Airlines' plans for 2013 up in the air

Airfares will be on the rise in 2013, and those niggling airline fees will metamorphose into optional bundles of services.

Meanwhile, onboard amenities, such as Internet access, entertainment options and refreshed interiors, will abound among U.S. carriers, but tight seating in coach probably won't improve.

And 2013 might be the year you'll finally be able to keep your smartphone, iPad or Kindle turned on during takeoffs and landings.

Those are some of the predictions airline industry experts foresee in the new year. Here's the lowdown on fares, fees and flight experience for 2013.

Higher fares forecast

Airlines pushed through six fare increases in 2012. Expect a similar number in the new year, said Rick Seaney, co-founder of FareCompare.com.

"I wouldn't be surprised to see airfares rise like they did this year, between 3 and 6 percent domestically," Seaney said. That's because airlines will succeed in properly balancing supply and demand by trimming the number of seats they offer to match "decent, but bordering on tepid, demand."

Fares are typically driven by four main factors: competition, most of all, then supply, demand and oil prices. "If you look at those drivers, they are, for the most part, on the airlines' side, which gives them pricing power," Seaney said.

That doesn't mean there won't be good airfare deals on some flights on some routes. And consumers will still see lower prices during off-peak days, such as Tuesday, Wednesday and Saturday departures and off-peak seasons, such as late January and early February. Like this year, summertime fares probably will stay relatively high, he said.

Airline mergers can also affect fares, and a huge one could take place early in 2013. American Airlines and US Airways are in talks about combining.

The general consensus among consumer advocates is that airline mergers aren't good for passengers.

"Any time you have two big airlines merging, that means consumers have less choice and competition is reduced, which only translates to higher prices," said Charlie Leocha, director of the Consumer Travel Alliance.

However, a bit of new evidence bucks that conventional wisdom. Despite four mega-mergers in the U.S. airline industry during the past seven years, fares have not increased significantly, just 1.8 percent per year, according to a December report from professional services firm PwC. In fact, average domestic fares decreased 1 percent from 2004 to 2011 when inflation is factored in, the report found.

Fliers know full well, however, that the fare isn't all that counts nowadays. There are those fees.

Fees get a makeover

The most noticeable trend in recent years with airline fees is that there are more of them: fees for checked bags, aisle seats, onboard meals, among many others. 

"What we hear is that people pay their fare and get to the airport and feel they're constantly being nickeled-and-dimed to death for things that used to be included," said Kate Hanni, founder of FlyersRights.org. 

The top five U.S. carriers alone generated more than $12 billion in fees in 2011, with even more expected through 2012, according to the PwC report.

What consumers call fees, airlines call "unbundling" — making a la carte choices from services that used to be included in the fare.

A likely trend for 2013 might be called "rebundling," airlines packaging a few now-optional services and charging for a tier of service.

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Expectations low for White House 'fiscal cliff' meeting

WASHINGTON (Reuters) - President Barack Obama and congressional leaders were to meet on Friday for the first time since November with no sign of progress in resolving their differences over the federal budget and low expectations for a "fiscal cliff" deal before January 1.

Instead, members of Congress are increasingly looking at the period immediately after the December 31 deadline to come up with a retroactive fix to avoid the steep tax hikes and sharp spending cuts that economists have said could plunge the country into another recession.

With taxes on all Americans set to rise when rates established under former President George W. Bush expire on December 31, lawmakers would be able to come back in January and take a more politically palatable vote to cut some of the tax rates.

U.S. stocks fell on Friday, with the Dow Jones industrial average dropping 0.48 percent as investors fretted about the lack of certainty.

But some in the market were resigned to Washington going beyond the New Year's Day deadline, as long as a serious agreement on deficit reduction comes out of the talks in early January.

"Regardless of whether the government resolves the issues now, any deal can easily be retroactive. We're not as concerned with January 1 as the market seems to be," said Richard Weiss, a Mountain View, California-based senior money manager at American Century Investments.

The new factor in the mix was involvement by Republican Senate Minority Leader Mitch McConnell of Kentucky, who held conversations with Obama this week and said he expected a new proposal from the president that he would consider.

The White House spent much of Thursday stifling expectations for any new offer from Obama, beyond the limited fallback plan he outlined in vague terms on December 21, which would protect what he described as "middle class Americans" from the tax hikes, extend unemployment insurance and lay the "groundwork for further work" on deficit reduction and tax reform.

