All posts by Peter Jefferson

About Peter Jefferson

Peter Jefferson is a full-time researcher for www.businessdistrict.com, a task he took on in 2011 when the site was launched. He brings to the position a wealth of practical experience in the field of fiscal policy, having consulted with various government bodies on revenue collection, expenditure and economic growth. Contact Peter at peter[at]businessdistrict.com

US Travelers Wary as Airlines Merge

Transportation Industry, , , ,

The computer glitch last Thursday was short, and luckily did not overly inconvenience travelers at Phoenix Sky Harbor International Airport. There was also some impact from the bump on American Airlines flights in Chicago, Miami, and Dallas-Fort Worth airports.

Passengers are hopeful and cautious about the merger of US Airways and American Airlines; hopeful all will go well, and cautious to avoid unnecessary delays or problems.

Chief pilot Tate Willworth, for Leading Edge Aviation, who flies with US Airways/American often for work, said that his luggage is lost about 3 out of 5 times that he flies with them.

He said he is hoping that the merger will improve the running of the company, but he also added:

“I see it like a pack of sled dogs, if you’re not in the lead it’s a bad view.”

The two major airline companies merged in December 2013. Since that time they have been working to bring together 120,000 employees and about 1,000 airplanes, plus nine hubs, under one unified roof. The next giant step will be on October 17, when the company will transfer the reservations system of US Airways into the American Airlines system.

Robert Benmosche, AIG CEO Dies at 70

News, ,
Robert Benmosche, Chief executive officer of American International Group photo courtesy of AIG via wikipedia
Robert Benmosche, Chief executive officer of American International Group photo courtesy of AIG via wikipedia

Robert Benmosche, well-known for his role in the recovery of AIG (American Insurance Company) after its bailout by the government in 2009, died last week at the age of 70.

He took over AIG in August 2009 after the Obama administration rescued the company from collapse with a $182 billion bailout. Before stepping up to the helm of AIG Benmosche had been the chief of MetLife.

The government recruited Benmosche to lead AIG to avoid another collapse of a huge financial institution such as Lehman Brothers at the height of the financial crisis which began in 2008.

Benmosche retired in 2006 after serving as CEO of MetLife since 2000, when it went public. He moved to his villa in Dubrovnik, Croatia, and lived there until being asked to take over at AIG.

Benmosche died of lung cancer on Friday, February 28, at the NYU Langone Medical Center in New York.

Pakistan to Hold US-Pak Business Opportunities Conference

Emerging Markets, , ,
Chundrigar Road, with 20th century architecture, in central Karachi, Pakistan
Chundrigar Road, with 20th century architecture, in central Karachi, Pakistan

Businessmen, investors and others will be gathering on February 27 for the Pak-US Business Opportunities Conference to take place in Islamabad, Pakistan. In attendance will be US ambassador Richard Olson, plus members of the American Business Council and the Pakistani Minister for Commerce, Khurram Dastgir Khan.

On the agenda of events will be a speech by the Minister for Commerce, who will explain Pakistan’s efforts to bring more foreign investment to the country as well as to increase the amount of trade outside the country.

The major goal of the conference is to introduce Pakistan to the rest of the world as a reliable business and investment partner. Included in discussions about trade will be textiles, agriculture, rice, fruit and vegetables.

There will also be discussions about creating a “US-Pakistan Joint Business Forum.” Organizers of the conference have sent invitations to over 100 American companies and businessmen. The Ministry of Commerce has high expectations that the maximum number of attendees will participate.

ELFA Says Confidence and Capital Investment on the Rise

Economy, ,
Illustration from Pixabay
Illustration from Pixabay

According to the Equipment Leasing and Finance Association (ELFA) there was a 20 percent rise in the amount US companies borrowed for capital investment in the month of December, compared to the same time one year ago.

In addition, there was a 90 percent rise in new loans, leases and lines of credit since last month, to the amount of $12.9 billion.

ELFA Chief Executive William Sutton said in a statement that, “…the equipment finance industry appears poised for the breakout performance industry observers have been waiting for.”

ELFA is a Washington-based trade association that reports on economic data for the equipment finance sector, a $903 billion industry. Credit approvals were done in December compared to November, from 79.1 percent in November to 78.6 percent in December.

The non-profit affiliate of ELFA, the Equipment Leasing & Finance Foundation, said its confidence index went up in January to 66.1 compared to 63.4 in the previous month. According to the foundation any figure over 50 indicates a positive view of the economic future.

Jaguar Land Rover Considering Plant in US

Transportation Industry, , ,
Jaguar Land Rover by Land Rover MENA
Jaguar Land Rover by Land Rover MENA

Tata Motors, India’s largest car manufacturer, is looking into building an additional facility in the United States.  High demand for the luxury Jaguar Land Rover is compelling Tata to free-up their production lines to allow for faster production speeds. The company is quickly reaching its maximum production capacity at their UK factories due to the high demand not only for the JLR, but for all the company’s products.

In the next three months a new factory in China will be commissioned to produce more cars. Demand is expected to rise further as new models and high volume compact cars are produced to meet demand.

The Chief Financial Officer of Jaguar Land Rover Kenneth Gregor said:

“The US is a market for premium cars and a very important market. We are exploring our options to expand manufacturing reach globally and yes US could be one of the markets. We would look at it but that is not to say that we have anything concrete to announce.”