive standards in the nation — the company has become a big producer of wind electricity. It has also spent more than $40 million here in Boulder building a pilot project called Smart Grid, with sophisticated metering that can help customers reduce electricity use.

Not enough, some say.

“Boulder can do better,” said Shaun McGrath, a former mayor and a leader of the ballot drive.

“We were making some headway with our carbon reductions,” Mr. McGrath said, referring to the relationship with Xcel, which is still, like most utilities, dependent on coal for much of its output. “But really what we kept bumping into was this ceiling of where our electricity was coming from.”

The backdrop, both sides say, is the city itself, a mountain-fringed college town about 45 minutes from Denver that is consistently one of the most liberal and idealistic corners of Colorado politics. President Obama carried Boulder County with 72 percent of the vote in 2008.

In the electricity fight, left-leaning politics have been aligned with hard science, supporters say, creating a unique platform for thinking creatively about electricity and democracy.

Climate and weather research, in particular, has a huge presence in the city, at federal institutions like the National Center for Atmospheric Research and the National Oceanic and Atmospheric Administration along with the tech-heavy University of Colorado that sprawls through the center of town. More than two-thirds of the population over age 25 has a bachelor’s degree or higher, according to census figures — compared with just over 36 percent for Colorado as a whole.

A passionate outdoor youth and fitness culture — a weekend run or ride on a Boulder bike path can feel like a border crossing to Spandex nation — completes the demographic circle from which the anti-Xcel forces have drawn support. A youth-centered group called New Era Colorado has been phone-banking for the electricity measures for weeks.

“It’s probably going to get passed because it is such a Boulder thing,” said Jane Imber, 55.

Ms. Imber, a freelance copy writer, said that she planned to vote no, even though she believes strongly in clean energy. “I think we have a better chance of changing Xcel from the inside than the outside,” she said.

Some supporters of the separation, though, say that local history — notably a long-simmering conflict over a coal-fired power plant in the city, called Valmont, which Xcel plans to retire by 2017 — has poisoned the well. Valmont has been the site of numerous protests over the years.

“There’s a special distrust of Xcel,” said Kate Clark, 27, a graduate student in environmental studies at the University of Colorado and a ferocious opponent of coal. Ms. Clark, who said she had also visited the Occupy Denver protest site several times in recent weeks, has volunteered at New Era Colorado.

The two ballot measures would not immediately initiate a break with Xcel or the creation of a new provider. The soonest that could happen, both sides say, given the many technical and legal issues — and the question of compensation to Xcel for the assets and customers it would lose — is probably 2017.

And Xcel officials have said there would be other bumps.

Because of the intense environmental ethos here, for example, Xcel customers in Boulder have been disproportionate enrollees in the company’s existing solar energy and conservation programs. The city’s 48,000 Xcel customers account for only 3.4 percent of the statewide ratepayer base, but 15 percent of the solar participants.

What that means is that solar installation rebates, Xcel officials said, totaling more than $38 million to Boulder customers since 2006, have been disproportionally borne by other customers around the state — a subsidy pipeline that could dry up with separation, though that decision would require regulators to weigh in.

And how green is green, anyway? Under Colorado law, shareholder-owned companies like Xcel are covered by the 30 percent renewable energy mandate by 2020. Municipally owned utilities of the size that Boulder would require would have to get to only 10 percent by then.

Jack Begg contributed research.

Article source: http://feeds.nytimes.com/click.phdo?i=eea5948f168ecbba750c48482689e8da

Letters: Letters: Volcker and the Money Market Funds

Re “How Mr. Volcker Would Fix It,” Fair Game, Oct. 23), in which Gretchen Morgenson quoted Paul A. Volcker as criticizing money market mutual funds because they aren’t subject to bank-style regulation:

Mr. Volcker’s comments about money market funds read like another attempt to use the financial crisis — a crisis rooted in banks and banking regulation — to deprive the economy of the enormous benefits that these funds bring investors, businesses, and governments.

Money market funds are subject to tight risk-limiting regulations. They invest in diversified portfolios of short-term, highly liquid securities. They are required to ensure that the securities they own pose minimal credit risk. And they disclose every security they own to the public every month.

