SA investigates World Cup airline price-fixing

Six South African airlines are being investigated for allegedly colluding to hike fares for local flights during the football World Cup in June. The country's presidency said it had received public complaints that fares had become "drastically high". South African Airways has agreed to provide the Competition Commission with evidence against the other airlines. Fifa recently said fewer foreign fans than expected would go to the World Cup - partly due to a lack of flights. Many fans are likely to fly between different World Cup venues which are spread around South Africa. The airlines being investigated are: Comair, South African Airways (SAA), 1 time, Airlink, SA Express and Mango. Except for SAA, the other airlines have denied the allegations but said they would co- operate with the commission. Extra flights The 2010 co-ordinating unit in the president's office asked the Competition Commission to investigate the complaints. "We hope the commission will resolve this matter timeously to ensure that this does not prove detrimental to the tournament and to tourist attraction," said Zukile Nomvete, head of the unit, report South Africa's Times newspaper. SAA has already provided e-mail correspondence between the airlines, which allegedly backs up the charges of price-fixing. On Wednesday, world football authority Fifa said it was now expecting around 450 foreign fans to travel to South Africa - down from initial estimates of one million. It said they were partly put off by the cost of flying to South Africa - a separate issue to the one now being investigated. Fifa secretary-general Jerome Valcke said the organisation would now work with local football associations to create extra flights and packages for fans to attend the World Cup. In 2006 , SAA was fined 55 m rand ($7 m; £4.5 mat current prices) after being found guilty of price-fixing with German carrier Lufthansa. The airline was also fined on two-charges of anti-competitive behaviour.

US economy in fastest growth

The US economy grew by an annualised rate of 5.7 % between October and December, official figures have shown. The number, which is a first estimate, is a big rise from the previous quarter's growth rate of 2. %. It suggests the country's economy is growing at its fastest pace for six years and confirms the US economy has left its year-long recession behind. But even with the rebound, gross domestic product (GDP) shrank by 2.4 % across 2009 a whole. That was the worst annual performance since 1946. 'Encouraging news' White House economist Christina Romer said the strong growth in the fourth quarter of 2009 was "the most positive news to date on the economy". "It is important not to read too much into a single report, positive or negative," she added. "There will surely be bumps in the road ahead. Nonetheless, today's report is a welcome piece of encouraging news." US GDP is expressed as an annualised rate, or annual pace, which shows what the three months' economic activity would mean if it carried on for a year. The Bureau of Economic Analysis, which releases the data, emphasised that the fourth-quarter advance estimate was based on incomplete information and was subject to further revision. Growth in the third quarter was originally estimated at an annualised rate of 3.5 was revised down to 2.2 % after more information was received. Most of the growth came from increased manufacturing to rebuild inventories. Consumer spending - the biggest component of the US economy - was down on the previous quarter. Great number? That point was singled out by Manoj Ladwa, a senior trader at ETX Capital: "The 'engine of the economy' that is consumer spending contributed little to the overall improvement in the numbers, indicating the recovery may still falter." Others saw the news as more positive. Jack Ablin, the chief investment officer at Harris Private Bank in Chicago said: "Wow, great number.

Honda recalls car

Honda has announced the recall of 646 ,000 cars globally to fix a switch defect that could cause a fire. The recall includes Jazz models, also known as Fit in some countries, built in Japan, China, Brazil, Thailand, Malaysia and India, Honda said. Three cases of fires due to the defect have so far been reported - two in the US and one in South Africa. In September, two-year-old Vanilla Nurse was killed in Cape Town when the car she was sleeping in caught fire. The total number of recalls includes 619 Jazz, or Fit, models globally and 27 ,000 models in Asia. In the US, 140 ,000 vehicles are being recalled. Just over 171 ,000 Jazz cars in Britain will be recalled in March. In a statement, Honda said a defective master switch could cause water to enter the power window switch and could, in some cases, cause a fire. On Thursday, carmaker Toyota announced the recall of vehicles in the US, Europe and China over concerns about accelerator pedals getting stuck on floor mats.

