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As if high fuel prices aren’t enough, airlines and passengers are getting pinched by rising taxes as the U.S. government demands a bigger piece of the pie.

About 20% of the price of a $300 domestic round-trip ticket goes to taxes and fees, according to the Air Transport Association, compared with 13% in 1992 and 7% in 1972.

"When the government decides to throw another tax on passengers, that is greatly hurting an already financially hurting industry," said ATA spokesman David Castelveter. "We’ve long said that we are one of the most overtaxed industries, and we now are dealing with record-level fuel increases. The airline industry is in a worse financial situation than it was on 9/11."

Rick Seaney, chief executive of online ticket vendor Farecompare.com, estimated that the U.S. government reaped $40 billion in airline ticket taxes in 2007.

Seaney broke down the price of a $300 domestic round-trip flight:

• $146.15: Roundtrip airfare
• $93.02: Fuel surcharge
• $18.00: Passenger facility charge toward airport improvements
• $14.00: Federal flight segment tax to Federal Aviation Administration projects
• $10.00: Sept. 11 security fee to the Transportation Security Administration
• $11.85: Federal sales tax (7.5%) on airfare
• $ 6.98: Federal sales tax (7.5%) on fuel surcharge.

Seaney said airlines also pay a 4.4% federal excise tax on jet fuel, and an additional sales tax on fuel that varies depending on the city and state of purchase. Those costs are factored into the price of airfare.

"Where is the money going, and why isn’t air travel any easier after collecting billions and billions of dollars?" he asked, noting that passengers are still dealing with cancellations and delays.

Chris White, a spokesman for the TSA, said that Sept. 11 fees are used to fund security for airports and airlines. Brian Turmail, a spokesman for the Department of Transportation, said the federal flight segment tax is used to fund the air traffic control system, while the passenger facility charge is used for airport maintenance.

On top of taxes, the industry is dealing with soaring fuel prices payday loan quick payday. Fuel cost is now 36.5% of the price of a ticket, compared to 15% in 2000, according to the ATA, which estimates that jet fuel costs will rise to a record-breaking $59.5 billion in 2008, compared with $41.2 billion in 2007.

Seaney of Farecompare.com said if fuel prices continue to rise, and the government continues to add fees, "the combination of the two could be lethal."

"The last thing the government needs to do is pile on [more fees]," he said, suggesting that legislators suspend some or all of the fees until fuel costs drop dramatically.

This would not be unprecedented, said Seaney, since the government lifted the Sept. 11 security fee during the summer of 2003 as part of the Emergency Wartime Supplemental Appropriations Act.

The funding is set by the FAA reauthorization bill, which passes through Congress every five years and makes it possible for the DOT to operate the FAA, according to Turmail. The Senate failed to pass the FAA reauthorization bill on May 6, and its fate is still to be decided in Congress.

Turmail said the current bill proposes a shift in the federal flight segment tax from passengers to the airlines, as well as to corporate and private jets, to "put less of a burden on air travelers." The airlines could pass that tax onto passengers through higher airfares, he said, but that depends on whether they can successfully raise ticket prices.

The most recent widespread fare increase occurred May 8, when Delta Air Lines (DAL, Fortune 500), United Airlines (UAL) and American Airlines (AMR, Fortune 500) added $20 to the price of a round-trip ticket. ATA president James May said in a Tuesday press conference, that another fare increase during the summer is "inevitable," and rising fuel prices are to blame.

May said fewer people will travel this summer, partly because of the poor economy. But for this reason, some analysts believe airline prices have already neared their peak.

"They will try to raise fares, but the question will be whether they can succeed in doing so in a weak economy," said Phillip Baggaley, a fixed income analyst for Standard & Poor’s. 

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A Hawaiian Airlines flight from Seattle bound for Maui turned back to the airport Friday because of a loose panel on one of the wings, the second incident involving the Honolulu-based airline in a week.

Hawaiian Airlines Flight 29 turned back to Sea-Tac Airport shortly after its 10:35 a.m. departure.