The major sticking point on taxes is Republican opposition to hikes on anyone, particularly in the absence of heavy cuts in spending for so-called entitlement programs such as Medicare and Medicaid, the government-run health programs for senior citizens and the poor.

Democrats in Congress want to keep lower tax rates for most Americans but raise them on those earning above $250,000 a year.

"The wealthy have got to kick in," Senator Debbie Stabenow, a Michigan Democrat, said Friday on CNN. "The tough part is in the House, where they have taken this very extreme position" of "protecting the wealthy at all costs," she said.

"It's feeling very much to me like an optical meeting than a substantive meeting," said Republican Senator Bob Corker of Tennessee, noting that it was not a sign of urgency to set a meeting for mid-afternoon with a deadline just days away.

"Any time you announce a meeting publicly in Washington, it's usually for political theater purposes," Senator Lindsey Graham, a South Carolina Republican, said on Thursday on Fox News.

"When the president calls congressional leaders to the White House, it's all political theater or they've got a deal. My bet is all political theater," said Graham, adding that he did not believe an agreement could be reached before the deadline.

(Editing by Alistair Bell and Vicki Allen)

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Apple loses another copyright lawsuit in China: Xinhua

SHANGHAI (Reuters) - A Chinese court has fined Apple Inc 1 million yuan ($160,400) for hosting third-party applications on its App Store that were selling pirated electronic books, the official Xinhua news agency reported on Friday.

Apple is to pay compensation to eight Chinese writers and two companies for violating their copyrights, the Beijing No.2 Intermediate People's Court ruled on Thursday, Xinhua said.

Earlier in the year, a group of Chinese authors filed the suit against Apple, saying an unidentified number of apps on its App Store sold unlicensed copies of their books. The group of eight authors was seeking 10 million yuan in damages.

"We are disappointed at the judgment. Some of our best-selling authors only got 7,000 yuan. The judgment is a signal of encouraging piracy," Bei Zhicheng, a spokesman for the group, told Reuters.

Apple said in a statement that it takes copyright infringement complaints "very seriously".

"We're always updating our service to better assist content owners in protecting their rights," Apple spokeswoman Carolyn Wu said.

China has the world's largest Internet and mobile market by number of users, but piracy costs software companies billions of dollars each year.

Apple, whose products enjoy great popularity in China, has faced a string of legal headaches this year. In July, Apple paid 60 million yuan to a Chinese firm, Proview Technology, to settle a long-running lawsuit over the iPad trademark in China.

($1 = 6.2360 Chinese yuan)

(Reporting by Shanghai Newsroom and Melanie Lee; Editing by Kazunori Takada and Matt Driskill)

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NHL makes new offer; lockout enters critical stage

NEW YORK (AP) — The NHL made a new proposal to the players' association, hoping to spark talks to end the long lockout and save the hockey season.

Deputy commissioner Bill Daly said Friday the league made its offer Thursday and was waiting for a response. The sides haven't met in person since a second round of talks with a federal mediator broke down Dec. 13.

The lockout has reached its 104th day, and the NHL said it doesn't want a season of less than 48 games. To make that possible, a deal likely must be reached by mid-January.

"We delivered to the union a new, comprehensive proposal for a successor CBA," Daly said in a statement Friday. "We are not prepared to discuss the details of our proposal at this time. We are hopeful that once the union's staff and negotiating committee have had an opportunity to thoroughly review and consider our new proposal, they will share it with the players. We want to be back on the ice as soon as possible."

The union didn't immediately respond to a request for a comment.

The lockout has reached a critical stage, threatening to force a complete cancellation of a season for the second time in eight years. All games through Jan. 14, plus the Winter Classic and the All-Star game already have been called off. The next round of cuts could claim the entire schedule.

The NHL is the only North American professional sports league to cancel a season because of a labor dispute, losing the 2004-05 campaign to a lockout. A 48-game season was played in 1995 after a lockout stretched into January.

It is still possible this dispute could eventually be settled in the courts if the sides can't reach a deal on their own.

The NHL filed a class-action suit this month in U.S. District Court in New York in an effort to show its lockout is legal. In a separate move, the league filed an unfair labor practice charge with the National Labor Relations Board, contending bad-faith bargaining by the union.

Those moves were made because the players' association took steps toward potentially filing a "disclaimer of interest," which would dissolve the union and make it a trade association. That would allow players to file antitrust lawsuits against the NHL.