Airbus price rise

Planemaker Airbus has raised the price of its aircraft by an average of 5.8 % to counteract the effects of a weak dollar and rising material costs. In a statement, the company said the increase, which applied from the beginning of January, includes all new aircraft. It is the first price increase by the company in two years. "We have tried to keep prices down for as long as we can," said John Leahy, chief operating officer at Airbus. "However, even with record aircraft deliveries and impressive orders in recent years, the continuing strength of the euro against the US dollar and the ongoing financial challenges ahead have forced us to take action," he said. Earlier this month, Airbus said it delivered 498 aircraft to customers in 2009 - 15 than in 2008. This meant it beat rival Boeing in terms of deliveries for the seventh year running, according to Airbus. At the end of 2009 , Airbus had a total order backlog of almost 3 ,500 aircraft and an order book worth $437 bn.

Boeing back in profit

US aerospace giant Boeing reported Wednesday a swing into profit in the fourth quarter on soaring sales but said it faces 'significant' challenges that could impact results in 2010. Boeing posted fourth-quarter earnings of $1.268 billion, lifted by a surge in revenues. The aerospace giant's earnings amounted to $1.75 per share, well ahead of analyst expectations of $1.36 a share. The results compared with a loss of $86 million in the same period a year earlier, when earnings were hit by a machinists strike and charges to modify its 747 aircraft. Revenues for the October-December period rose 42 per cent to $17.93 billion, slightly better than expectations. 'We put a strong finish on 2009 by getting the 787 in the air and generating solid core operating performance across the company,' said Jim McNerney, Boeing chairman, president and chief executive, referring to the new Dreamliner aircraft whose first test flight took place last month. 'Focus areas for 2010 are to continue our strong operational performance, certify and deliver the 787 and 747-8, and further reposition our defence, space and security business. 'While the challenges ahead are significant, I believe we have the people and the resources we need to be successful and to begin consistently delivering on this company's great potential.' For all of 2009, Boeing said it had net profit of $1.312 billion, less than half it made in the prior year. Full-year revenue rose to 'a record' $68.281 billion, the Chicago-based firm said, a 12 per cent rise from 2008 driven by an increase in commercial aircraft sales and growth in the defence unit. Earnings per share were $1.84, also beating analysts' expectations of 1.44 dollars and the company's own guidance of $1.35 to $1.55. The commercial aircraft division had a net loss of 600 million dollars for the year due developments with the much- delayed new 787 Dreamliner program and the wide-body 747, the firm said.

ACCA board launches a office in Dhaka

The Association of Chartered Certified Accountants, a global accountancy body, launched its Bangladesh office on Wednesday night. Commerce minister Faruk Khan attended the inaugural session of the office as chief guest at Westin Hotel in Dhaka. Chaired by ACCA country manager for Bangladesh Mohua Rashid, the function was attended among others, by British high commissioner in Dhaka Stephen Evans, former advisor of caretaker government Akbar Ali Khan, ACCA executive director (markets) Laurie Gillow and director of British Council Charles Nuttal. Mohua Rashid said, 'As the leading professional body for accountants, ACCA and commerce go hand in hand. We are committed to developing the profession in Bangladesh to bring benefits to the economy'. She also said that that there are about 5000 students in Bangladesh studying with ACCA. They are taking examinations under the supervision of British Council and achieving brilliant results to groom themselves for the competitive business environment in the country and across the globe. 'This is the reason for ACCA to establish a local office to benefit its students and members in Bangladesh' she added. Mohua Rasid informed that the ACCA is supporting some 131,500 members and 362,000 students throughout their careers, providing service of 42 offices and active centres across the world and this office will bring better opportunities for Bangladeshi students to get the degree.

Nokia post profit

The world's top mobile phone maker, Nokia Corp, on Thursday said strong sales of smart phones and lower costs helped profits rise 65 percent in the fourth quarter despite a drop in total revenue. Net profit was 948 million euros ($1.33 billion), up from euro576 million in the last quarter of 2008. But net sales in the last three months of 2009 dropped 5.3 percent to 12.0 billion euros from 12.7 billion euros in the same period a year earlier. The Finnish company said it boosted its share of the mobile phone market to 39 percent, from 38 percent in the previous quarter and 37 percent in the fourth quarter of 2008. Nokia CEO Olli-Pekka Kallasvuo said that included gains in the market for smart phones, driven by the launch of new models.