"We had a flight turn around and come back because of a loose panel on one of the wings," Hawaiian spokesman Keoni Wagner confirmed. "Shortly after departure they noticed a noise or a vibration coming from one of the wings so they turned the plane around."

The panel was on the trailing edge of the wing of the Boeing 767-300, and not a structural piece, he said payday loans creditscore.

The plane was being repaired at Sea-Tac and was scheduled to depart for Kahului at 11:45 p.m. Friday, Seattle time.

The 245 passengers were offered hotel accommodations and meals, Wagner said.

On Wednesday, a Hawaiian Airlines 767-300 that took off from Honolulu bound for Portland, Ore., had to turn around mid-flight after losing power in one of its engines. The plane was rerouted to Kahului, Maui, where the engine was repaired, Wagner said. That plane is scheduled to go back into service Saturday morning, he said.

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Honolulu-based wireless company Mobi PCS will open a new store Thursday at The Avenue Shops at Safeway Center on Oahu.

The company's nearby Waialae Avenue store, which opened last September, will be taken over by a separate company called Hoku Wireless.

Mobi employees of the former location will transfer to the new Kapahulu store http://paydayloans-on.com free credit report.com.

The company, which bills itself as the only locally operated wireless network in Hawaii, launched service in January 2006.

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Visitor arrivals to Hawaii will decline by 3 percent this year, twice as much as previously projected, in part because of the shutdown of Aloha Airlines and ATA, according to the quarterly economic report released by the state on Monday.

The quarterly economic report from the Hawaii Department of Business, Economic Development & Tourism expects moderate to slower growth for Hawaii this year, and in 2009.

"We believe that our economy will adjust to recent economic events and that our fundamental economic foundation remains strong," director Theodore E. Liu said in a statement.

DBEDT had previously forecast visitor arrivals to decline by 1.4 percent, but now expects that figure to be 3 percent. The agency forecasts no growth in 2009, followed by 1.4 percent growth in 2010 and 1.7 percent growth in 2011. The shutdown of the two airlines, coupled with the departure of two cruise ships, were cited by the department as the primary causes for the decline in visitor numbers.

Visitor days, which are the number of arrivals times the length of stay, are forecast to drop 2.4 percent this year, after a 1.5 percent decline in 2007, and are expected to remain flat in 2009 before starting to recover in 2010 and 2011 payday loan pay day loan.

Visitor expenditures are projected to remain flat this year, with less then 1 percent growth, before rebounding in 2009 with 3.6 percent growth, followed by 4.4 percent growth in 2010 and 4.7 percent growth in 2011.

The report forecasts moderate growth over the next couple of years for personal income, total wage and salary jobs, and state gross domestic product, although the projected rates of growth have decreased from the previous forecast.

The report cut the forecast for real personal income growth in half, to 0.8 percent, down from 1.6 percent. Income is forecast to grow 1.1 percent in 2009, which is also a 0.8 percent downward revision from the previous forecast.

The forecast for job growth this year was lowered by 1 percentage point, downward to 0.4 percent, from 1.4 percent, while the forecast for 2009 was revised downward to 0.8 percent from 1.3 percent in the previous forecast.

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Chiquita Brands International Inc. CEO Fernando Aguirre, speaking Sunday on the CBS news show "60 Minutes," said the company made payments to Colombian terrorist groups to save the lives of its employees.

Aguirre, speaking to "60 Minutes" host Steve Kroft, insisted the Cincinnati-based company had no choice but to make the payments to guerilla groups that controlled the areas where it had banana operations. After Aguirre became CEO, Chiquita ended the payments and sold off its Colombian subsidiary.

A guerilla leader, now in prison, who was interviewed by Kroft for the show, said that other companies also made payments, and named U.S. fruit companies Dole and Del Monte. Both companies denied the accusations, according to "60 Minutes."

Chiquita is still feeling the repercussions, including several lawsuits filed by families of people killed by the guerillas, who claim the company is liable because its money helped fund the guerilla groups fast cash now 24 hour payday advances.

Chiquita cooperated in a U.S. Justice Department probe and agreed to pay a $25 million fine for its actions. The Colombian government is still investigating the matter, and has threatened to extradite Chiquita executives, and Congressman William Delahunt, D.-Mass., is conducting a probe as well.