Union members voted overwhelmingly to give their board the power to file the disclaimer by Jan. 2. If that deadline passes, another authorization vote could be held to approve a later filing.

Negotiations between the NHL and the union have been at a standstill since talks ended Dec. 6. One week later, the sides convened again with federal mediators in New Jersey, but still couldn't make progress.

The sides have been unable to reach agreement on the length of the new deal, how long individual player contract can be, and the variance in salary from year to year. The NHL is looking for an even split of revenues with players. In its previous offer this month, the league agreed to increase its amount of deferred payments from $211 million to $300 million.

The NHL pulled all previous offers off the table after the union didn't agree to terms on its last proposal without negotiation.

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Singer Travis pleads not guilty to assault

SAN ANTONIO (Reuters) – Country singer Randy Travis pleaded not guilty to misdemeanor assault in a municipal courtroom in the Dallas suburb of Plano on Friday, his lawyer said.

Lawyer Peter A. Schulte told Reuters his client is “absolutely not guilty of this crime.”

Police say Travis assaulted a man in a church parking lot in Plano in August while attempting to intervene in a disagreement between a woman he was with and the woman’s estranged husband.

“He was actually being a good Samaritan at the time, stepping in to save two women from being assaulted,” Schulte said. He said the woman Travis was with and his daughter were being harassed by two men.

The charge against Travis carries a maximum $ 500 fine and no jail time. The case is set for trial March 11.

The altercation occurred during a bad stretch for the 53-year-old Grammy winner. Earlier in August, Travis was arrested on suspicion of drunken driving after he was found lying naked near his wrecked car along a north Texas highway. He also was accused of threatening to shoot and kill the troopers investigating the case, according to a police report.

The North Carolina-born country singer, known for hits such as “Forever and Ever, Amen,” also was arrested in February for drunken driving while sitting in his car in the parking lot of another north Texas church.

Schulte said Travis has been doing well since the two August incidents. He said his client was upbeat as he left the courtroom Friday.

“He turned and wished everybody who was there a merry Christmas and a happy and healthy New Year,” he said.

(Editing by Corrie MacLaggan and Bill Trott)

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Kenya hospital imprisons new mothers with no money

NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.

Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.

Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.

"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."

"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."

The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.

Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.

"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.

She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.

A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.

"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.

Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.

One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.

Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.

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Associated Press reporter Tom Odula contributed to this report.

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FBI removes many redactions in Marilyn Monroe file

LOS ANGELES (AP) — FBI files on Marilyn Monroe that could not be located earlier this year have been found and re-issued, revealing the names of some of the movie star's communist-leaning acquaintances who drew concern from government officials and her own entourage.

But the files, which previously had been heavily redacted, do not contain any new information about Monroe's death 50 years ago. Letters and news clippings included in the file show the bureau was aware of theories the actress had been killed, but they do not show that any effort was undertaken to investigate the claims. Los Angeles authorities concluded Monroe's death was a probable suicide.

Recently obtained by The Associated Press through the Freedom of Information Act, the updated FBI files do show the extent the agency was monitoring Monroe for ties to communism in the years before her death in August 1962.

The records reveal that some in Monroe's inner circle were concerned about her association with Frederick Vanderbilt Field, who was disinherited from his wealthy family over his leftist views.

A trip to Mexico earlier that year to shop for furniture brought Monroe in contact with Field, who was living in the country with his wife in self-imposed exile. Informants reported to the FBI that a "mutual infatuation" had developed between Field and Monroe, which caused concern among some in her inner circle, including her therapist, the files state.

"This situation caused considerable dismay among Miss Monroe's entourage and also among the (American Communist Group in Mexico)," the file states. It includes references to an interior decorator who worked with Monroe's analyst reporting her connection to Field to the doctor.

Field's autobiography devotes an entire chapter to Monroe's Mexico trip, "An Indian Summer Interlude." He mentions that he and his wife accompanied Monroe on shopping trips and meals and he only mentions politics once in a passage on their dinnertime conversations.

"She talked mostly about herself and some of the people who had been or still were important to her," Field wrote in "From Right to Left." ''She told us about her strong feelings for civil rights, for black equality, as well as her admiration for what was being done in China, her anger at red-baiting and McCarthyism and her hatred of (FBI director) J. Edgar Hoover."

