Pay-for-priority fast lane pitched for Web
LOS ANGELES » The nation’s top telecoms regulator is proposing to allow a pay-for-priority fast lane on the Internet for movies, music and other services to get to people’s homes. Under the proposal, an access provider could demand that high-traffic services such as Netflix pay for preferential treatment. The proposal would include safeguards to make sure the arrangements don’t harm consumers or stifle competition and free speech.
Consumer advocates say the proposed system would inevitably allow deep-pocketed Internet giants like Netflix, Google and Facebook to maintain their edge over startups because they can pay to ensure snappier connections and clearer, uninterrupted video.
Firms begin to spend, invest in equipment
NEW YORK » Companies are finally starting to spend some of the cash they’ve been sitting on, and that could mean a stronger economy and more jobs on the way.
U.S. industrial leaders such as General Electric, Honeywell and Caterpillar have been posting strong financial results in recent weeks and telling investors that orders are strong. Economists say that means other large companies are investing in expensive equipment they need to increase their business.
Big manufacturers have cut costs, slimmed down their operations and accumulated cash since the financial crisis. Now, finally, the economies of the U.S. and Europe are showing steady progress, which makes their customers more confident and willing to spend.
American, Southwest Air post big profits
DALLAS » Even with the turbulence of severe winter storms and stubbornly high fuel prices, many of the major airlines are cruising, and their stock prices are soaring.
Mergers have reduced competition and made it easier for the airlines to limit the supply of seats and raise average fares. Extra fees bring in billions more each year.
On Thursday, American Airlines and Southwest Airlines reported record profits for the first quarter, usually the weakest time of year for the airlines. That followed a rousing report from Delta Air Lines a day earlier. Still stuck on the tarmac: United Airlines. While rivals were making money, United lost another $609 million during the first three months of the year.
Wall Street warms to Amazon’s results
NEW YORK » Amazon’s first-quarter profit rose 18 percent as shoppers continued to flock to the online mega retailer to buy goods. The results beat market expectations, and shares rose in aftermarket trading Thursday.
Amazon has long focused on spending the money it makes to enlarge its business and expand into new areas, from movie streaming to e-readers and even grocery delivery. While investors have largely given Amazon a pass for focusing on growth and investment rather than turning a strong profit, Amazon has been making some moves lately to strengthen its bottom line.
Starbucks reports global sales rise of 6%
NEW YORK » Starbucks reported a stronger quarterly profit Thursday as customers in the U.S. continued shelling out more money at its cafes.
The Seattle-based chain said global sales at established locations rose 6 percent for its second fiscal quarter, including in the U.S., where it has more than 11,000 cafes. Operating margin also improved as a result of lower costs for ingredients, and the company raised its profit outlook for the year. Chief Operating Officer Troy Alstead said that the domestic sales increase was the result of an uptick in customer visits, as well as people spending more on average when they visited.
ON THE MOVE
Outrigger Enterprises Group has announced:
>> Mary Loy has been promoted to director of sales and marketing for the Outrigger Waikiki on the Beach. Loy has been Outrigger’s regional director of sales since 2002 and was previously a sales manager at the Outrigger Reef on the Beach as well as front office manager and assistant hotel manager at Outrigger East and West Hotels.
>> Richard Oshiro has been hired as director of sales and marketing for Outrigger Reef on the Beach. He was previously an executive assistant manager and director of sales and marketing at Mira?mar at Wai?kiki as well as regional director of sales for Westcoast Hotels and director of sales for?Waikiki Parkside Hotel.
