The South Bend Tribune from South Bend, Indiana • 16

FRIDAY, MAY 3 1, 2002 SOUTH DEND TRIBUNE BRIEFCase STAFF AND WIRE REPORTS Airlines promoting passenger comfort Airport hassles prompt industry to offer perks By BRAD FOSS Associated Press Writer instead of chicken thighs on trans-Atlantic flights and that breakfast will be upgraded from a cold croissant to a warm bagel with cream cheese. The only catch behind these and other modest culinary improvements is that Continental will subsidize the changes by charging $4 for each alcoholic beverage served on trans-Atlantic flights, an amenity that used to be free. Mann said Continentals version of a sin tax could backfire, though, if passengers dont actually believe the food tastes better There are jdsks associated with a couple of these paigns, he said. American Airlines, for instance, has hinted to Wall Street that it might have to reinstall the seats it took out to create more legroom, and that would effectively be a waste of advertising Jars, Mann said. The Fort Worth, Texas, -based carrier denied having second thoughts about eliminating seats to make its jets roomier See COMFORTPage B7 a way for rivals to distinguish themselves from one another do not overshadow the fact that carriers remain much more intensely focused on cutting costs.

With passenger traffic down 12 percent in April compared with last year security and insurance costs on the rise and profit margins thinned because of reduced airfares, major U.S. carriers have canceled meal service on short domestic routes, removed pillows and blankets from the cabin and shut down airport lounges. Taken together, though, these recent announcements of extra amenities represent a subtle yet significant shift in marketing strategies, said Robert Maim, an airline consultant at R.W Mann Co. in Port Washington, N.Y Its a return to marketing 101," said Mann. The airlines are back to the product differentiation factors to take the edge off this perception that the airports should be avoided.

-Houston-based Continental last week announced It would begin serving chicken breasts to relax a little, with placards in the back of seats that show how to do simple yoga postures without standing up. Continental Airlines is serving higher quality food to coach passengers on trans-Atlantic flights. And American Airlines is spending millions of dollars on TV and print ads to ballyhoo several inches of legroom added throughout every plane. Theyre trying to get everybody in the mood again, Gloribel Rodriguez, 18, and a frequent flier, said on a recent morning at New Yorks La Guardia Airport. Rodriguez, who swayed back and forth ina rocking chair near alarge window with views of incoming and outgoing planes, said its only natural for airlines to pay more attention to passenger comfort after months of focusing almost exclusively on security They know they need to satisfy the customer, said Rodriguez, who flies to Puerto Rico once a month to visit family If were not happy they have no money These minor service changes, while seen as NEW YORK bad news sends stocks slightly lower Another spate of bad news this time, forecasts of disappointing retail sales and a downgrade of debt by Moodys Investors Service prompted investors to play it safe yet again Thursday, leaving the stock market narrowly mixed.

Blue chips fell for a fourth straight session. The Dow closed Thursday down 11.35, or 0.1 percent, at 9,911.69, having lost 304.39 in the past four sessions. The markets broader indicators were mixed. The Nasdaq composite index rose 7.53, or 0.5 percent, to 1,631.92, a minor comeback from a three-session loss of 73.24. The Standard Poors 500 index declined 3.00, or 0.3 percent, to 1,064.66.

The has fallen 32.42 in the past four sessions. TROY, MICH. NEW YORK The airline industry, stung by the terrorist attacks and a downturn in business travel, spent most of the past year trying to convince Americans that flying is safe and affordable. Now, as business slowly recovers, carriers are dangling small perks to reacquaint the public with the idea that travel can also be enjoyable. JetBlue Airways is encouraging passengers Beer market Myorait Toyota tops quality study By ED GARSTEN Associated Press Writer tj 111 JL DETROIT Toyota Motor Corp.

claimed the top spot in the annual J.D. Power and Associates initial quality study released Thursday, while General Motors Corp. scored the highest among U.S. automakers and Ford Motor Co. rebounded from a disappointing showing a year ago.