Contrary to your assertion that “few in Washington seem willing to discuss” reform of money market funds, our industry led the way on comprehensive regulations that tightened credit, maturity, liquidity and disclosure standards. We continue to work with the Securities and Exchange Commission and other regulators on measures to make money market funds more resilient without undermining their critical role in the economy. Paul Schott Stevens

Washington, Oct. 24

The writer is president and chief executive of the Investment Company Institute, the trade association for mutual funds, including money market funds.

Article source: http://feeds.nytimes.com/click.phdo?i=945c4601d15e8f4bb5b855ab2f2718a6

Letters: Letters: Economic Lessons, Around the Globe

Re “Four Nations, Four Lessons” (Economic View, Oct. 23), in which N. Gregory Mankiw uses the examples of France, Greece, Japan and Zimbabwe to describe policies the United States should avoid:

In the column, he says that if taxes here approach those of Europe, “we can then see whether the next generation of Americans spends less time at work earning a living and more time sipping espresso in outdoor cafes.”

My several months spent living with a family in the French Alps three years ago exposed me to a more normal French experience — of working hard just to pay the bills. Higher taxes ensure public health, a safe retirement, cleaner streets and good schools. Gee, maybe you get what you pay for. France has a fairly thriving democracy without all the rancor we are suffering.

The French are no strangers to issues of immigration, racial tensions and health. Still, to suggest that they escape the “nose-to-the-grindstone American culture” assumes that a scraped nose is a good thing and that a balanced life is laziness. Neither is true, there or here. Rather than criticize progressive societies we should consider learning from them.

Edward McFadd

Encinitas, Calif., Oct. 23

To the Editor:

N. Gregory Mankiw concludes that “if American policy makers don’t rein in entitlement spending over the next several decades, they will have little choice but to raise taxes close to European levels.”

But he leaves a huge part of the federal budget out of his analysis: the hundreds of billions spent on the military.

Our deficit has been largely fueled by fighting two wars of choice while, at the same time, cutting taxes. A discussion of alternatives must consider substantial cuts to the military budget, not just to social programs.

Ben A. Solnit

Morris, Conn., Oct. 23

Article source: http://feeds.nytimes.com/click.phdo?i=e04b53512fec179cbe28b4df6f5e7de1

Florida in a Battle Over Casino Bill

On one side is the Florida Chamber of Commerce and the powerful Walt Disney Company, which strenuously advances the family-friendly vacation-postcard image through its theme parks.

On the other side are billions of dollars in resort-casino investment, beckoning to traditionally gambling-averse lawmakers at a time when the state’s economy is in the doldrums and unemployment remains stubbornly high.

The focus of the battle is a bill that, if adopted, would drastically change the profile of the gambling industry here by allowing three lavish $2 billion resort casinos to open in South Florida — Dade and Broward Counties.

And with the promise of tens of thousands of sorely needed jobs and many millions of dollars in tax revenue, Florida politicians are recalibrating their positions.

Showing its muscle, the Genting Corporation, a Malaysian company, this spring paid $236 million in cash for The Miami Herald headquarters, which hugs Biscayne Bay, and bought up neighboring properties to amass 30 acres for one of the casino projects.

The company, which runs an enormous resort casino in Singapore, plans to invest more than $3 billion and is already talking about fixing highways, building parking garages and partnering with nearby restaurants, hotels and the performing arts center. Its plan would create the largest casino in the country.

It was Genting’s considerable investment and detailed plans that resuscitated gambling as a major legislative issue this year, with lawmakers promoting upscale casinos as an economic lifeline. The Las Vegas Sands, the Wynn and others are also vying for contention.

It is not as if legalized gambling is unknown in Florida, but the proposed destination resorts, as they are called, would be a radical departure from most of the existing gambling sites, which include casinos run by the Seminole Tribe of Florida, as well as racinos — slot machines and no-limit poker rooms at racetracks.

Gov. Rick Scott, a conservative Republican who campaigned on the promise of creating hundreds of thousands of jobs, has remained mostly neutral, saying only that he does not want Florida’s economy to over-rely on gambling. Devastated by the collapse of the housing market, Florida has a 10.6 percent unemployment rate and faces $2.6 billion in budget cuts this year.

The casino bill will be taken up in the two-month legislative session that starts in January. Despite the legions of lobbyists for the gambling industry who have swarmed Tallahassee and the state’s appetite for treasure, victory for the casinos is hardly a cinch. That is because the gambling industry faces a daunting opponent: Disney, Florida’s most powerful corporation.

