Pittsburgh Post-Gazette from Pittsburgh, Pennsylvania • Page 45

D-7 Pittsburgh Post-Gazette: Wednesday, June 8, 1994 BUSINESS Flexible flying After losing out in Baltimore, WPTT owner seeks new stations Airlines trimming services and fares THE PLAYERS Eddie Edwards WPTT Pittsburgh Sinclair MEVS DRIEFS Nasdaq given greater power to list, delist The National Association of Securities Dealers yesterday said the Securities and Exchange Commission approved rules proposed by the exchange to strengthen its authority to prevent listing some firms on the Nasdaq market. Nasdaq spokesman James Spell-man said the exchange sought the rule change "basically as a fraud protection device, but also to underscore the integrity of our market." The Nasdaq said the rules allow it to suspend a listing based on any event, condition or circumstance it determines makes the initial or continued listing of a security inadvisable or unwarranted. Candy shift considered The Pittsburgh owner of Wayne Candies is considering shifting at least some production from Fort Wayne, to its Pittsburgh plant or vice versa. Jack Peluse, vice president of operations for the candy division of Pittsburgh Food Beverage confirmed that he had discussed both scenarios with economic development officials in Fort Wayne and Allegheny County. Wayne Candies makes Bun candy bars.

Peluse said Pittsburgh Food Beverage has considered moving some production of Ultra Slim Fast bars to Fort Wayne. Consumer credit soars Consumer credit soared $8.9 billion in April, the biggest jump in more than nine years and the llth straight monthly increase. Credit card borrowing set a record by increasing nearly $5 billion, to $293.8 billion at a seasonally adjusted annual rate, the Federal Reserve said. USSKobe plans caster USSKobe Steel a joint venture between USX Corp. and Kobe not prohibited by either commission rule or policy, as long as the license ee retains ultimate control of station's financial, personnel anjK; programming decisions," the noted.

Its ruling, however, came too for Edwards. Following the FCC ruling, SuK; clair said it was concluding the deal; jl; which it valued at $181 without Edwards. According to a company ment Sinclair is buying Fox affiH-' ates WCGV and WTTO, in MilwatK5 kee and Birmingham, from i ABRY. It also is acquiring program-; ming rights to WNUV in Baltimore and WVTV in Milwaukee. According to a company state-1 ment Sinclair is buying Fox WCGV in Milwaukee WTTO in Birmingham, from ABRY.

It also is acquiring programming rights to WNUV in Baltimore and WVTV in Milwaukee. The acquisitions make Sinclair a powerful force in broadcasting, with the ability to wield great influence. over non-affiliate program buying in five markets (Baltimore, burgh, Milwaukee, Columbus, Ohio and Birmingham) ranked 17th tQ 51st nationally. Although Sincair and ABRY were, able to salvage their deal, like wards they remain bitter towards Scripps Howard. "They used delaying tactics to, thwart a perfectly responsible 4 come," says Andrew Banks, manag-, ing partner of ABRY Communications.

"The FCC found the entire struc-; ture of Eddie Edwards' company; entirely proper," adds Sinclair Pres: ident David Smith. Besides exploring business op: portunities in other markets, Ed- wards says he also is considering a network affiliation for WPTT. Para-' mount and Warner Brothers movie EDWARDS FROM PAGE D-6 Sort their partnership to Baltimore, ut Scripps kept them bottled up for months with the FCC. Edwards finally withdrew his bid in March, before the FCC rejected Scripps claims, citing delays in completing the transaction. Sinclair completed the deal late last month without Edwards, and will manage the Baltimore station for ABRY.

Despite the setback, Edwards says he's determined to become one of the most powerful African-Americans in U.S. broadcasting. Cleared by the FCC, Edwards says he is "aggressively looking" at aaniiring television properties in other markets possibly with a partner other than Sinclair. Edwards, 42, wouldn't say what markets he has targeted for expansion, but he hinted that a "major announcement" may be imminent Edwards has dreamed of being a media mogul ever since he was an eighth-grader in Cleveland. He honed his broadcasting voice on a set of walkie-talkies, then on a tape recorder his mother bought him.

