Business FYI: Continental Boosts Airfares Again

Continental Airlines Inc., the fourth-largest U.S. carrier, boosted most U.S. round-trip fares by $10 in response to record high jet-fuel prices.

The increase covers business and leisure travel in all states except Alaska and Hawaii, spokesman David Messing said Friday. AMR Corp.’s American Airlines, UAL Corp.’s United Airlines, Delta Air Lines Inc. and Northwest Airlines Corp. all are studying the increase, spokesmen said.

If other airlines follow Houston-based Continental, it would be the ninth broad-based increase this year, and the fifth since the start of September. The price of jet fuel is the biggest expense for some airlines, and has climbed 44 percent since the start of the year.

Oklahoma rig count down three to 188

The number of rigs actively exploring for oil and natural gas in Oklahoma was down by 3 this week to 188, Baker Hughes Inc. reported Friday.

A year ago, the state’s rig count was 187.

Meanwhile, the nationwide number of active drilling units was down this week by four to 1,760, said Houston-based Baker Hughes.

Of those rigs, 1,428 were exploring for natural gas and 326 for oil. Six were listed as miscellaneous.

A year ago, the U.S. rig count stood at 1,744.

Of the other major oil- and gas-producing states, Louisiana gained 14 rigs, New Mexico added four and Wyoming added three. Texas lost 22 rigs and Colorado lost two.

Baker Hughes has tracked rig counts since 1944.

Macy’s exclusive retailer for Hilfiger brand

Department-store operator Macy’s Inc. on Friday said it agreed to be the exclusive department-store retailer for Tommy Hilfiger U.S.A. men’s and women’s sportswear in the U.S., beginning in fall 2008.

Financial terms were not disclosed. Under the deal, Macy’s will expand Hilfiger merchandise in every Macy’s division and on macys.com.

Tommy Hilfiger was acquired by private equity group Apax Partners for about $1.6 billion in December 2005.

Strike looms on ConocoPhillips’ North Sea rig

Oil workers on the Maersk Innovator rig operated by ConocoPhillips at Norway’s Ekofisk field may halt work to protest the use of a foreign contractor that’s breaching an industry wage accord, a labor union official said.

The rig’s approximately 200 workers will start a labor strike 14 days from now after talks between Norwegian labor union Industri Energi and contractor Frank’s International Ltd. broke down Friday, said Jarle Vines, the union’s negotiator. The union had demanded Frank’s adhere to a Norwegian offshore industry accord for wages and working conditions.

“The negotiations are over and the only thing that can prevent this strike is if ConocoPhillips throws out Frank’s,” Vines said Friday. “There are six people working for Frank’s on the rig and they can’t strike without losing their jobs, so we’re going to strike in sympathy.”

The planned labor action would prevent the Maersk Innovator rig from drilling new production wells at Ekofisk needed to prolong the field’s life, Vines said.

The North Sea site is Norway’s oldest oil field. ConocoPhillips owns about 35 percent of the deposit’s license, according to the company’s Web site.

Capacity plan for JFK airport draws opposition

New York City would suffer a “crippling blow” from a U.S. plan to reduce air-traffic delays by cutting the number of flights allowed at John F. Kennedy International Airport, the facility’s operator said.

The Port Authority of New York and New Jersey backed airlines, tourism and business groups Friday in denouncing a Federal Aviation Administration plan to reduce flights by as much as a third, to pre-1969 levels of about 80 an hour.

Kennedy delays this year helped trigger the worst U.S. air congestion since the federal government began keeping track in 1995.

FCC OKs $24.7 billion Alltel buyout

The Federal Communications Commission on Friday approved a $24.7 billion buyout of Alltel Corp., the nation’s fifth-largest wireless carrier, to a private investment group.

The agency approved the transfer of licenses held by Alltel to Atlantis Holdings LLC, a holding company consisting of TPG Capital, formerly Texas Pacific Group, and GS Capital Partners, a subsidiary of Goldman Sachs.

Alltel shareholders will receive $71.50 per share in cash, according to the terms of the deal. The company said in a statement Friday night that it expects the transaction to close by Thanksgiving Day, Nov. 22.

Little Rock, Ark.-based Alltel provides wireless voice and data services to more than 12 million customers in 36 states. The company specializes in serving rural areas.

Originally published by Bloomberg AP and Staff Reports.

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