The Biz Buzz

The News Tribune Business Team will keep you updated on what's happening in the South Sound and beyond. Check here for news about economic development, aerospace, shopping and much more.

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Contributors

Marce Edwards is the business editor. She has been at The News Tribune for seven years and has written about technology and big businesses in the South Sound including Weyerhaeuser and Russell. Before moving to Tacoma, she worked at The Idaho Statesman in Boise. She is a Northwest native who likes to garden and refuses to use an umbrella. She lives in Tacoma with her husband and two kids.

C.R. Roberts is a Tacoma native. Before joining The News Tribune, he worked as a freelance writer and part-time cowhand on a cattle ranch in Northern Idaho. He writes about small business, personal finance and other business issues.

John Gillie writes about the aerospace and airline industries, commercial development and consumer issues. During his 30-year-tenure at The News Tribune he has covered issues as diverse as the Native American fishing rights disputes, crime and the courts, the wood products industry and energy. He lived in Tacoma with his family for 25 years, but now lives in Kent because his wife heads a five-state non-profit foundation headquartered in Ballard, and it only seemed a sensible compromise to make considering their workplaces are 40 miles apart.

Kelly Kearsley has been a business reporter at The News Tribune since 2005. She covers the Port of Tacoma and international trade. Being born and raised in Spokane she’s used to living in cities with inferiority complexes and, in fact, prefers it. Prior to working at The News Tribune, she spent three years as a reporter for The Bulletin in Bend, Oregon and another year working stints for The Associated Press and Seattle Times. She graduated from Pacific Lutheran University. She lives in Tacoma with her husband and miniature schnauzer.

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Get the most up-to-date news, insights and analysis of Tacoma, Pierce County and South Puget Sound business.
Wednesday, May 28th, 2008
Posted by John Gillie @ 01:26:21 pm

Airlines are announcing ever more sweeping changes daily to cut costs in the face of huge fuel price increases.

American Airlines, which just last week announced a $15 fee on the first checked bag, announced this week it is cutting more flights from its schedule including flights from Chicago to Buenos Aires and from Boston to San Diego.

Meanwhile in Minneapolis, Sun Country Airlines today announced 10 percent pay cuts for managers. That move comes just six weeks after the airline laid off 125 workers.

And Phoenix-based Mesa Airlines said in a court filing that it faces possible bankruptcy if the court allows Delta Airlines to terminate a contract with the regional carrier for flights Mesa operates as DeltaExpress.

Categories: Aerospace, Tourism
Posted by C.R. Roberts @ 12:09:13 pm

The Olympia Brewery is once again for sale. Well, sort of.

Rather than post a set asking price, broker Colliers International in Olympia is asking for proposals for the Tumwater site, which comprises 890,000 square feet.

Schmidt, Pabst, Miller – several beers beyond the Olympia brand have been bottled at this Thurston County brewery, and so has the artesian water itself. The main building was built in 1903, and Troy W. Dana, Colliers senior vice president and managing director, says the site, with its “rich history and economic potential, has a wide variety of possibilities for future development.”

A brewery perhaps. Or maybe another I-5 water park.

Posted by John Gillie @ 09:10:32 am

In a move sure to reignite trans-Atlantic fighting over aircraft manufacturing subsidies, Boeing rival Airbus has told European governments it needs $18.2 billion in launch aid for its new A350XWB airliner.

The A350XWB is the European planemaker's answer to Boeing's popular composite-bodied 787 Dreamliner.

Boeing and Airbus are already in a fight before the European Union over prior subsidies.

Boeing says such launch aid violates agreements between the U.S. and Europe, but Airbus counters that Boeing itself receives illegal subsidies from states and the federal government.

In Europe, launch aid typically takes the form of state-sponsored loans to pay the development costs of new airliners.

Those loans are paid back if the plane is successful. The state aid, however, allows Airbus to take on a risky program without having to satisfy bankers that the gamble will be profitable.

A delicate twist to the new request this time is what the governments will require Airbus to do in return. The European company is already at a financial disadvantage to Boeing because of the relatively high cost of the Euro, and it has embarked on a program to cut costs.

Part of that program is to move production of the A330 Freighter to a new plant in Alabama and production of some A320 airliners to China.

The governments, typically make the launch loans on the premise that their generosity will ensure that high-paying aerospace jobs will remain and grow in Europe.

