Illinois Public Media News

AP - Illinois Public Media News - July 21, 2011

Impact of American Airlines’ Purchase on Boeing

AMR Corp.'s American Airlines is claiming to have made the largest purchase on Wednesday of airplanes in aviation history, but it is raising some questions over how the purchase will affect American's relationship with the Chicago-based Boeing company.

American has had an almost exclusive relationship buying planes from Boeing, or companies Boeing bought out, for years. But that all changed when American announced today that it's buying 200 new planes from Boeing and 260 planes from Boeing's rival, Airbus.

"I think it's hurtful to Boeing," said Aaron Gellman, who follows the airline industry at Northwestern University.

He said the higher ups at Boeing should be raising questions about how Airbus struck such a lucrative deal with American Airlines.

But Florida-based aviation consultant Stuart Klaskin said the order does not mean there is a broken relationship between American and Boeing.

"There's no way they can say they're disappointed," Klaskin said. "They just sold 200 airplanes to American Airlines. I mean, God. It's a massive - by any other standard it's a massive order."

Klaskin said if anything, American caught up with other airline companies by diversifying its fleet of planes so as to not have all its eggs in the Boeing basket.

Meanwhile, Joe Schwieterman, who follows the aviation industry at Chicago's DePaul University, said, "This is really making a statement that they're going to have an equal mix of Airbus and Boeing and I think it's a bit of a wake up call for Boeing, as well, that they shouldn't count on the majority of orders from the big guys here in the U.S."

Schwieterman said there is no need for Boeing to panic. Buying 200 planes is still a huge order and it should give Boeing confidence to make further improvements to its aircraft.

Categories: Business, Transportation

WILL - Illinois Public Media News - July 20, 2011

UI Flight Program Could Land at Parkland College

The University of Illinois' Board of Trustees is poised to vote Thursday on ending its long-running flight training program, but there is a chance the Institute of Aviation may have a new home.

The Urbana campus has provided flight training since the mid-1940's. Parkland College President Tom Ramage said he has been in talks with U of I officials about incorporating the aviation program into his school's curriculum. He said he is interested in keeping the institute alive, even if it is on a smaller scale.

"A private pilot licensure as well as commercial pilot licensure can happen without a degree or it can happen with a degree," he said. "We could go as far as the associate's degree, and partner as we do with many other programs with another university to do that degree competition."

Ramage said the prospect of Parkland adopting the flight program is largely dependent on what happens in the days ahead. He noted that discussions with the U of I about the institute have just started.

"I would imagine if the (University of Illinois) decides not to come and have a discussion with Parkland that they have good reason for it," Ramage said. "I don't know that I would beat down the door trying to figure out why."

On his end, Ramage said he would have to review the cost of maintaining the flight program, and the prospect of post-graduate jobs for aviation students.

A panel of U of I administrators and faculty made the recommendation in February to get rid of the Institute of Aviation as part of a series of cost-cutting measures. If that recommendation goes through with the vote by the Board of Trustees, then the flight program would end by 2014.

Staff and alumni from the Institute of Aviation plan to rally Thursday morning before the Board of Trustees meeting in Chicago.


AP - Illinois Public Media News - July 20, 2011

Republicans Sue Over Legislative Map; Gov. Quinn Defends It

Top Illinois Republicans have sued to invalidate the state's new legislative district map drawn by Democrats.

In a lawsuit filed Wednesday in federal court, House Republican leader Tom Cross and Senate Republican leader Christine Radogno contend the map shortchanges blacks and Latinos and dilutes the voting strength of Republicans.

Democrats were in charge of the redistricting process because they control both the Legislature and the governor's office. Gov. Pat Quinn has signed the map into law, and his office defended it Wednesday, saying it "represents our diverse state and protects the voting rights of minorities.'' Quinn is out of the country on a trip to Israel.

Democrats have defended the map, but it's gotten mixed reviews from community groups. Some praised it for adequately reflecting the state's growing Latino population, while others say it could go further and also better maximize the black voting population in some districts.

The map could be redrawn if the lawsuit is successful.

(AP Photo/Seth Perlman)

Categories: Government, Politics

AP - Illinois Public Media News - July 20, 2011

Attorney Seeks $340,000 from Davlin Estate

An attorney is seeking more than $340,000 from the estate of former Springfield Mayor Tim Davlin, who committed suicide last year.

The lawyer represents the estate of Margaret Ettelbrick. She was Davlin's cousin, and he became executor for her estate after she died in 2003.

The claims filed against Davlin's estate allege that he sold Ettelbrick's house for about $46,000 less than it was worth, spent more than $85,000 for his personal benefit and used more than $200,000 to buy stock in a company.

The (Springfield) State Journal-Register reports that the claims were filed by Kevin McDermott, the Sangamon County public administrator who is administering Ettelbrick's estate.

Davlin shot himself in December on the day he was due in court to answer questions about her estate.