Disney has long decried gambling as counterproductive to Florida’s theme park tourism. Also in Disney’s corner is the Florida Chamber of Commerce, an influential force among state Republicans, which argues that expanding gambling would mar the state’s drive to court other industries. The chamber’s chairman is a Walt Disney World executive. The powerful speaker of the House, Dean Cannon of Orlando, so far has stayed quiet on the project.

“Expanding casino gambling in Florida would never make sense in a good economy,” said Mark A. Wilson, the president and chief executive of the Florida Chamber of Commerce. “And the only reason they are even targeting Florida is that they are hoping that desperate people will reach for desperate measures. There is never a good time to push a bad idea.”

But even Jeb Bush, who vigorously fought the expansion of gambling while he was governor, says it appears casinos might find a home in the state next year, so long as it is in South Florida.

“The north will let the heathens in the south have the casinos, and they’ll take the benefits,” Mr. Bush told The Las Vegas Review-Journal editorial board this month.

The two lawmakers who introduced the bill argue that Florida became partners with the gambling industry years ago. The state receives hundreds of millions of dollars from the Seminole Tribe, which runs seven casinos statewide on its reservations, including the Hard Rock Hotel and Casino in Hollywood. The lawmakers want to end the tribe’s monopoly on casinos. Florida also pockets healthy tax revenues from South Florida racinos. At the same time, the state is awash in Internet sweepstakes cafes that critics say double as low-rent, strip-mall gambling operations.

Christine Jordan Sexton contributed reporting from Tallahassee.

Article source: http://feeds.nytimes.com/click.phdo?i=172727c15f2e67fa745e7d99e466d6c3

Chevron Doubled Its Profit in the 3rd Quarter

The company’s profit rose to $7.8 billion, or $3.92 a share, from $3.8 billion, or $1.87 a share, a year earlier.

The average analyst estimate was $3.48 a share, according to Thomson Reuters, though the company had said this month that it would report a profit similar to the $7.7 billion it earned in the second quarter.

Shares of Chevron closed 0.6 percent higher at $109.64 on Friday, within sight of their record high of $110, hit on Thursday. Third-quarter sales rose 26 percent to $61.26 billion, while its oil and gas output fell to 2.6 million barrels of oil equivalent per day from 2.74 million a year ago.

Getting production to grow remains a nagging problem for all the big oil companies. Chevron expects an increase of 100,000 to 150,000 barrels per day in the fourth quarter, driven by production in Thailand and the Gulf of Mexico from projects that are either new, upgraded or repaired.

The profit growth was driven by oil prices. Benchmark Brent crude averaged $112 per barrel in the quarter, up from $77 last year.

Chevron also recorded a gain of about $500 million from the sale of its British refinery to Valero Energy.

This week, the company increased its dividend for the second time this year, by 3.8 percent. Pat Yarrington, the company’s chief financial officer, said this reflected confidence in its net cash position of $10.6 billion, though she acknowledged some investors would prefer more share buybacks and said the board would always consider that.

Chevron bought back $1.25 billion worth of its own stock in the third quarter, and it expected to buy back about the same amount in the fourth quarter, she said.

Article source: http://feeds.nytimes.com/click.phdo?i=8753c3728ab2f674fa17b9f03b78b8d7

Whirlpool Misses Expectations and Will Cut Jobs

The company, the world’s biggest appliance maker, also on Friday cut its 2011 earnings outlook drastically and reported third-quarter results that missed expectations, hurt by higher costs and a slowdown in emerging markets.

The company, whose brands include Maytag and KitchenAid, has been squeezed by weak American demand since the recession and by rising costs for materials. Because of Whirlpool’s size, its performance can signal whether consumers are comfortable spending on big-ticket items.

To offset slowing North American sales, Whirlpool has turned to emerging markets. But the company said Friday that sales had slowed there, too.

The Whirlpool jobs to be cut are mostly in North America and Europe. They include 1,200 salaried positions and the closing of the company’s Fort Smith, Ark., plant.

The shutdown of the Fort Smith plant will affect 884 hourly workers and 90 salaried employees. An additional 800 workers were on layoff from the factory and on a recall list.

