American Airlines reports profitAmerican Airlines reported...

BUSINESS DIGEST

July 22, 1993

American Airlines reports profit

American Airlines reported yesterday its first quarterly profit in almost two years, and a top executive took the occasion to invite the airline's unions to discuss an equity stake. It coupled the invitation with a threat to eliminate service in less-profitable markets.

AMR Corp., the airline's parent, said that in the second quarter it earned $47 million, or 39 cents a share, in contrast to a loss of $183 million a year ago. Revenues rose 17.4 percent in the quarter to $4.21 billion.

2 Veteran IBM directors resign

Two veteran IBM directors have decided to resign, clearing the way for the company's new chairman, Louis V. Gerstner Jr., to reshape the composition of the board, according to a person close to the board, the New York Times reported.

The two directors resigning are J. Richard Munro, 62, former co-chief executive of Time Warner Inc., and Stephen D. Bechtel Jr., 68, chairman emeritus of the Bechtel Group Inc.

CEO Club to open in Baltimore

The New York-based CEO Club plans to establish a chapter here, according to Douglas A. Strouse, president of the nascent local chapter.

Membership in the nonprofit club is restricted to chairmen, chief executives and presidents of companies with at least $2 million in annual revenue. Dues are $1,200 annually, and the initiation fee is $500. The first meeting of the local chapter will be held Sept. 8 at 10 a.m. at the Center Club. The fee to attend the meeting is $100; if an executive joins the club at that meeting, the $500 initiation fee will be waived, Mr. Strouse said.

FERC rules against Columbia

The Federal Energy Regulatory Commission (FERC) has ruled that Columbia Gas Transmission Corp. cannot pass through certain costs associated with its Chapter 11 bankruptcy filing -- preventing a possible $9.42 increase in the monthly bill of Baltimore Gas and Electric Co. customers.

FTC deadlocked on Microsoft

The Federal Trade Commission remained deadlocked yesterday over whether to charge the world's biggest software publisher, Microsoft Corp., with engaging in anticompetitive /^ business practices, according to executives familiar with the outcome of the commission's meeting.

The commission deadlock leaves it unclear whether the Microsoft investigation has ended or whether it will ultimately be referred to the Justice Department for further action.

Chevy Chase Bank earnings up

Chevy Chase Savings Bank, F.S.B., said net income rose to $12.4 million in the second quarter from a net loss of $15.7 million a year earlier. Chevy Chase, Maryland's largest savings institution, had assets of $4.8 billion as of June 30.

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