CDC: Flu seems to level off except in the West

New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.

The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.

Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.

There is still vaccine available although it may be hard to find. The CDC has a website that can help.

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CDC: http://www.cdc.gov/flu/

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Opera about Nazi atrocity shown in Austria

VIENNA (AP) — Thousands of children were murdered by the Nazis because they fell short of the Aryan ideal. On Friday, a hushed audience gathered in Austria's Parliament to watch the world premiere of an opera depicting how the Nazis methodically killed mentally or physically deficient children at a Vienna hospital during World War II.

The killings were part of a greater campaign that led to the deaths of about 75,000 people — homosexuals, the handicapped, or others the Nazis called "unworthy lives" — and served as a prelude to the Holocaust.

Austrians played a huge role in these and other atrocities of the era — nearly 800 children were killed at Vienna's Spiegelgrund psychiatric ward — and Friday's premiere of the opera "Spiegelgrund" was the latest installment of a national effort to atone for such acts in word and deed.

The timing was picked to commemorate Holocaust Memorial Day, which will be observed worldwide Sunday, and the performance was streamed live on the Internet for international audiences. But the parliamentary venue was chosen for a particularly Austrian reason: as a reminder of how the country's politicians fomented the atmosphere of intolerance and authoritarianism that allowed Hitler's troops to walk in in 1938, and a determination to not let history repeat itself.

Composer Peter Androsch said his focus on the era was in part born of his own family's history. His great grandfather died in a Nazi concentration camp. Androsch said the fact that that was hidden for generations "says a lot about conditions in totalitarian regimes and should serve as a reminder for me and many others."

At the premiere — a hauntingly effective hour-long performance — legislators were joined in the audience by diplomats, Holocaust survivors, former Spiegelgrund patients and other invited guests in an ornate chamber lined with Ionic columns and used for special legislative sessions.

Spiegelgrund survivor Friedrich Zavel was in the audience. He was brought to the clinic in 1940 after being accused of homosexuality. Now 83, he still shudders when he speaks of his ordeals: humiliation, solitary confinement and torture.

The "Wrap Treatment" consisted of orderlies binding a child first in two sheets soaked in ice water, then two dry sheets, followed by waiting for days without food and drink until the body warmth dried the sheets. There also were beatings and injections that either made the child vomit or left him unable to walk for days.

Asked Friday how he felt about the wrongs done to him, Zavel said: "I know neither revenge nor hate."

The opera itself was more of an oratory. Backlit in gloomy purple and red, and accompanied by strings, flute, percussion and a harpsichord, a trio slipped into each other's roles in an allegorical depiction of how all are victims and perpetrators.

Thus a white-coated doctor embodying "The Law" switched from vocalizing about Sparta's doctrine of letting weak newborns die to singing a child's ditty before moving to the role of "Memory" — singing broken phrases that harken back to the horrific experiences of the victimized children. The two other singers shifted roles accordingly as a narrator dryly recited facts reflecting the atrocities committed.

"On some days, so many children were killed that the orderlies had to pile the little bodies on a wheelbarrow," narrator Karl Sibelius intones in one sequence before reading a letter from a mother addressed to an institute doctor and pleading for the return of her son.

Bass Robert Holzer was "The Law," and sopranos Katerina Beranova and Alexandra Diesterhoeft sang "Memory" and "Children's Song" respectively. All were very solid.

Parliament President Barbara Prammer said the nation could no longer focus only on glorifying its past.

"We can't choose our history," she told The Associated Press.

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AP video journalist Philipp Jenne contributed.

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Online: www.sonostream.tv

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Wrigley rooftops offer Cubs billboard revenue

Representatives of the Wrigleyville Rooftops Association proposed a plan to erect LED billboards on rooftops and share revenue with the Chicago Cubs. (Chris Walker, Chicago Tribune)

The rooftop clubs outside Wrigley Field unveiled a plan Friday to put digital signs on their buildings and give the revenue to the Chicago Cubs.

Representatives of the clubs said it is a better alternative to the team's plan to put up signs in the outfield that could potentially block the views from the rooftops and hurt their businesses.