An impromptu visit to a local radio station during his junior year of high school clinched his decision for a career in broadcasting. He came home and told his mother that his goal was to own a radio station by age 40. As it turned out he beat that goal by one year. After on-air stints at radio station WRC in Washington, D.C., and at WAMO and KDKA in Pittsburgh, Edwards moved to Sinclair-owned WPTT-TV in 1978 as a newsman. He had risen to station manager by 1991, the same year Sinclair bought WPGH from Renaissance Communications, a New York-based media company, for $55 million.

WPGH (Channel 53) had a stronger signal than WPTT and was more profitable because of its Fox network affiliation. Because of federal law prohibiting cross-ownership in the same market Sinclair had to find a buyer for WPTT before it could complete its acquisition of WPGH. Edwards was the natural choice for several reasons. He was a longtime station employee. He was loyal to the Smith family.

And he did not have the financial resources to purchase programing that would dent WruH ratings. By Dan Blake The Associated Press NEW YORK Those 14-day advance purchase restrictions, Saturday-night stay requirements and nonrefundable tickets are slipping out of the fine-print conditions that litter the bottom of air fare ads. Led by small new carriers, big established airlines are scrapping restrictions that have forced vacationers to decide on an itinerary months ahead of tune often with only a few days before a sale expires. The trend is part of a broader move toward consistently lower pricing and Spartan service to satisfy air travelers who insist on the cheapest fare. Southwest Airlines' simple and relatively affordable fares have become common in the West Now Continental and USAir are inimick-ing Southwest's strategy on the East Coast and United Airlines is preparing its own version of a low-fare airline.

The fares often are cheap to attract those who might otherwise drive. The unfettered conditions for buying them also give new flexibility to vacationers, who previously had to time their ticket purchases like stock market speculators buy now or bet on a better price later. To attract many bargain-hunting vacationers who typically travel in pairs, many airlines are offering two tickets for the price of one as part of their new fare strategies. Some are even offering refunds, breaching what had been a solid trend in discount airline pricing nonrefundable tickets. Continental Airlines will give full refunds of its Peanuts Fares, while others will charge from $25 to $100 for a refund.

Along with the recovering econo-the snread of cut-rate air fares is exoected to draw 140 million Americans to the air this summer, the Air Transport Association estimates. If the trade group's figure is correct, it would surpass the 139.7 million travelers who new in tne summer of 1992 when air fares were cut in half. The airline industry is still gov erned by a complex web of different fare levels and occasional sales, but more airlines are moving closer to a flat-rate pricing strategy. in some cases, tne new prices result in vacationers paying more. Between its uenver nuD ana tne WBFF -WTTO WTTE -WCGV-WPGH Baltimore Birmingham Columbus, Ohio Milwaukee, Wis.

Pittsburgh Howard Cincinnati Cleveland Detroit Baltimore Tulsa, Okla. West Palm Beach Kansas City, Mo. Phoenix Tampa Scripps WPCO WEWS WXYZ -WMAR KJRH -WPTV-KSHB KNXV -WFTS Sinclair sold WPTT to Edwards for $7 million. Edwards put down a $10 biU, and Sinclair financed the rest. Although the transaction passed FCC muster, it spawned a symbiotic relationship between Sinclair and Edwards.

Desperate for programming and short of funds, Edwards turned to Sinclair to meet his needs. Edwards gets 13 hours of daily programming from Sinclair, which pockets the advertising revenue and pays him a lease fee. Edwards fills the rest of WPTT air time with programming from the Home Shopping Network. Time brokerage arrangements like this are common in the radio industry but Edwards and Sinclair were among the first to transfer the practice to television. Sinclair and Edwards had planned on duplicating their Pittsburgh arrangement in Baltimore and Milwaukee.

According to FCC documents, Edwards would lease 20 hours of the Baltimore station's daily air time to Sinclair. Because he lacked the financial resources to buy WNUV himself, Edwards turned to Carolyn C. Smith. She is mother of the four Smith brothers, the owners of Sinclair Broadcasting. She would have held 70 percent of the stock in the company that would have owned the Baltimore station.

In denying Scripps' petition, the FCC said there was no evidence that Sinclair controlled Edwards' business operations. Time brokerage agreements "are MAKE PLANS Deck All-Star at PltrshlirnPi'o Coming LAWRENCE 4 A i a I nH d7 and Point State Fnday, July 8, July 12 potenual at meet lengendary studios are both trying to start their own TV networks. As an -dent station in a top-25 market WPTT would be highly coveted by either upstart network. "They're both trying to woo me over, but I just haven't made a- decision on what I'm going to do," Edwards claims. Asked if his leasing agreement-, -with WPGH would prevent him from signing a deal with Warner or Paramount Edwards says flatly, "I own the station.