Chiquita (NYSE: CQB) is a marketer and distributor of fresh and packaged produce in Europe and North America.

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The National Basketball Association and Cal Expo have agreed to work together "to evaluate the feasibility of developing a new and integrated fairgrounds, sports, entertainment and mixed-use complex" for the Sacramento Kings and other uses that could cost as much as $1 billion.

A "letter of understanding" released Friday describes a joint effort toward a 17,000- to 20,000-seat arena for the Kings and other attractions on the Cal Expo grounds north of the American River. It would be part of a proposed broader project that would "provide for updated and new state-of-the-art State Fair facilities for California residents to enjoy" and include retail and office space.

In the next six months, "both parties will work together to formulate a Request for Proposal (RFP) for the development of a world class entertainment and exposition destination that will set a new standard for green commerce and sustainability," NBA commissioner David Stern and former Gov. Pete Wilson, who negotiated on behalf of Cal Expo, said in a joint statement. The NBA has "agreed to take on the lion's share of (the costs of) looking at the next step," said Sean Walsh, a spokesman for Wilson.

"Cal Expo and the NBA are realistic about the challenges facing the California and Sacramento economies, and agree that a joint development of the Cal Expo site provides a compelling and realistic opportunity to replace a deteriorating arena and Cal Expo infrastructure while maintaining the rich traditions and feel embodied by the State Fair," the statement said.

The agreement, which could be considered by the Cal Expo board May 21, calls for the project to be "redeveloped and constructed in an environmentally-sensitive manner that will provide new jobs and incremental tax revenue for the State of California and the City and County of Sacramento." The joint statement specifically cites Gov. Arnold Schwarzenegger's emphasis on public-private partnerships to advance projects in the public interest, and stressed the commitment "to a project that can be developed and delivered without the need for new taxes."

A developer-financed arena?

However, it did not address the source of funds for the project; Walsh estimated the cost for the ambitious project at $500 million to $1 billion. Past discussions of financing for an arena at Cal Expo have centered on a private developer as the major source of cash, and that's still the working model that the parties have in mind http://us-no-fax-payday-loans.com bad credit payday loans.

It's unclear how much it will cost to evaluate the feasibility of the arena and fairgrounds development, he said, and no cost limits have been placed on the work.

The Maloof family, which owns Arco Arena and the Sacramento Kings and Monarchs basketball teams, will be briefed next week by NBA officials. "We are supportive and appreciative of the work the Commissioner and the NBA have done on this issue," said Donna Lucas, a spokeswoman for the Maloofs, in an e-mailed statement. "We look forward to being briefed on the Letter of Understanding and learning more about what lies ahead. We are optimistic about the process and encouraged as it continues to move forward."

While the economic downturn could make developing the site challenging, Cal Expo and NBA officials saw no reason to delay. "This could be a decades-long project" if it is developed in phases, Walsh said, and the economy could be vibrant again when the arena is built.

Ideally, a developer would be chosen within six months for the project through the request-for-proposal process, he said. Given the massive scale of the development, more than one developer may combine efforts and financial resources, or participate in different phases of the project. Cal Expo's ability to issue bonds that could be used to finance the project makes them an attractive partner in the project, Walsh said.

Mayor Heather Fargo applauded Cal Expo and the NBA working together on a possible mixed-use sports center, but she is concerned about the site, especially during the late-day commute.

"The location isn't my favorite. It's one of the most congested areas," Fargo said late Friday of the Cal Expo site. She would prefer a sports arena in The Railyards project in downtown Sacramento.

Fargo was aware of discussions between Cal Expo and the NBA, but she was not part of the negotiations.

"I didn't try to insert myself in the process," Fargo said. "I'll see what they can work out. (The letter of understanding) is a good step."

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In what is the largest settlement to date over the gasoline additive MTBE, Chevron Corp. and dozens of other oil companies agreed to pay $423 million to settle 59 separate cases in 17 states that were brought by 160 water providers and 340 individuals.