"We believe this is common sense plan is a win-win for the community, rooftops, City Hall and the Cubs," said Beth Murphy, owner of Murphy's Rooftop.

The rooftop owners said they expect their businesses to contribute more than $185 million to the local economy in the next 20 years, $70 million of which would be earmarked for the Cubs. A sign detailing their estimates ended with the words, "Destroying one business to benefit another is not the answer."

Dennis Culloton, a spokesman for the Ricketts family, said that the rooftop owners should discuss their plan with the team "instead of holding press conferences."

A representative of the team, Cubs marketing specialist Kevin Saghy, tried to attend the press conference but was asked to leave the room during the video presentation of the rooftop plan. Saghy brought a tape recorder but did not wear any credentials to indicate he was a Cubs representative.

"A deadline is fast approaching for the team and the city of Chicago to move forward," Culloton said.

Culloton also said the team would bring in more money from advertising atop the back wall of the bleachers than ads on the rooftop buildings.

"Inside the ballpark is going to be infinitely more valuable than advertising outside the ballpark," Culloton said.

Culloton also reiterated the call of Cubs Chairman Tom Ricketts for the city to free up the team to run the ballpark without a slew of restrictions.

"The Ricketts family and the Chicago Cubs want the right to run their business so they can continue to be good stewards of Wrigley Field and in doing so save the beloved ballpark for future generations," he said.

Ryan McLaughlin, a spokesman for the rooftop owners, said Cubs representatives were familiar with the general outline of the plan before today's press conference. Murphy presented it a community meeting Wednesday with Ald. Thomas Tunney, 44th, neighborhood groups and Cubs representatives present, he said.

Tunney suggested Friday the rooftop plan could be a part of the overall effort to rehab Wrigley.

"The advertising proposal from the rooftops can be part of the larger picture for preserving Wrigley," Tunney said in a prepared statement.

"I remain committed to working with the Cubs and small businesses in the neighborhood.  Most importantly, we will continue to engage our residents in discussions concerning Wrigley Field and their quality of life."

asachdev@tribune.com

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Victim: Bullets so intense 'waves of heat clouded' her vision

David Coleman Headley, the terrorist who played a key planning role in the Mumbai massacre that killed more than 160 people in 2008, was sentenced today in Chicago’s federal court  to 35 years in prison.

U.S. District Judge Harry Leinenweber could have imposed a life sentence but chose the sentence recommended by federal prosecutors who wanted Headley rewarded for his extensive cooperation in spite of his help in the deadly attacks in India.

Before imposing the 35-year prison term, the judge said he wanted to make sure Headley, 52, is "never in a position again to commit a terrorist attack."

Leinenweber was skeptical of a letter that Headley recently wrote to him. "I don't have any faith in Mr. Headley when he says he's a changed person," the judge said.

Headley should be "under lock and key for the rest of his life," Leinenweber said.

In the letter, Headley claimed he was learning to embrace "American values" and coming to grips with how he was convinced to plan terrorist attacks under the guise of religious obligation, Leinenweber said.

"Mr. Headley's letter to the judge expressed his sincere remorse," Robert Seeder, one of Headley's attorney, told reporters after the sentencing. "He did explain in that letter what led him to this and how sorry he was. And I think we'll leave it at that."

During the hearing, another defense attorney told the judge that Headley "literally saved lives" by providing valuable information that "no one else knew" about terrorist activities. "He has never minimized his role," attorney John Theis said. "He has accepted responsibility."

Theis told reporters later he had asked the judge for a specific sentence for Headley, but he declined to reveal the length, saying the request was made under seal.

Before the sentence was handed down, a victim of the terror attack told the judge how surprised she was by the youth of the terrorists who stormed into a hotel’s first-floor cafe while she was eating there.

Linda Ragsdale, a Nashville woman who was shot in the back during the 2008 rampage, recalled wondering how a man as young as her son could kill innocent people.  Holding back tears, Ragsdale described a barrage of bullets so intense that "waves of heat clouded" her vision.