Categories: Aerospace, Tourism
Posted by C.R. Roberts @ 08:54:31 am

Maybe you’ve got a grocery store, or a cafe. Maybe you own a convenience store. Whatever your business, you may have noticed that energy costs have been going up.

Here’s a way to help them go back down.

Tacoma Power has announced a program called EnergySmart – offering incentives to business owners who want to reduce energy consumption and costs.

The program provides a free energy analysis, plus financial incentives for those who upgrade their existing refrigeration and lighting to use more energy-efficient models. A customized report outlines potential energy savings, rebate amounts, retrofit costs and simple paybacks.

Tacoma Power typically takes responsibility at least 20 percent of the cost for any of the recommended upgrades, and may cover more.

Tacoma Power says that retailers who have participated in this program in other utility service areas have reported energy cost savings of up to $2,000 per month, per store.

All of Tacoma Power’s commercial customers with refrigeration equipment can participate in the EnergySmart program. For more information, visit www.energysmartonline.org or call 800-230-9420.

Categories: General
Posted by John Gillie @ 08:29:32 am

US Airways, the Arizona-based airline that until recently was thinking about a merger with United, is eliminating free in-flight snacks beginning June 1.

The airline won't say how much money this move will save, but with airlines scrambling for new savings and revenues to pay fuel bills, every buck helps.

So, if you can't endure a few hours without something passing through your lips, buy a bag of pretzels, chips or a piece of fruit at the airport before you jump aboard one of US Airways' Sea-Tac flights to Phoenix, Las Vegas, Philadelphia or Charlotte.

Categories: Aerospace, Tourism
Posted by C.R. Roberts @ 08:21:06 am

Would you like a latte with that lesionectomy? A cappuccino with your colonoscopy?

If so, then head for Puyallup next week – when Good Samaritan Hospital opens a Starbucks in the main lobby on June 2.

"We have more than 2,200 employees at Good Samaritan who are anxiously awaiting the opening of Starbucks. This is one of the many new relationships we are creating at Good Samaritan to exceed the expectations of patients and their families at a quality institution," said John Long, Good Samaritan president.”

The new outlet will offer a full range of beverages, baked goods and branded merchandise.

Initial hours will be 6:00 a.m. until 8:00 p.m. Monday through Friday and 8:00 a.m. until 4:00 p.m. Saturday and Sunday.

Categories: Shopping
Posted by C.R. Roberts @ 07:36:21 am

Looking for that Karen Kane stretch tank at $40, or the Evian Facial Water Spray at $16.00, or maybe that Martin Dingman alligator credit card case at $195.00? If you’re going shopping at Nordstrom, now you do your buying online and pick up your merchandise at the store.

The company’s pilot project, announced last week and aptly called “Buy Online, Pick-Up In-Store,” currently features 5,669 items – from dresses to scents and shorts to shirts, with a lot in between.

“We’ve heard from our customers for some time now that they want this option and we’re excited to be able to provide it for them,” said Erik Nordstrom, president of stores, in announcing the program.

Here’s how it works. You select your item at www.nordstrom.com, pay with a credit card and then retrieve your purchase at a Nordstrom store. As an alternative, the retailer also offers shipping, should you not wish to make the trip.

Categories: Shopping
Posted by John Gillie @ 07:28:06 am

Despite ongoing airline misery, higher fares and nationwide air schedule cutbacks, Sea-Tac Airport's passenger numbers remained in the positive column in April.

Those figures show that airline passenger traffic there grew by 3.47 percent, a growth rate down from prior months but still in the plus range.

For the year, passenger traffic has grown a healthy 8.27 percent at Sea-Tac.

Further statistical breakdowns show that the airport's dominant carrier, homegrown Alaska Air Group, parent company of Alaska Airlines and Horizon Air, collectively owns more than half of Sea-Tac traffic, 50.71 percent.

The airport's 10 largest carriers based on passenger loads and their market shares are:

1. Alaska 35.12%
2. Horizon 15.59%
3. Southwest 9.39%
4. United 7.55%
5. Northwest 6.49%
6. Delta 4.91%
7. American 4.59%
8. Continental 3.93%
9. US Airways 3.08%
10. Hawaiian 1.67%

The big movers on the list were Southwest, which passed United to become the #3 airline at Sea-Tac; United, whose traffic fell 12.7 percent at the airport. and Delta, which passed American, which lost 8.86 percent of its traffic compared with 2007's first four months.

Categories: Aerospace