Plaintiffs in a 60th case are seeking to dismiss their claims against Chevron and the other oil companies.

The settlement calls for the companies to pay for cleanup costs for up to 30 years. The suits settled claims of groundwater contamination from MTBE, or methyl tertiary butyl ether, an additive oil companies and refiners began using in the late 1970s to raise the octane of gas and lower exhaust emissions.

Amendments to the Clean Air Act required oil companies to use the additive, especially in colder winter weather. The chemical compound, which has polluted swaths of groundwater after leaking from storage tanks, was found to cause cancer in rats and mice, but data on human exposure is too limited to conclusively call it a human carcinogen, according to the Environmental Protection Agency. California and New York are among 23 states the have banned the additive.

The oil companies maintain they are not liable for the damages alleged by the plaintiffs, but decided to settle in part to avoid incurring further costs to continue the litigation, "as well as the desire to avoid the uncertainty of trial," the settlement memo stated paydayloan faxless payday loans.

The settlement terms were submitted to the U.S. District Court in the Southern District of New York Wednesday for approval. Individual company contributions and the formula that determined those contributions are confidential, according to the settlement memo.

The settling defendants include several companies: BP, Chevron, ConocoPhillips, Tosco Corp., Shell Oil Co., Ultamar Inc., Valero Energy Corp., Hess Corp. ExxonMobil, the largest oil company in the United States, was not a party to the settlement, according to a report in Thursday's Wall Street Journal.

Chevron is still litigating 29 other MTBE cases that were not part to the settlement, according to Chevron's quarterly report filed Thursday with the Securities and Exchange Commission.

mscanlon@bizjournals.com

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Trial lawyers in the state and a group proposing to severely restrict the ability of plaintiffs to bring contingency fee civil lawsuits have agreed to withdraw competing ballot issues aimed for the November ballot.

John Sadwith, executive director of the Colorado Trial Lawyer's Association (CTLA) said the decision was made late Tuesday after continuing talks with the group promoting the restrictions on how much lawyers could collect in successful civil actions.

"We didn't think it was the best interests of working people in the state" to go forward with gathering signatures and putting the measures on the November ballot, Sadwith said.

Mark Hillman, a former state lawmaker and acting treasurer for the state, represented a group from Colorado Springs that brought the original ballot measure restricting contingency fees cash advance loan cash advance now.

The measure triggered a response from the trial bar that included nine separate counter measures. One would have capped compensation by CEOs, another would revoke licenses of doctors involved in multiple malpractice cases and still another altered what real estate agents could collect in commissions from sales. Others targeted homebuilders accused of construction defects and another tried to guarantee in law the right of a jury trial in civil lawsuits.

In all, nine measures from the trial lawyers targeted various sectors of the economy with new legal requirements. One measure would have subjected federal farm subsidy payments to state income taxes.

Hillman is a wheat farmer from Burlington.

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Online advertising company LookSmart Ltd. cut its first quarter loss to $488,000 from a loss of $3.4 million in the same quarter a year ago.

The San Francisco company (NASDAQ: LOOK) brought in revenue of $17.5 million during the quarter ended March, up from revenue of $11.9 million in the first quarter a year ago.

Ted West, LookSmart’s president and CEO, said the company "made considerable progress during the first quarter."

Brian Gibson is the company’s acting chief financial officer easy payday loan no fax payday advance.

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Yahoo Inc. stock surged more than 8 percent Friday after media reports that talks aimed at an amicable deal with Microsoft Corp. are ramping up.

The Wall Street Journal reported that negotiations are taking place between Sunnyvale-based Yahoo (NASDAQ:YHOO) and Redmond, Wash.-based Microsoft (NASDAQ:MSFT) and that Microsoft may be willing to offer as much as $33 a share.

On Thursday, Microsoft CEO Steve Ballmer told employees that the company might be willing to negotiate a higher price than its earlier offer of $31 a share credit report no fax payday loans.

Yahoo rejected the earlier $44.6 billion offer, saying it undervalues the company.

Yahoo stock went as high as $29.73 Friday before closing the day at $28.67.

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