"I know what a bullet could do to every part of the human body," Ragsdale said. "I know the sound of life leaving a 13-year-old child. These are things I never needed to know, never needed to experience."

Ragsdale also read from a statement written by a woman whose husband and daughter were killed at the Oberoi Hotel who said it would be an "appalling dishonor" if Headley was sentenced to the 30 to 35 years in prison recommended by federal prosecutors.

But former U.S. Attorney Patrick Fitzgerald, making a surprise appearance at the sentencing hearing, told Leinenweber he should consider the “unusual nature” of Headley’s cooperation even though Headley was involved in a “very, very heinous crime.”

On the night of his arrest at O’Hare International Airport, Headley “freely admitted” his role in the Mumbai massacre within half an hour of being given his Miranda rights, Fitzgerald said.

Headley, 52,  appearing amid heightened security in Leinenweber’s courtroom, faced up to life in prison. He pleaded guilty to scouting out sites to be targeted in the terrorist attack that killed more than 160 people – including six Americans -- in India’s largest city. He also admitted playing a similar role in an aborted plot to storm a Danish newspaper and behead staffers in retaliation for printing a cartoon of the Prophet Muhammad.

Federal prosecutors have cited Headley’s extraordinary cooperation for seeking a sentence of 30 to 35 years in prison.

Headley, who was arrested at O'Hare as he prepared to fly overseas, detailed the inner-workings of Lashkar-e-Taiba, the Pakistani terror organization that planned the Mumbai attacks. His information led to charges against seven terrorist figures, including his childhood friend from a Pakistani school, Tahawwur Rana, a former Chicago businessman.

Headley was the key witness at the trial of Rana, who was convicted of aiding the Denmark plot and providing support to Lashkar.  Judge Leinenweber sentenced him  last week to 14 years in prison, about half what prosecutors sought.

Headley, an American citizen of Pakistani descent, came to the United States at age 17 and was twice convicted of drug smuggling in the late 1980s. He later agreed to work as an informant for the DEA. Headley also revealed during testimony  at Rana’s trial that there was an overlap between his work for the DEA and his early days with Lashkar.

Headley became involved with Lashkar, a radical group that opposes Indian rule in divided Kashmir, around 2000, attending training camps between 2002 and 2005. He had moved to Chicago by 2009 and reconnected with Rana.

Though embraced by Rana’s family, Headley lived a very different life that included multiple wives and apparently indoctrinating even his children with his ideologies. His 5-year-old son once dropped to the ground in a Chicago park and pretended to fire a weapon after a soccer coach yelled "shoot, shoot!" to him during a game, Headley testified at Rana’s trial.

The charges against Headley and Rana likely represented the most significant terrorism case brought during Fitzgerald’s nearly 11 years as Chicago’s chief federal prosecutor.

Bomb-sniffing dogs checked the coats and bags of all the spectators entering Leinenweber’s courtroom today.  At one point, more than 100 people had lined up to attend the sentencing.

asweeney@tribune.com

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Microsoft profit dips ahead of Office revamp

SEATTLE (Reuters) - Microsoft Corp said its quarterly profit fell as Office software sales slowed ahead of a new launch, offseting a solid start for its new Windows 8 operating system.

Profit at the world's largest software company slid to $6.4 billion, or 76 cents per share, in the fiscal second quarter, from $6.6 billion, or 78 cents per share, in the year-ago quarter.

Wall Street had expected 75 cents per share, on average, according to Thomson Reuters I/B/E/S.

Overall sales rose 3 percent to $21.5 billion, Microsoft said on Thursday, in line with analysts' estimates.

With the loss of some deferred revenue to account for discounted upgrades to new software, Office revenue fell about 10 percent to $5.7 billion, which is not unusual ahead of a new launch, expected next week.

Windows sales, which included some deferred revenue from the launch of Windows 8 last October, jumped 24 percent to $5.9 billion.

Microsoft said it has sold more than 60 million Windows 8 licenses since launch, a solid but unspectacular start for its latest operating system.