I make the Led by the smallest of new airlines, larger carriers are eliminating many ticketing -restrictions that have made vacation planning a challenge. Some have done so tor only a handful of seats on each flight. Others are doing it on entire routes, Examples of these restrictions and how they're changing. The 1 4-day advance requirement for the cheapest tickets Is less pervasive. More tickets are available at i the lowest fare whether they are one-way or round-trip.

The new fares typically don't require minimum or maximum stays or Saturday-night stays. Many airlines offer two tickets for the price of one. Since business travelers usually fly alone, with their companies paying, these give the airlines a way to pitch the cheapest fares to the most price-conscious flier. Refunds can still be tough to get. Many still charge a fee of 00 to cancel or change plans, but others give your money back.

SourcsrAMw companies Associated Press West Coast, Continental heavily promoted a $99 one-way Peanut Fare. While far lower than the highest fares charged last-minute travelers, the fare also is higher than previous sales. The result was an average fare higher than the $87 per seat the airline had been collecting, said Don Valentine, Continental's senior vice president for marketing and sales. Southwest and new airlines have been selling every seat at low fares to promote themselves, leading even the biggest airlines to go along with the bargains. But the major airlines typically offer only a handful of seats at the bargain tare, then try to sell more expensive seats once they have potential customers on the line.

"The big guys, because they haven't gotten costs down, are trying to price like they did where they can," said Daniel Hersh, a Denver-based airline consultant "They still try to have the high business fares and match low fares with only a few flights a day." Unlike two years ago, when American Airlines introduced its short-lived "Value Pricing" strategy, the latest trend isn't expected to result in a nationwide air-fare war. the letters. In responses released late Monday, Doug McKay, Campbell's executive assistant for economic' development told both airlines that the state's investment in Air South will create new jobs. That not better air service was the reason public money was spent on it the responses say. "Public finance has as its pur- Eose the creation of jobs and tax ase," reads McKay's letter to Delta.

"The issue of enhanced air service is not a consideration." But Delta said it was "disappointed" that its response didn't address whether the airline could get similar incentives from the state. In USAir's letter, McKay suggests that incentives would be made available if USAir moved support services to South Carolina. The detailed debate between Campbell and the airlines sounds a little like inside baseball. But it touches on the single biggest controversy surrounding the startup airline: the millions it received from state and local governments to locate In Columbia. To win the airline, the state government guaranteed a $12 mil-Eon loan using money from the federal Department of Housing and Urban Development.

The city of Columbia gave the airline a $1.5 million grant; Richland and Lexington counties each offered $750,000 grants. Training was arranged through state technical schools and gap financing was arranged through the Jobs-Economic Development Authority. CD rates fl A state official suggested that incentives would be made available if USAir moved support services to South Carolina. sions. TO ATTEND the FanF hu '994 Upper "4 (III I "its year USAir, Delta protest funding for carrier A MAGICAL BASEBALL 6 Lonventin Center Park.

Festivities begin and run through Tuesday your pitching and batting' real-live attractiJ players and coaches and recei thejr free autQgraphs an(j see the largest collection of baseball memorabilia on display outside of the National Baseball Hall of Fame and Museum. is a unique opportunity to yourself the history, tradition, lun and excitement of baseball! anh Steel said it will invest about $64 million to install a continuous bloom caster and other equipment at its Lorain, Ohio, plant. The company said the bloom caster would have a nominal capacity of 100,000 short tons per month, double its current casting capability. It said it expects production at the new caster to begin in the 1995 third quarter. Decorator raises payout Decorator Industries Inc.

de- -clared an increase in the quarterly dividend to 6 cents a share from 5 cents, payable June 21 to shareholders of record June 17. "This dividend increase is a reflection of the company's excellent performance, financial strength, and a vote of confidence in its long-term prospects," said company President William Bassett. Decorator Industries produces draperies and bed spreads for the manufactured housing industry and recreational vehicles. WE opens Calif, center Westinghouse Electric Corp. said its business telecommunications carrier unit opened a regional center in Redwood City, and plans to open similar centers in seven V.S.

cities and Canada. The unit, Westinghouse Communications, primarily serves mid-sized companies, providing services that include 800 numbers, international direct dial, digital lines, audio conferencing and electronic mail. Fisher calls off deal Fisher Scientific International Inc. said it agreed to terminate its plan to acquire Baxter International Inc's Canlab division because of delays in receiving regulatory approval. The companies signed a letter of intent in March.

