InBusiness: Airline Payrolls Grow

By Tulsa World, Okla.

May 21–U.S. airlines employed 1.6 percent more people in March than a year earlier, the 14th consecutive monthly year-over-year increase, federal officials said Tuesday.

The U.S. Department of Transportation reported that the seven major network carriers — except for American Airlines — all added full-time employees.

Employment at American, which has 7,000 workers in Tulsa, dropped 0.1 percent in March 2008 compared with a year earlier, to 73,100 people. American remains the largest airline employer, however.

The seven network carriers had 283,917 full-time employees in March, the federal report stated.

Ford Motor Co. is further cutting production of big pickup trucks and sport utility vehicles as demand drops in the face of record high gasoline prices.

Ford said Tuesday that it will shutter its Michigan Truck Plant in suburban Detroit for five weeks in June and July. Two people familiar with Ford’s plans also said the company plans to shut down its truck plant in Louisville, Ky., for four weeks in July.

Two-week July shutdowns are normal, but these moves will extend those closures.

The closures add to Ford’s

previously announced plan to cut North American production by 10 percent in the second quarter.

Debt refinanced

Chesapeake Energy Corp. has sold $800 million of 10-year notes, refinancing its debt at a rate 50 basis points cheaper than the previous issue.

The senior notes due 2018 pay a yield of 7.25 percent, compared with the 7.75 percent 10-year notes they are replacing. Tuesday’s notes priced to yield 345 basis points more than U.S. Treasuries of similar maturity, Bloomberg data show. A basis point is 0.01 percentage point.

Oklahoma City-based Chesapeake said it will use proceeds from the sale to redeem as much as $300 million of the 7.75 percent senior notes and to repay revolving debt.

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Copyright (c) 2008, Tulsa World, Okla.

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