Microsoft shares fell slightly in after-hours trading.

(Reporting by Bill Rigby; Editing by Richard Chang)

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Azarenka eludes chokehold, gains Australian final

MELBOURNE, Australia (AP) — Sloane Stephens sat for nine minutes, mostly staring at the court and trying to forget the curious timing of Victoria Azarenka's medical timeout. She may have been the only one trying to ignore it.

The 19-year-old American had just saved five match points and broken Azarenka. But she knew she had to hold serve to stay in her first Grand Slam semifinal whenever Azarenka — the No. 1 player and defending Australian Open champion — returned to Rod Laver Arena.

The restless murmuring in the crowd gave way to slow claps. Why had Azarenka chosen that very moment for a medical break?

Azarenka eventually hustled onto the court, and Stephens won only three more points, losing 6-1, 6-4.

"I almost did the choke of the year," Azarenka said in a frank admission during an on-court interview. "At 5-3, having so many chances, I couldn't close it out."

The crowd that had cheered wildly for Stephens, only 25 hours after she ousted an injured Serena Williams, gave Azarenka tepid applause as she left the court. She'll face 2011 finalist Li Na in the final Saturday night. Given the support Li enjoyed in her 6-2, 6-2 win over No. 2-ranked Maria Sharapova, there's no question which player the crowd will favor in the title match.

Azarenka's immediate post-match remarks suggest she panicked after failing to convert five match points, her forehand misfiring. She had little trouble finishing the match after she came back, and the No. 29-seeded Stephens had cooled off.

"I just felt a little bit overwhelmed. I realized I'm one step away from the final and nerves got into me for sure," Azarenka said.

The 23-year-old Belarusian said she was later compelled to explain that she misunderstood the question in the on-court interview, and she wanted to dispel the perception that her medical timeout amounted to little more than gamesmanship.

"I understand the point of people maybe not understanding what I said; me not understanding what I've been asked," she said during an official news conference more than two-thirds devoted to questions on her medical timeout. "So I'm just glad that I'm here, you know, to make everything clear.

"You know, I think you cannot really judge by (a) few words. The situation had to be explained."

Medical staff said Azarenka had timeouts for treatment of left knee and rib injuries. The rib needed to be manipulated because it was affecting her breathing. Tournament director Craig Tiley said Azarenka hadn't broken any rules.

Azarenka hadn't helped herself in a second television interview after the match when she said she couldn't breathe.

"I had chest pains," she said. "It was like I was getting a heart attack."

She tried to allay any negative perception with her explanation that the choking was related to shortness of breath from the rib injury, not her faltering game.

"When you cannot breathe you start to panic," she said. "I was really panicking, not because I couldn't convert my match point. That's not the case. I mean, I'm experienced enough to go over those emotions. But when you cannot breathe, when something's really blocking you, the stress — that was the stress I was talking about.

"What I said — that I was stressed out and choked — was not because I couldn't finish my shot. It was just so stressing me out the pain that I had that, maybe it was overreaction, but I just really couldn't breathe."

Azarenka had retired during previous Grand Slam matches, including a fourth-round match against Serena Williams at the 2009 Australian Open. But with a second major title so close, and the fact she needed to reach the final to retain the No. 1 ranking, she desperately didn't want to quit this time.

For her part, Stephens seemed sympathetic. She had to wait through a medical timeout Wednesday when Williams received treatment for a sore back — the 15-time major winner injured herself after leading by a set and a break. Another rival earlier in the tournament took a long break between sets for other reasons.

"I mean, when you take a medical break or timeout, obviously it's for a reason," she said. "I mean, just another something else that happens. If it was one of my friends, I would say, 'Oh, my God, that sounds like a PP, which is a personal problem. Other than that, it's just unfortunate."

Besides, Stephens said, it didn't affect the outcome of the match.

"No, not at all. She played obviously a really good match," she said. "First set she played awesome; got close in the second. It didn't go my way, but I wouldn't say at all what happened affected the match."