(AP Photo/Tom Gannam)


AP - Illinois Public Media News - July 20, 2011

Governor Quinn on Week-Long Trip to Israel

Illinois Gov. Pat Quinn has taken his work to Israel this week, going on what his office is calling an educational mission. Before he left, Quinn told reporters his trip would mostly focus on Israel's green technology efforts.

"I think it's pretty inspiring that we work together on these important issues of clean water, reducing emissions, having an alternative to petroleum and also definitely education," Quinn said.

On Wednesday, the governor will visit Better Place, a company that develops battery-charging and swapping locations for electric cars. Quinn said he wanted to explore battery-charged vehicles as a possible alternative to petroleum-fueled cars.

Quinn plans to attend a signing ceremony on Thursday for an exchange program between Ben-Gurion University and University of Illinois at Chicago. The program will promote faculty and student exchanges and joint research efforts.

Also on his schedule are plans to sign a 'Sister Lakes' agreement with Israel -- a plan that would benefit Israel's Lake Kinneret (the Sea of Galilee) and Lake Michigan. The agreement would encourage Illinois and Israel to share solutions about water purification, invasive fish species and other concerns.

The governor's office says the trip is paid for by the Jewish United Fund of Metropolitan Chicago. Among the other state leaders visiting Israel with the governor are Illinois State Sens. Jeffrey Schoenberg and Ira Silverstein.

Categories: Government, Politics

WILL - Illinois Public Media News - July 19, 2011

Borders Stores to Close by Late September

Borders says it plans to end its operations by the end of September.

The Ann Arbor-based company announced plans Monday to sell off its assets after not receiving any bids to stay in business. At its peak in 2003, Borders ran more than 1,200 stores, but by the time the company filed for bankruptcy protection in February, that number was cut in half.

Technology played a big role in the company's demise, according to Dilip Sarwate, a professor in business administration at the University of Illinois.

"It's certainly difficult to compete with the likes of Amazon," Sarwate said. "I'm not sure this could be completely avoided. Fewer and fewer people are visiting bookstores. They are going to their computers and buying books."

But Lisa Bayer, who is the marketing director for the University of Illinois Press, said while technology did play a role in Border's downfall, it could have been avoided. She said Borders simply was not prepared for the onslaught of digital reading devices.

"They didn't position themselves to take advantage of various changes," Bayer said. "Barnes and Noble has the NOOK. Amazon developed the Kindle. Borders did really nothing."

Borders did come out with an e-reader last year, known as a Kobo. Produced by an electronic company in Canada, the Kobo will still be available to people who use the software to purchase and read books.

Up until Monday, the University of Illinois Press was still doing business with Borders. Bayer said the publishing company has been distancing itself from the retail giant over the last five years for various reasons, including "very questionable" decisions by the company's management.

Bayer said the University of Illinois Press' involvement with Borders was so minimal that she does not think the bookstore's failure will have a huge impact on the publishing company.

"It's very likely they hadn't even ordered any of our books in a while," she said, noting that many of the University of Illinois Press' books are scholarly journals. "We're not as much of an interest to them as some other kinds of publishers."

Of the nearly 400 Borders bookstores slated to close, three are in Champaign, Mattoon and Peoria.

Mary Beth Nebel runs an independent retail bookstore in Peoria called "I Know You Like a Book." She said she does not think Border's demise is a sign that other retailers are destined to fail.

"I hate to see any bookstore close," she said, reflecting on Border's closure. "I think independent bookstore like I have is much different than a chain store. It's more of a community-based place. I think more people will enjoy that sort of atmosphere."

With Peoria's Borders expected to close and a Barnes and Noble still running, Nebel said she has no intention of changing the way she runs her five-year-old business.


WILL - Illinois Public Media News - July 19, 2011

Heat Wave Affects Illinois Crop Conditions

(With additional reporting from The Associated Press)

Monday's U.S. Department of Agriculture crop report showing a decline in the condition of Illinois' corn crop has been followed by a rise in corn futures prices Tuesday on the Chicago Board of Trade.

In early trading, December corn rose 20 cents to $7.16 and 1/4 cents a bushel. University of Illinois agricultural economist Darrel Good said that is the market reaction he expected.

"We know there's a large number of factors that influence the value of corn," Good said. "But at this time of year, crop conditions and perspective production is the dominant factor. And I think that's influencing the market behavior this week, as there are some increasing concerns about the size of the crop."

The USDA reported 61 percent of the state's corn crop to be in good or excellent condition, which is down from recent weeks. Some fields have started to turn brown. Good said that shows the impact of hot, dry weather on the nation's number two corn-producing state. And with the heat wave continuing this week, he said Illinois crop conditions could take another hit when the Agriculture Department releases another report next Monday.

Good said while weather forecasters are not making many long-term predictions, some models call for at least limited relief from the hot, dry weather in the coming weeks. That could improve crop conditions.

(AP Photo/Seth Perlman)

Categories: Business
Tags: business

WILL - Illinois Public Media News - July 19, 2011

Arbitrator: Quinn Must Give Pay Hikes to Workers

An arbitrator says Gov. Pat Quinn cannot cancel pay raises promised to state workers.