The company’s third-quarter net income more than doubled to $177 million, or $2.27 a share, from $79 million, or $1.02 a share. Revenue rose 2 percent to $4.63 billion.

“Our results were negatively impacted by recessionary demand levels in developed countries, a slowdown in emerging markets and high levels of inflation in material costs,” said Jeff Fettig, Whirlpool’s chief executive.

The company now expects 2011 net income will be $4.75 to $5.25 a share. Its previous guidance was that net income would be at the low end of $7.25 to $8.25 a share.

Shares of Whirlpool fell 14 percent, to close at $51.80.

Article source: http://feeds.nytimes.com/click.phdo?i=3aad217a4a31b06fbab48de1ed5dda91

Saab Lives On, Saved by Chinese Investors

Zhejiang Youngman Lotus Automobile and Pang Da Automobile Trade agreed to pay 100 million euros, or $140 million, for Saab and its British unit, according to Saab’s parent company, Swedish Automobile.

“We had been struggling for the last six or seven months, to the extent that many people had given up on us,” Victor R. Muller, the Dutch entrepreneur behind Spyker cars and Swedish Automobile, said in a conference call with journalists.

With the new owners, he said, “there will be stability, there will be funds and there will be clarity for the future of our business.”

It was the second time in two years that Chinese investors had come to the aid of the Swedish auto industry. Last year, the Zhejiang Geely Holding Group paid Ford Motor $1.8 billion for Volvo.

Martin Skold, a scholar at the Stockholm School of Economics who follows the auto industry, said it was too early to say Saab was saved.

“Saab is in great need of an enormous amount of money,” he said, estimating that it would take at least $800 million and possibly as much as $1.5 billion to turn it around. “We’ll have to wait to see how much the Chinese are willing to invest in it,” he added.

Mr. Muller acquired Saab last year from General Motors, which was then recovering from its own bankruptcy. But Saab, which has a long-established base of dedicated customers, has so far not been able to right itself.

The Chinese companies agreed in the spring to invest a combined 245 million euros ($347 million) for a 54 percent stake after Saab’s main factory in Trollhattan, Sweden, shut down over unpaid bills. But negotiations dragged on, leaving Saab in an increasingly precarious state.

With employees unpaid for months, Saab’s unions began legal proceedings in September that could have put the company into bankruptcy. Mr. Muller sought and received court protection from creditors to reorganize and complete the Chinese investments.

Within the last week, it appeared that the final countdown had begun, when the administrator in charge of the voluntary reorganization, Guy Lofalk, recommended to the court overseeing the case that the effort be halted.

Saab said Friday that Mr. Lofalk had “withdrawn his application to exit reorganization.” The agreement with the two Chinese companies is valid until Nov. 15, Saab said, provided the reorganization continues. Mr. Lofalk did not immediately reply to a request for comment.

Mr. Muller, who owns 30 percent of Swedish Automobile, declined to detail how his involvement with Saab, including the sale to the Chinese, had affected his personal wealth. But he said: “You can rest assured that I lost a lot of money.”

He said Youngman and Pang Da had “expressed a desire for me to remain involved,” but he said whatever role he played in the future would “absolutely be up to the new owners.” The Chinese companies have demonstrated that they have the resources to invest up to 500 million euros ($708 million) in Saab, he said, and are planning to resume production at the Trollhattan plant as well as in China, “which will become the second home market for Saab.”

The deal first requires the approval of the authorities in Beijing, a requirement that put an end to the efforts of a previous would-be rescuer, the Hawtai Motor Group. It must also pass muster with the European Investment Bank and the Swedish government, both of which have lent money to Saab, as well as G.M., which has lingering links to Saab, including intellectual property and preferred shares with a face value of $326 million.

James R. Cain, a G.M. spokesman, said it was “impossible to say anything constructive” because G.M. had not been briefed on the agreement and was waiting for information.

But the big question now lies in whether Chinese officials, silent on the deal so far, have secretly blessed the offer by the two Chinese companies and plan to give it regulatory approval.

“Beijing does not like to endorse companies that fly outside their radar screen,” said Michael Dunne, an independent auto analyst specializing in Asian manufacturers. “We’ll very quickly find out whether Youngman and Pang Da have enough political muscle to get this deal done.”