Novak Djokovic dispensed with No. 4-seeded David Ferrer 6-2, 6-2, 6-1 in the night match, saying he "played perfectly" to reach his third consecutive Australian Open title match. Then he dispensed some medical advice of his own.

The Serb, who won the Australian titles in 2008, 2011 and 2012, wore a white shirt with a red cross on the back, pretending to be a doctor to treat Henri Leconte during a legends doubles match at Rod Laver Arena.

He's relaxed now that he has an extra day to prepare for Sunday's final. Djokovic will next play the winner of Friday's semifinal between No. 2 Roger Federer, a four-time Australian Open champion, and No. 3 Andy Murray, the U.S. Open champion.

Djokovic lost only seven points in 11 service games against Ferrer, and hit 30 crisp, clean winners in an almost flawless performance.

"I cannot remember the last time I played so well," Djokovic said. "I've played many great matches, but this one stands out. Hopefully, I can play the same level on Sunday."

He played confidently in the first two sets, and was sublime in the third. Even Ferrer, who has now lost five Grand Slam semifinals and never reached a championship match, was surprised.

After hitting a forehand a fraction wide of the line and losing his challenge in a review, Ferrer double-faulted to give Djokovic match point. The errors were a measure of just how much pressure Djokovic was applying.

Right after his semifinal, Djokovic started playing mind games leading to the final.

"Federer-Murray, when they're playing it's always very close," he said, confirming he'd be closely watching the match. "I wouldn't give the role of the favorite to either of them. I expect to enjoy it. Whoever I play against, I'm going to be ready."

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Fox orders “Sleepy Hollow,” two other drama pilots

LOS ANGELES (TheWrap.com) – Ichabod Crane will ride again – this time on Fox.

The network has given a pilot order to an adaptation of the “Sleepy Hollow” legend from “Fringe” and “Transformers” team Alex Kurtzman and Bob Orci, the network said Tuesday.

A modern-day supernatural thriller based on the Washington Irving tale, “Sleepy Hollow” will be written and executive-produced by Kurtzman and Orci, with Heather Kadin and Len Wiseman also executive-producing. The series comes from K O Paper Products in association with Twentieth Century Fox TV.

Fox also ordered two other drama pilots on Tuesday, including “Delirium,” from writer/executive producer Karyn Usher (“Bones,” “Prison Break.”). Produced by Chernin Entertainment in association with Twentieth Century Fox TV, “Delirium” is based on a best-selling trilogy “about a world where love is deemed illegal and is able to be eradicated with a special procedure.” With just 95 days to go before undergoing her scheduled procedure, the drama’s protagonist, Lena Holoway “does the unthinkable: she falls in love.”

Peter Chernin and Katherine Pope are also serving as executive producers on “Delirium.”

A third pilot, “The List,” revolves around the murders of members of the Federal Witness Security Program, and the U.S. Marshal who leads the hunt for a person who stole a file with the identities of every member of the program. Paul Zbyszewski (“Lost,” “Hawaii 5-0″) is writing and executive-producing, with “Zombieland” director Ruben Fleischer also executive-producing. “The List” is being produced by Twentieth Century Fox TV.

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Penalty could keep smokers out of health overhaul

WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.

The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.

For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.

Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.

Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.

Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.

Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.

Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.

"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.

"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.

Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.

"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."

Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.

First, the law allows insurers to charge older adults up to three times as much as their youngest customers.

Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.

And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.

Here's how the math would work:

Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.

But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.

"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.

In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.

Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.

"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."

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Online:

Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx

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'American Pie' singer fined for speeding in Maine

ROCKLAND, Maine (AP) — "American Pie" singer Don McLean has been fined $400 for driving his Chrysler too fast through a school zone in Maine and has paid the levy.

McLean had contested the charge in September, saying school zone warning lights weren't flashing. He had requested a trial.

Police said during a 40-minute proceeding in Rockland District Court on Thursday the warning lights were flashing.

Judge Patricia Worth found McLean had been speeding in a school zone in Rockport. But she lowered what would be a $515 fine if uncontested to $400.

McLean immediately paid up.