Canlab, based in Toronto, is a distributor of laboratory products to clinical and industrial laboratories in Canada. Steel majors in deal Bethlehem Steel Corp. and the U.S. Steel Group unit of USX Corp. said they intend to enter into a cooperative research and development agreement to carry out selected joint research and development projects in steel industry technology and processes.

Under the proposed agreement, the companies would exchange proprietary information necessary for research and development. There would be no transfer of assets, people or money under the proposal. Ex-employees sue Press Two former employees of the now defunct Pittsburgh Press have sued the newspaper company and ife nowmt Srnnns Howard, charg ing that the companies failed to pay them severance ana vacation pay. In a class-action suit filed yesterday in District Court in Pitts burgh, Lawrence Walsh, a reporter for the Press, ana joan muuic, a circulation operations manager, al Wo that thpv and more than 150 rv omnlnvpps were entitled to a severance package under the terms of the Press Dismissal ueneuis Plan. The Press closed in December 1992.

In 1993, six former Press employees sued Scripps Howard for severance and vacation pay. PARK! ll ciy A theme Park Is Tn PITTSBURGH'S Convention POINT STATE en a A LER Tq pART Dr Tui. nt ML.L. Center 1 Tickets are available through Ticketmaster locations, at all Kaufmans and select Giant Eagle and National Record Marts and the Pirates Main Ticket Office THree fcvw S.ad,um are not subjea seivice chanje, Or charge by phone (4,2) 323., BUY EARLY AND SAVE! Refnro h.U, a Qe A TAR a By Wendy Warren The State COLUMBIA, S.C. USAir and and Delta Air Lines have written Gov.

Carroll Campbell to protest almost $17 million in state and local incentives offered to their potential competitor, startup airline Air South. And at least Delta isn't happy with Campbell's answer. In its letter, Delta asked if similar incentives would be available to prevent the airline from cutting back service in the Columbia area. "If they are willing to do it for an airline that has never flown, we want to know if they will do it for an airline that has been here six decades," said Greg Plotner, Delta's district sales manager in Columbia. Plotner said Delta has no plans to cut back service in Columbia.

But he said, it is a possibility later. Delta has lost $1.5 billion over the past three years, leading the airline to re-examine the service it offers across the nation, Plotner said. In some mid-sized Texas markets, Delta has switched from jets to turboprop planes. In its letter, Delta implies the state's support of Air South could make cutbacks in Columbia more likely, since competition could make its losses worse. "If, in fact, there is a need for a cutback, we want to know that financial support is available," Plotner said.

USAir wrote a similar letter to Campbell in protest of Air South's incentive package, airport personnel said. Neither airline released This week's best CD Organization 6-month Bell Federal 1-year Spring Hill Savings 3 years Indiana Note: The complete Interest rate chart Rates $6 $8 S6 $8 S0 Sl2 I I L. Al v-iMuicii ti under) Seniors (62 over) VOLUNTEER hotJne Tickets iwill be sold on a timed-entry basis every hour for your convenience. Once you enter FanFest, you may stay as long as you like Sponsors Pittsburgh Post-Gazette Upper Deck Comp USA Cracker Jack Donruss Easton Fleer Foot Locker Fruit of the Loom Giant Eagle Hyatt Regency Pittsburgh Major League Baseball Home Video Manvtlle MetLife Nike Pinnacle Sony Sports Specialties Starter Texaco United Airlines WPGH Fox Club WPXI-TV WAMO 106 JAMZ 102.5 WDVE Radio New Country Y-108 KDKA Radio 1020 Average return This week Last week Last month 4.05 3.362 3.635 3.545 4.58 4.328 4.328 4.212 6.58 5.583 5.550 5.336 appears on page 2 of Sunday's Wheels Section Posl-Gazelte.