A woman answering the phone at the general manager’s office of Pang Da confirmed Friday that an agreement had been reached with Saab, but she had no comment on the details. A woman answering the phone at Youngman said that she had no information and that all senior people in the office were traveling and could not be reached for comment.

Keith Bradsher and Hilda Wang contributed reporting from Hong Kong.

Article source: http://www.nytimes.com/2011/10/29/business/global/chinese-carmakers-to-buy-saab-pulling-it-back-from-the-brink.html?partner=rss&emc=rss

Preoccupations: 25 Years in Stage Role, Actress Still Adds Variety

ASK people to describe a typical day at work and some will say it’s impossible — each day is different. But there are other jobs where people do the same thing every day, like driving the same bus route, or performing the same role in a play year after year. I’ve played the psychiatrist Margaret Brent in “Perfect Crime,” an off-Broadway play, for almost 25 years, ever since it opened.

Friends ask me: “How do you do that every night? Doesn’t it get boring?” “Never,” I tell them. There are always external events that affect the performance, and there are things I do myself to make each performance a little different. I believe that anyone with a repetitive job can do things to make it more interesting. Traffic cops who dance while directing traffic are one example, and subway workers who broadcast entertaining announcements are another.

I’ve heard of employers coming up with ideas to stave off employees’ boredom in certain jobs, such as offering incentives, but for me, the audience does that. Audiences differ: some laugh more than others, for example, and that alters what I do. Near the end of the play, I tell the detective who is trying to make me confess to a murder that I love him. Sometimes the audience laughs, sometimes someone murmurs “Oh, my God” and sometimes the audience is silent, waiting to hear what the detective will say next. Each audience response changes the energy in the room — and our performances.

Then there are the decisions I make to change the role slightly. I say the same lines and stand in the same places show after show, but one night I might decide to be a little nastier to the detective who suspects me, for example. Or I might ask myself: Does she really love him when she says “I love you?” Depending on the night, my mood, the audience, and the particular actor playing the detective, that line changes. There are hundreds of ways to say “I love you,” and I have tried them all.

Just like other kinds of employees, I’m affected by things that have happened during my day. If I’ve had an argument, or if I’ve received good news, it affects how I perform that night. I think I instinctively incorporate my mood into my performance in subtle ways. When I have gone through emotionally difficult times, the comforting consistency of the work has helped me enormously, and I get to cry and to slap and kiss people, which is very cathartic.

Some jobs are more repetitive than you might think at first — even in professional sports. Last spring I posed for a publicity photograph with Cal Ripken Jr., who played for the Baltimore Orioles for 21 years, appearing in 2,632 consecutive games. People magazine called me “The Cal Ripken of Broadway” because of my long run in this play.

I’ll bet that people with repetitive jobs will tell you that they grow with the work if they’ve done it for a long time. I like to think that I’m a better actress after playing the role all these years, and I hope that I bring maturity to the role now.

I enjoy challenging myself to bring something new to the role every single time I play it. It’s enormously satisfying to know I can do the job well over and over. These types of jobs allow you — or perhaps even force you — to use different parts of your brain. I think employees are happiest when they can do that.

On the other hand, some people love rote or mechanical or mindless tasks because there’s still a sense of accomplishment after completing them. I’ve known people to find tasks comforting that others label busywork, especially when they’re going through difficult times. When I have that kind of work, it helps me clear my mind.

A  REPETITIVE job is a trade-off, too, because it can provide stability. That’s an intrinsic reward. I crave constancy in a field that doesn’t have a lot of security. I’ve missed only four of our more than 10,000 performances and those were for family weddings.

We had an unexpected night off during Hurricane Irene this summer and I almost didn’t know what to do with the free night. I’ve never had a vacation during this run, but that’s O.K. Doing the same thing over and over gives me pleasure.

I have done some television and film work, and although it is fun, waiting around on the set before you are called to perform makes me crazy. I love the idea that every night at 8 p.m. I will be onstage doing what I love. If I found it boring, I couldn’t do it. My job fills me up and makes me happy.

As told to Patricia R. Olsen. E-mail: preoccupations@nytimes.com.