McLean lives in nearby Camden, along Maine's coast. He burst into popularity in 1971 with his hit "American Pie," about the deaths of Buddy Holly, Ritchie Valens and the Big Bopper in a plane crash on Feb. 3, 1959 — The Day the Music Died.

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United to cut 600 front-office jobs

United Continental Holdings Inc. will cut about 600 front-office jobs through voluntary and involuntary cuts, the company said Thursday as it announced disappointing financial losses for 2012.

The world's largest airline did not detail where cutbacks will take place, but Chicago is likely to be most affected considering the corporate headquarters and network operations center are in downtown Chicago and that Chicago O'Hare airport is one of the airline's largest hubs.

The job cuts were announced Thursday morning during a conference call about the airline's profits. United officials said they were disappointed in the airline company's 2012 performance and pledged to improve in 2013, both in financial performance and the airline's operational reliability.

They said they intend to win back corporate customers who defected to other airlines last year when the airline experienced periods of poor on-time performance and high cancellations rates. The operational problems, which have abated since the fall, stemmed from numerous computer-related glitches after the airline merged United and Continental customer reservation systems onto a common platform last March.

United CEO Jeff Smisek called 2012 "the toughest year of our merger integration," but that the airline was "back on track."

"Despite our integration pains, we accomplished an enormous amount and we are now in a position to go forward as a single carrier and compete effectively on a global scale," he said. "Our operations are running smoothly. Our many product improvements are rolling out and our customer satisfaction scores are climbing."

Smisek also said the airline maintains its confidence in the Boeing 787 Dreamliner, which was grounded in the U.S. and elsewhere after numerous glitches, including a serious fire hazard with its lithium ion batteries.

He said he had confidence in the airplane and "Boeing's ability to fix the issues just as they have done on every other new aircraft model they've produced."

Smisek said he has no indication on when the Federal Aviation Administration will allow the planes to fly again, including Dreamliner on a route between Chicago and Houston. Boeing is also based in Chicago.

United, the only U.S. carrier currently operating 787 planes, has six Dreamliners. Smisek said the company expects to take delivery of two additional 787s in the second half of this year.

EARNINGS

United Continental said it lost $723 million in 2012, or $2.18 per share. Excluding special charges of $1.3 billion, mostly related to merging United and Continental, the company earned $589 million, or $1.59 per share, meeting Wall Street analyst expectations.

In the fourth quarter, United lost $620 million, or $1.87 per share, compared with a loss of $138 million, or 42 cents per share, in the same quarter a year earlier.

It took charges of $430 million in the quarter, with much of that tied to paying off pension debt and costs for systems integration and training and severance. Excluding items, United said the 2012 quarterly loss was 58 cents a share, compared with a 61 cent loss expected by analysts on average, according to Thomson Reuters I/B/E/S.

Revenue fell 2.5 percent to $8.7 billion.

Superstorm Sandy, which barreled through the U.S. Northeast in late October, reduced revenue by about $140 million and profit by about $85 million in the fourth quarter. The storm caused shutdowns at major New York area airports, including New Jersey's Newark Liberty International where United operates a major hub.

CUSTOMER SERVICE

Customer service will be a larger focus for the airline, Smisek said during the conference call.

That focus includes a comprehensive customer service training program for airport agents, contact center agents and flight attendants, he said. It will also roll out a program called "It's Our Job," a companywide approach to customer service "that clearly explains our customer service standards and expectation for front line coworkers," Smisek said.

It will also include an expanded recognition program to reward employees for outstanding service, collecting more customer-satisfaction data and roll out of a new set of tools for airport agents, he said.

JOB CUTS

As far as the job cuts, they will not affect unionized workers, such as pilots, flight attendants and airport ground workers, a spokeswoman said. The airline in December reduced the officer ranks by several positions, representing 7 percent of managers with titles of vice president and higher. It will reduce management and administrative staff by 6 percent through voluntary and involuntary cuts and not filling empty positions.

Those cuts will begin in early February, Smisek said in a letter to employees Thursday morning.

gkarp@tribune.com

 

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