Arbitrator Edwin Benn on Tuesday ordered Quinn to start paying the 2 percent increase within 30 days with back pay. That's according to a copy of Benn's opinion provided by the American Federation of State, County and Municipal Employees.

"These are hard fiscal times for the State - no doubt. However, when the State did not pay the increase," Benn stated. "The State did not keep its promise."

While the ruling comes as a victory for AFSCME, the issue is far from settled. Roughly 30,000 state employees were affected by the administration's decision to cancel the raises.

Gov. Quinn has said he had no choice since the legislature just did not allocate enough money in the budget to pay employees in 14 state agencies.

AFSCME appealed that decision to the arbitrator who last year worked out a labor deal with the governor to issue 2 percent pay increases starting July first of this year.

The arbitrator noted he has power to interpret only the labor deal, and it is up to the courts to decide if the state has the authority under the law and constitution to cancel the raises because the legislature did not to fund them.

A spokesman for the Gov. Quinn said the administration will appeal the arbitrator's ruling.

"Funding these raises would mean that these agencies would not be able to make payroll for the entire year, disrupting core services for the people of Illinois, including children, the elderly and those with special needs," Quinn spokesman Grant Klinzman wrote.

In the fall, AFSCME supported the governor over his opponent, state Sen. Bill Brady (R-Bloomington). The union contributed more than $200,000 to Quinn's campaign.

Categories: Economics, Government, Politics

WILL - Illinois Public Media News - July 19, 2011

Blood Service Agencies Serving C-U, Springfield, Quad Cities Merge

A trend toward consolidation is working its way through the industry that provides blood to hospitals. Urbana-based Community Blood Services of Illinois is merging with a larger firm, Quad Cities-based Mississippi Valley Regional Blood Services.

The Urbana center's chief executive, Pat Kovar, said the jobs of the 71 employees under his watch are safe.

"Realistically we would expect over time you always have some normal attrition, and candidly there may be some employees here who just won't want to continue even though they'll have a job and maybe even doing the same thing, so we'll see," Kovar said, "Right now there are no planned reductions or layoffs as a result of the merger."

Kovar said blood agencies around the countries are considering consolidation as hospital systems merge and the health care industry prepares for big changes in the years ahead. He says the Urbana office will still supply blood for the five hospitals currently in its service area, including Urbana, Danville, Mattoon and Effingham.

Officials hope to complete the regulatory process and make the merger official by November.

Categories: Business, Health

WILL - Illinois Public Media News - July 19, 2011

Urbana City Council Upholds Mayor’s Veto of CVB Funding

The Urbana City Council has narrowly upheld Mayor Laurel Prussing's veto of funding for the Champaign County Convention and Visitors Bureau. Council members voted 4-to-3 against overriding Prussing's veto of those funds.

Some council members say they wanted to find some funding for the agency, but also wanted more evidence of its performance. Members agreed the the department offers a valuable service, but not at a level of $72,000 a year. The mayor wants to use the money for two police positions instead.

Alderwoman Diane Marlin said she regrets the council was being forced to choose, saying Urbana needed both economic development and public safety.

CVB President and CEO Jayne DeLuce said she is looking forward to engaging in additional dialogue with the city, and finding a funding level that leaders are comfortable with.

"I think for a long time, there has been some opportunities where maybe there hadn't been engagment in the past," DeLuce said. "And I'm all willing to do that. Because we have the documentation of what we do. We have great things that we're trying to move forward with. But we do truly need countywide support to be able to do that, because it's really hard to be able to look at say, 'how do you move forward without one of the major stakeholders in the picture?"

DeLuce said the CVB now needs to do a better job of reporting its value to stakeholders, something she says wasn't done well before she arrived 18 months ago.

Alderman Charlie Smyth said discussions will start with $20,000 dollars of unallocated funds to the CVB, and build from there over the next few weeks. But he said any agreement will include expectations in terms of performance.

"I think there's sentiment on the council to fund CVB at some level that we think is appropriate that we can afford," Smyth said. "And at the same time, there's a legitimate concern that we get our money's worth from them."

Aldermen Dennis Roberts, Robert Lewis, Diane Marlin and Charlie Smyth supported Prussing by voting against the override, while Brandon Bowersox, Eric Jakobsson, and Heather Stevenson voted to override. Smyth said he hopes to find about $50,000 by time talk on CVB funding wraps up, likely sometime in August.

Marlin also said she was happy to see the Champaign County Board is considering a funding level of its own for the CVB at its meeting on Thursday.

The city council has also finalized a 1-percent tax on package liquor, along with hiking Urbana's hotel-motel tax from 5 to 6 percent. It's expected to raise $270,000 and pay for raises for the city's AFSCME and police unions. Only Alderwoman Heather Stevenson voted down the fee hikes, saying she was never contacted by Prussing about them, and did not have time to gauge their impact from local businesses.

Categories: Economics, Government, Politics

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