Under Hoover's watch, the FBI kept tabs on the political and social lives of many celebrities, including Frank Sinatra, Charlie Chaplin and Monroe's ex-husband Arthur Miller. The bureau has also been involved in numerous investigations about crimes against celebrities, including threats against Elizabeth Taylor, an extortion case involving Clark Gable and more recently, trying to solve who killed rapper Notorious B.I.G.

The AP had sought the removal of redactions from Monroe's FBI files earlier this year as part of a series of stories on the 50th anniversary of Monroe's death. The FBI had reported that it had transferred the files to a National Archives facility in Maryland, but archivists said the documents had not been received. A few months after requesting details on the transfer, the FBI released an updated version of the files that eliminate dozens of redactions.

For years, the files have intrigued investigators, biographers and those who don't believe Monroe's death at her Los Angeles area home was a suicide.

A 1982 investigation by the Los Angeles District Attorney's Office found no evidence of foul play after reviewing all available investigative records, but noted that the FBI files were "heavily censored."

That characterization intrigued the man who performed Monroe's autopsy, Dr. Thomas Noguchi. While the DA investigation concluded he conducted a thorough autopsy, Noguchi has conceded that no one will likely ever know all the details of Monroe's death. The FBI files and confidential interviews conducted with the actress' friends that have never been made public might help, he wrote in his 1983 memoir "Coroner."

"On the basis of my own involvement in the case, beginning with the autopsy, I would call Monroe's suicide 'very probable,'" Noguchi wrote. "But I also believe that until the complete FBI files are made public and the notes and interviews of the suicide panel released, controversy will continue to swirl around her death."

Monroe's file begins in 1955 and mostly focuses on her travels and associations, searching for signs of leftist views and possible ties to communism. One entry, which previously had been almost completely redacted, concerned intelligence that Monroe and other entertainers sought visas to visit Russia that year.

The file continues up until the months before her death, and also includes several news stories and references to Norman Mailer's biography of the actress, which focused on questions about whether Monroe was killed by the government.

For all the focus on Monroe's closeness to suspected communists, the bureau never found any proof she was a member of the party.

"Subject's views are very positively and concisely leftist; however, if she is being actively used by the Communist Party, it is not general knowledge among those working with the movement in Los Angeles," a July 1962 entry in Monroe's file states.

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Anthony McCartney can be reached at http://twitter.com/mccartneyAP

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Wall Street heads for longest losing streak in three months

NEW YORK (Reuters) - Stocks fell on Friday, putting the S&P 500 on track for a fifth straight decline, as President Barack Obama and top congressional leaders were set to make a last-ditch attempt to steer the country away from severe fiscal austerity next year.

Obama and lawmakers from both political parties will meet at the White House on Friday afternoon for talks in an effort to agree on a solution before a New Year's deadline to keep large tax hikes and spending cuts from taking effect. Economists say that combination of automatic higher taxes and lower government spending - known as the "fiscal cliff" - could push the U.S. economy into a recession.

Trading was volatile and stocks rebounded from their session lows after unconfirmed reports that President Obama was about to offer a new plan to Republicans.

But investors' pessimism about achieving anything more than a stop-gap deal by the deadline was reflected in the benchmark S&P 500's drop of 1.3 percent so far this week. The broad index was on pace for its worst weekly performance since mid-November.

A five-day decline would be the S&P 500's longest losing streak in three months.

"There's a pretty good chance that we won't have something in hand by year-end," said Jonathan Golub, chief U.S. equity strategist at UBS, in New York. "It should be pretty obvious that that is now the majority case."

Golub, however, said investors were still counting on a deal that would avoid most of the tax hikes and spending cuts next year even if it does come after the deadline.

"It is widely believed that we're going to get a deal," he said. "We are not going to go over the cliff to the extent that we have a huge economic contraction."

With time running short, members of Congress may attempt to pass a retroactive fix to neutralize tax increases and spending cuts soon after the automatic fiscal policies come into effect on January 1.

The Dow Jones industrial average fell 65.65 points, or 0.50 percent, to 13,030.66. The Standard & Poor's 500 Index dropped 6.03 points, or 0.43 percent, to 1,412.07. The Nasdaq Composite Index slipped 7.29 points, or 0.24 percent, to 2,978.62.

"It doesn't matter which side wins, but at this point, nobody wants to play a game where there aren't rules," said Joe Costigan, director of equity research at Bryn Mawr Trust, in Bryn Mawr, Pennsylvania.