Article source: http://www.nytimes.com/2011/10/30/jobs/25-years-in-stage-role-actress-still-adds-variety.html?partner=rss&emc=rss

Special Report: Central European Business: In Euro Zone or Not, Countries of Central Europe Are Buffeted

With the region’s economies — many of them small but also open— dependent on exports to euro zone countries, and with the prospect that even the German economy, Europe’s largest, could slow markedly in the coming months, analysts across Central Europe are bracing themselves for some tough times ahead.

“The euro crisis is affecting Central Europe in a number of different ways,” said Maciej Krzak, economist at the Center for Social and Economic Research, an independent research institute in Warsaw. “For one thing, it impacts on trade flows and growth in Central Europe. And there is a kind of contagion: risk aversion and capital flights.”

The European Bank for Reconstruction and Development, or E.B.R.D., which supports the development of market economies and democracies in countries stretching from Central Europe to Central Asia, says the euro zone’s sovereign debt troubles will inevitably cloud the growth prospects of its eastern neighbors for the coming year.

“Until the resolution of the euro zone crisis, a period of continued market instability, constrained credit as well as the resulting near standstill in Western Europe is expected to seriously affect the outlook for the E.B.R.D. region,” the bank warned in a report on regional economic prospects, published in October.

“Recovery and growth will be thrown off track” in many countries of the region, “although none of them is projected to see negative growth in 2011 or 2012,” the report said.

Take the case of Estonia.

“We suffered a huge amount during the global financial crisis,” said Marje Josing, director of the Estonian Institute of Economic Research, based in Tallinn.

Mrs. Josing recalled how in 2009, the Estonian government introduced a huge savings program, cutting its budget 10 percent while private companies cut salaries 20 percent.

“We knew what we had to do if we wanted to survive, attract investment and become competitive,” Mrs. Josing said. “And we did. Our companies became more productive and competitive. We brought the budget deficit under control, and we joined the euro.”

That was at the start of this year — just as the sovereign debt crisis on the euro zone’s southern flank came to a head and growth bogged down across Europe.

Estonia’s exports to other euro zone countries make up a quarter of its gross domestic product, with its close neighbor and fellow euro member Finland, one of its most important trading partners. Finnish companies are a major source of work for Estonian subcontractors.

“Of course we are feeling the pressure, with the slowdown in growth sweeping across the euro zone countries,” Mrs. Josing said.

With a population of just 1.3 million, the country is highly vulnerable to external shocks: and with company order backlogs declining, the slowdown is feeding quickly through to the job market, where the unemployment rate stood at 13.3 percent in the second quarter.

Worse may be to come. The E.B.R.D., in its report this month, revised down its economic forecasts for the Baltic states. It now expects the euro zone crisis to slow growth in the Baltic region to 1.7 percent next year, down from a 3.4 percent growth rate forecast as recently as July.

“The E.B.R.D. is predicting a slow-down in emerging Europe’s economic growth next year with the continuing euro zone sovereign debt crisis posing challenges to recovery from the 2008-2009 global financial crisis,” the bank said in its report.

For all that, the Estonian government does not regret its decision to join the common currency. “Before we joined the euro zone the Estonian crown was pegged in any case to the euro,” Mrs. Josing noted. Adopting the currency, she said, “provided discipline.”

Article source: http://www.nytimes.com/2011/10/31/business/global/31iht-RCE-OVERVIEW31.html?partner=rss&emc=rss

Practical Traveler: An Update on Holiday Air Travel

This season, planes will be even more tightly packed as airlines continue to cut capacity through the end of the year and into the next, even as more passengers take to the skies. But thicker crowds aren’t the only differences that holiday travelers can expect this year. Some changes, including modified security screenings for children, will be welcome, others won’t.

Below, some of the most notable changes that have been introduced over the last 12 months, as well as a few new options to help avoid long lines and luggage fees.

Airport Security

The big news this holiday season is that children 12 and under can leave their shoes on when going through security. The policy change, which began as part of a test in August by the Transportation Security Administration and became official last month, also curtails, though doesn’t completely eliminate, pat-downs of children. Now, children may be sent through detectors or image machines multiple times or hand swabs may be used to check for traces of explosives, in lieu of a pat-down.

Adults must still go through the usual drill of removing shoes, jackets, belts and watches; taking out laptops and cellphones; and making sure their 3.4-ounce tubes of toothpaste and shaving gel are safely sealed in a quart-size plastic bag.

