NATIONAL BRIEFING

Tuesday, August 12, 2008

AIRLINES

Pilots Agree to Delta Contract

Delta Air Lines and Northwest Airlines pilots approved a new joint contract, clearing the way for combining their unions after a merger that will create the world's largest carrier. The accord was supported by more than 61 percent of Delta pilots who voted and by about 87 percent of Northwest pilots, the airlines' pilot groups said in a statement.

The ratification removes a hurdle for Delta as it works to close its purchase of Northwest. Delta's 7,000 pilots will get a 3.5 percent equity stake in the combined carrier, and their 5,100 peers at Northwest will get 2.38 percent.

The two union chapters now must draft a seniority list to set pilots' pay, vacation, routes and the jets they fly.

United Pilots Target CEO

The union representing pilots at United Airlines urged chief executive Glenn Tilton to resign, accusing him of steering the nation's No. 2 carrier down a path to poor customer service, employee morale and financial performance.

In a statement, the United chapter of the Air Line Pilots Association said the carrier needs new leadership. It launched a Web site to draw attention to what it calls Tilton's failures since he took over in September 2002.

The pilots have stepped up criticism of United's top executives in recent months, angry that they have not gotten additional compensation since their pay was cut during the company's restructuring. Their pension was also terminated while United's parent company was under Chapter 11 bankruptcy protection.

TRANSPORTATION

TSA Clears Security Firm

Verified Identity Pass, the largest operator of a quick-check security program in U.S. airports, will be allowed to resume signing up customers after the company encrypted its computers, a federal agency said.

The Transportation Security Administration last week suspended Verified from enrolling new participants in the Registered Traveler program after the company lost a laptop computer containing unencrypted records of 33,000 applicants. The company said it recovered the laptop and that the records had not been accessed.

Verified Identity took steps to encrypt computers and had an outside party verify the action, the TSA said. TSA said it will conduct random audits to further ensure compliance.

BANKING

Wachovia Plans More Job Cuts

Wachovia plans to cut 600 more jobs than it previously expected as it works to reduce expenses in the face of staggering losses tied to mortgage debt, the bank said in its filing of quarterly results with the Securities and Exchange Commission.

The bank also said it has set aside $500 million related to settlement discussions with regulators over the sale of auction-rate securities. That move widened Wachovia's second-quarter loss to $9.11 billion from the $8.86 billion it reported last month.

LEGAL

Tiffany Appeals eBay Ruling

Tiffany & Co. challenged a federal ruling that largely absolved eBay of policing its site for counterfeit items, saying the judge was wrong to leave the primary burden to the jewelry maker. The appeal with the U.S. Court of Appeals for the 2nd Circuit in New York extends a case that Tiffany filed against eBay in 2004 arguing that most items listed on eBay as genuine Tiffany products were fakes.

Last month, U.S. District Judge Richard J. Sullivan ruled that trademark holders like the jewelry maker, rather than auction platforms like eBay, are responsible for policing their brands online.

TREASURY BILLS

T-bill rates rose. The discount rate on three-month Treasury bills auctioned yesterday rose to 1.870 percent from 1.710 percent last week. Rates on six-month bills rose to 2.020 percent from 1.920 percent. The annualized return to investors is 1.905 percent for three-month bills, with a $10,000 bill selling for $9,952.73, and 2.069 percent for a six-month bill selling for $9,897.88. Separately, the Federal Reserve said the average yield for one-year Treasury bills, a popular index for making changes in adjustable-rate mortgages, fell to 2.23 percent last week from 2.30 percent two weeks ago.

Compiled from reports by Washington Post staff writers, the Associated Press and Bloomberg News.