"So everybody is talking about what the prospects are for changes in the rules. But at the end of the day, nothing is happening."

Highlighting Wall Street's sensitivity to developments in Washington, stocks tumbled slightly more than 1 percent on Thursday after Senate Majority Leader Harry Reid warned that a deal was unlikely before the deadline. But late in the day, the three major U.S. stock indexes rebounded and ended down just 0.1 percent after the U.S. House of Representatives said it would hold an unusual Sunday session to work on a fiscal solution.

With many investors away for the holiday-shortened week, volume is expected to remain light and that could exacerbate the stock market's swings.

Positive economic data failed to alter the market's downtrend.

The National Association of Realtors said contracts to buy previously owned U.S. homes rose in November to their highest level in 2-1/2 years, while a report from the Institute for Supply Management-Chicago showed business activity in the U.S. Midwest expanded in December.

Barnes & Noble Inc shares rose 6.2 percent to $15.24 after the top U.S. bookstore chain said British publisher Pearson Plc had agreed to make a strategic investment in its Nook Media subsidiary. But Barnes & Noble also said its Nook business will not meet its previous projection for fiscal year 2013.

Shares of magicJack VocalTec Ltd jumped 8.5 percent to $17.67 after the company, which provides VoIP or voice over Internet protocol services, forecast more than $39 million in GAAP revenue and over 70 cents per share in operating income for the fourth quarter. The company also said it has appointed Gerald Vento as president and CEO, effective January 1.

The U.S.-listed shares of Canadian drugmaker Aeterna Zentaris Inc surged 16.1 percent to $2.52 after the company said it had reached an agreement with the U.S. Food and Drug Administration on a special protocol assessment by the FDA for a Phase 3 registration trial in endometrial cancer with AEZS-108 treatment.

(Reporting by Edward Krudy; Editing by Jan Paschal)

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Former White Sox star Carlton Fisk pleads guilty to DUI

Booking photo of Carlton Fisk (Photo from Nex Lenox police / October 23, 2012)

By Steve Schmadeke




Tribune reporter

12:56 p.m. CST, December 27, 2012

Former White Sox catcher Carlton Fisk pleaded guilty today to a misdemeanor DUI charge after mixing alcohol and prescription drugs and driving into a New Lenox farm field.

Fisk received one year of court supervision and must pay court costs of $1,250 -- the standard disposition for 1st-time DUI offenders in Will County, said special prosecutor Dave Neal. 

Fisk's attorney, Stephen White, said in court of his client: "He stepped up to the plate and said, 'I want to accept responsibility for what I did.' I admire that."

White said he believed they had a winnable case.

Fisk will have to undergo a drug and alcohol evaluation as well as counseling, and attend a victim impact panel.

Fisk, who has a Florida driver's license but lives part-time in New Lenox,  was found Oct. 22 passed out inside a pickup truck in a farm field near Gougar and Spencer roads. A bottle of vodka was also found inside the vehicle.

sschmadeke@tribune.com

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Apple CEO's pay package drops 99 percent from 2011

NEW YORK (Reuters) - Tim Cook has finally made it to the top at Apple Inc, but in his first full year as CEO his pay package shrank about 99 percent.

Cook, the successor to the late Steve Jobs, was awarded total compensation of $4.17 million in 2012, down from $378 million in 2011, Apple said in a federal filing on Thursday.

The 2012 compensation package for Cook, who took over as chief executive in August 2011, also seemed a pittance compared with his 2010 pay, which was 14 times higher, when the executive served as chief operating officer.

Jobs, the iconic CEO and co-founder, died in October 2011 of pancreatic cancer.

The maker of the iPhone and iPad noted that Cook will not receive any stock awards for 2012 after he was given about $376.2 million in stock awards the year before. The stock awards vest over many years.

The 2012 package includes a salary of $1.4 million and a nonequity bonus of $2.8 million, according to the filing. Cook's base salary actually increased compared with the $900,000 he earned in 2011.

While Apple's shares are 35 percent higher than when Cook assumed the CEO role, they have fallen more than 27 percent since October when they hit a $700.10 high.

Apple shares were down 0.6 percent at $509.85 on the Nasdaq late on Thursday morning.

(Reporting by Sinead Carew and Liana Baker; editing by Kenneth Barry and Matthew Lewis)

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