US Airways asked a bankruptcy judge Friday to cancel labor contracts with three of its unions and impose much lower pay so it can move ahead with a plan to permanently cut costs, reposition itself as a low-cost carrier and avoid a possible liquidation.
Novell files new Microsoft suit
Less than a week after collecting a $536 million settlement from Microsoft Corp., Novell Inc. on Friday filed another lawsuit accusing the software giant of violating antitrust laws. The suit, which dovetails with the U.S. Justice Department’s antitrust case against Microsoft, claims the company used its market dominance in the mid-1990s to keep the WordPerfect word processing program and Quattro Pro spreadsheet application from gaining wider commercial acceptance. The lawsuit alleges that Microsoft withheld technical information about Windows to prevent Novell from updating its software, made its operating system inhospitable to WordPerfect and other Novell programs, and leveraged its own ubiquity to prevent Novell from offering its programs to customers.
Visteon to offer worker buyouts
Struggling automotive supplier Visteon Corp. told its 8,300 white-collar workers that it plans to offer buyouts to a significant number of employees by year’s end. The company warned that it might lay off employees if too few accept the buyouts, which will be based on seniority.
FedEx tries to keep terrorism payment
FedEx Corp. is challenging an order by the U.S. Department of Transportation to repay $29 million of the federal money it received after the 2001 terrorist attacks, a spokesman said Friday. The Air Transportation Safety and System Stabilization Act provided financial relief to U.S. air carriers after the Sept. 11 attacks. FedEx was paid $101 million under the act in 2002. But a review by the Department of Transportation determined that the company was only entitled to $72 million, and it wants FedEx to repay the rest.
European Union’s economy slows
Growth in the euro-zone economy slowed sharply in the third quarter, led by weaker than expected results in France and Germany, and is expected to remain sluggish in the next six months, according to data released Friday. The European Union’s statistics agency showed that the economy of the 12 nations using the common currency grew by 0.3 percent from the second quarter, and by 1.9 percent from the same period in 2003. The figures were below most economists’ expectations.
From Herald news services
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