The T.S.A. has also installed new software on certain body scanners designed to improve privacy by replacing the virtual nude images of passengers, previously used, with a generic, computer-generated outline. Passengers are now able to view the same image online that the security officer sees on a computer screen as they pass through security.

This fall the T.S.A. plans to test the same software on full-body X-ray scanners, which still use actual images of passengers that show the contours of the body and reveal foreign objects. Currently, there are nearly 510 imaging scanners at some 90 airports nationwide, with additional units planned for later this year.

Passengers willing to pay for access to expedited security lines will find that more airlines are offering the service as an add-on. In June, JetBlue introduced Even More Speed, which offers passengers who, depending on the flight, pay $10 to $65 extra for a seat with more legroom, as well as a spot in an expedited security line at 15 airports, including Newark Liberty, San Francisco and Kennedy. United has been selling expedited security and preboarding (from $9) for a couple of years now.

And American has been expanding its Five Star Service program to more airports including Boston and San Francisco, which offers expedited security lines along with other V.I.P. services like lounge access, preboarding and assistance with things like check-in, bags and airport connections for $125 a person.

Boarding

Compounding confusion at the gate, a couple of airlines have changed their boarding procedures this year. American, which used to board back to front, now randomly assigns travelers without elite status to boarding groups. Coach passengers can buy their way into the first group, behind first class and elite frequent fliers, for $10. The carrier says the revised process, which it introduced in May, has improved boarding times 5 to 10 percent and reduced the number of bags checked at the gate.

United, which had switched to boarding by row from back to front, returned to window-middle-aisle boarding zones this summer. It will switch its Continental Airlines unit, which boards back-to-front, to window-middle-aisle next year.

Fees for Checked Bags

Prepaying for checked bags online this season? Don’t expect a discount. Airlines like Delta, United and Continental that used to knock $2 to $5 off for prepayments eliminated those price reductions, bringing the cost for checking one bag on many domestic flights to $25, and $35 for the second, whether they are paid in advance or not. To avoid paying those fees, some passengers have been lugging more belongings onto already crowded planes — and will no doubt continue to do so over the holidays. JetBlue still offers the first checked bag free and Southwest still offers two.

Travelers who try to avoid the carry-on mess by stuffing holiday gifts in checked bags may be caught off guard by increased fees for excess luggage. “In some cases the fees are shockingly high,” said George Hobica, founder of Airfarewatchdog.com. In March, for example, United doubled fees for overweight luggage weighing 71 to 99.9 pounds to $400 each way for bags on most international routes, up from $200, and $200 on domestic routes, from $100.

Oversize bags on United measuring more than 62 linear inches are now $200 extra on international routes, up from $100 previously. Similarly, US Airways now charges $175 each way for overweight bags from 71 to 100 pounds on most international flights, up from $120, according to industry experts.

Some airlines also added or increased fees for a second checked bag on international routes. Delta recently began charging $60 each way for a second checked bag (if paid online) for flights between the United States and South America, Asia, India, Australia and New Zealand. In February, American began charging $30 each way for a second bag between the United States and the Caribbean and Central America.

New Credit Card Perks

One way to improve your airport experience and decrease luggage fees is to sign up for a new credit card, as more card issuers are offering a wider range of benefits. Just last month, Delta added priority boarding and 20 percent off in-flight food, beverages and movies to the range of perks it offers Gold and Platinum Delta SkyMiles American Express card holders. The card, which comes with an annual $95 fee, had already included the first checked bag free for up to eight traveling companions.

In July, Chase introduced the United MileagePlus Explorer Card, which includes priority boarding, two United airport club passes a year, the first checked bag free and other benefits for a $95 annual fee. Also in July, Citibank introduced the American Airlines-branded Citi Executive AAdvantage World Elite MasterCard, with a roster of perks, including lounge access, expedited security and priority boarding and free checked bags, for a $450 annual fee. And this year, American Express added some perks for Platinum Card holders who pay annual fees of $450; benefits include Priority Pass Select airport lounge access in more than 300 cities worldwide (normally $249 for 10 visits), and free membership to Global Entry, which offers expedited security clearance for preapproved travelers entering the United States. The card also offers $200 a year in reimbursements for airline fees.

Article source: http://feeds.nytimes.com/click.phdo?i=971ea03bcc0751ce3acf13b95585f827