Toyota and its Lexus luxury line led nine of thel6vehiclecategoriesin the study Toyota trucks had the best quality in all but the full-size SUV category which was led by Ford. The Ford Thunderbird also was rated toe best entry luxury car an unusual standing in toe first year of a vehicles production. The Thunderbird was also Fords highest-rated vehicle. Ford needs to continue at a faster pace than toe industry to make up lost ground, said Brian Walters, director of product research at J.D. Power Ford, including its Mazda unit, topped three segments.

GM had four top-ranked models. The Chevrolet Malibu made the biggest qualify gain in the past year, followed by toe Buick Century Chevrolet Corvette and toe Lexus GS sedan Korean automakers Kia Motors America Inc. and Hyundai Motor America Inc. showed the most improvement in the past year with gains of 21 and 19 percent respectively Toyota and GM showed the biggest gains in quality over the past five years. The study is based on responses from nearly 65,000 new vehicle buyers and lessees after 90 days of ownership regarding 135 potential problems.

About three-quarters of problems can be root-caused to design and engineering. Only about a quarter of the problems are related to actual manufacturing, which is why you have to start at the design stage to improve quality," Walters said. jy APPhotyFWRICE Graham Mackay, chief executive of South African Breweries, left, with John D. Bowlin, chief executive of Miller Brewing toast the purchase of Miller by South African brewers. South African company to pay $3.6 billion for Miller Brewing By BRUCE STANLEY Associated Press Writer Sunday last day for five area Kniarts Five Michiana Kmart stores will close this Sunday said Steve Pagnani, Kmart Corp.

spokesman. Stores located at 4850 Western Ave. in South Bend; 3501 South Main St in Elkhart; 2707 South 11th St. in Niles; 1950 Pipestone Road, in Benton Harbor; and 1320 Broadway St. in Three Rivers are part of 284 Kmart locations closing nationwide this summer.

These stores will continue liquidation sales offering merchandise up to 90 percent off through Sunday WASHINGTON Drop seen in claims for unemployment For a second straight week, fewer people filed new claims for unemployment insurance, but the level of claims was still high in an indication that the job market remains sluggish. Claims dropped by a seasonally adjusted 12,000 to 410,000 the lowest level since the middle of March for the week ending May 25, the Labor Department reported Thursday Claims had fallen by 3,000 in the prior week. ATLANTA Firms buying trucks that avoid new rules Some trucking fleet operators are rushing to buy current truck models to avoid a new generation of less-polluting diesel engines that take over the market in October Trucking companies complain that the new engines mandated by federal rules to reduce nitrogen oxide emissions will cost more, weigh more, use more fuel and likely require more maintenance. Nitrogen oxides help produce ozone and smog and can aggravate asthma and cause respiratory problems. Heavy diesel trucks pump about 2.6 million tons of oxides and other pollutants into the air each year INDIANAPOLIS Three new cases bvCiVIns drugs Investigators tracking apparent tampering of Eli Lilly and Co.s anti-psychotic drug Zyprexa have learned of three more cases, two of them in states where no previous reports had emerged.

The three new cases appear to have been discovered during the same time frame as three initial cases, which included one in January and two in late April, Mami Lemons, a spokeswoman for Indianapolis-based Lilly said Thursday In all six cases, white tablets labeled aspirin were found in bottles that were supposed to contain Zyprexa pills. Tests indicated the tablets are generic aspirin, which is not among Lillys products. This is a deal that reshapes the top tier of the global brewing industry, SAB chief executive Graham Mackay said. SAB agreed to assume $2 billion in Miller debt, raising the tions total value to $5.6 billion. Millers parent company, Philip Morris Cos.

of New York, would keep a 36 percent stake in SAB-Miller and intends to remain a longterm shareholder Miller spokesman Michael Brophy said toe buyout would not lead to any job cuts at Millers seven U.S. breweries. SAB expects to complete toe acquisition in July pending shareholder and regulatory approval. SABs shares slipped 0.9 percent to close at 571 pence ($8.34) on the London Stock Exchange. Philip Morris shares rose 74 cents to $56.75 in afternoon trading on the New York Stock Exchange.

The Miller buyout marks a major step in SABs strategy of expanding largely through acquisitions to become a top player in toe consolidating global beer business. Miller was founded in 1855 in Milwaukee, a city renowned for its breweries. SAB, though it may not be well-known in the United States, has brands that dominate Africa and are among the market leaders in China, Russia and much of Eastern Europe. SAB exports Pilsner Urquell, a Czech lager, to the United States. U.S.

sales of Pilsner Urquell sur passed 2.6 million gallons in 2001, about double toe previous years level but still less than half a percentage point of all beer sold in toe United States. Mackay said he hopes SABMiller can increase these sales by selling Pilsner Urquell through Millers distribution channels. The company's other major brands include Castle in southern Africa, Tyskie in Poland, Zolotaya Bochka in Russia and Zero Clock in China. SAB ranks fourth in terms of beer volumes sold, behind St Louis-based Anheuser-Busch, Belgiums Interbrew and Heineken NV of toe Netherlands. Miller ranks seventh in toe world.

See BUYOUTPage B7 LONDON Building on its strength in Asia and Africa, South African Breweries PLC splashed into toe U.S. beer market Thursday by announcing an agreement to buy Miller Brewing Co. for $3.6 billion in stock. The buyout would lift SAB, the worlds fourth-largest brewer by volume, into second place, and make it a much tougher competitor for No. 1 Anheuser-Busch Cos.

The new company to be called SAB-Miller PLC, would also likely boost exports of Miller brands outside the United States. r.TAIIIlET DASifETCAROL ELLIOTT Home Depot getting ready to roll into the Michiana area The big orange store is coming to a town near you. The Home Depot store located at the corner of Interstate 94 and Pipestone Road in Benton Harbor is scheduled to open at toe end of June. Atlanta-based Home Depot is the nations largest home-improvement retailer ith 2001 annual sales of $53.6 billion. It is something of a newcomer to the area.

It has six stores in Indianapolis, two in Fort Wayne, one each in Hobart and Schererville, and lots in Michigan, according to Tom Gray spokesman for Home Depot But this is the first in Michiana. Gray said the South Bend area is a place were looking at but toe company has no firm plans at this time. Home Depot is a megastore like Lowe's or Menards buili on the scale of an airplane hangar. The Benton Harbor location is a slightly downsized version, measuring 95.000 square feet with a 18.000 square foot garden center, which compares to 140.000 square feet for a typical store. Product offerings run between 40,000 and 50,000 different kinds of building materials, home improvement supplies and lawn and garden products.

Thats big. Especially considering Home Depot and other chains are starting to build smaller stores in some locations, recognizing that consumers place a value on time wasted wandering toe aisles. Ever try to find a book of matches in one of these places? Carol Phone In toe big stores like Benton Harbor; Gray said a systematic sales approach cuts search time. As soon as a customer walks through toe door; a greeter finds out what hes looking for and points out toe right section. The sales associates in each section are charged with finding the item, not just waving in the general direction.

Hiring preferences are given to people with expertise in home improvement areas, such as landscaping or electrical work. When they cant hire experts, said Gray they train them. All employment positions are currently filled for the Benton Harbor store, according to Gray The company hired about 110 people. Elliott (574) started Contessa Wine Cellars by purchasing 25 acres of property at 3235 Friday Road in the rolling hills of Coloma. Peterson built a square-foot Chalet-style building.

The upper level is a tasting room, featuring a 25-foot-long handcarved bat a couch and a fireplace. Petersons idea is to offer casual, get-together surroundings for customers to sit and sip and learn about wines. Its a nice experience for people with an educational atmosphere, said Peterson. The winery is open seven days a week from noon to 5 p.m, or by appointment Theres no charge for tasting wines. Peterson plans to offer food in toe future.

See ELUOTTPage B7 most of them locaL Wages are above minimum, said Gray Part-time employees are eligible for health benefits and participation in stock plans. The Home Depot operates 1.385 stores in 49 states. Hew winery opens There comes a time for a son to leave home. In this case, toe son was Tony Peterson, the Son part of Peterson Son Winery in Kalamazoo. Petersons father; Duane, has owned and operated Peterson Son Winery in Kalamazoo since 1983.

Duane Peterson didnt want to grow his business, but Tony, with a growing family didnt have much choice. He decided his only option was to start up his own winery In April 2000, Tony Peterson 235-6346 celliottai sbtinfo.com.