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Correction: Airline Seat Health Risk story

Written By Unknown on Rabu, 15 April 2015 | 23.14

WASHINGTON — In a story April 14 about airline seats, The Associated Press reported erroneously on how the government tracks the percent of airline seats sold. The figure does include seats obtained through frequent flier miles.

A corrected version of the story is below:

Panel asks: Could cramped airline seats be dangerous?

Consumer panel investigates whether cramped airline seats could be dangerous to passengers

By SCOTT MAYEROWITZ

AP Airlines Writer

WASHINGTON (AP) — The shrinking space on airplanes is surely uncomfortable, but it might also be dangerous for passengers' health and safety.

Planes are filled with more passengers than ever before. Fliers are older and heavier. Flight attendants warn about an increase in air rage, and experts question if having rows of seats packed closer together might make it harder for passengers to evacuate after a crash.

A consumer advisory group set up by the Department of Transportation dove into all those issues Tuesday at a public hearing as part of its role to make non-binding suggestions to government regulators.

Charlie Leocha, the consumer representative on the committee, said the government sets standards for the conditions for dogs flying as cargo but doesn't dictate minimum space standards for passengers.

"In a world where animals have more rights to space and food than humans," Leocha said, "it is time that the DOT and FAA take a stand for humane treatment of passengers."

Fliers last summer squeezed into the least amount of personal space in the history of flying. In July, U.S. airlines sold a record 87.8 percent of seats on domestic flights, according to the Bureau of Transportation Statics. That figure includes seats obtained through frequent flier miles but does not include seats occupied by airline employees flying for free.

"Unfortunately, the days of the empty middle seat are a thing of the past," said Julie Frederick, a representative for the American Airlines flight attendants union.

Following the implementation of checked-bag fees in 2008, Frederick said, more and more passengers are carrying on bags, fighting for overhead bin space. That anger carries over through the flight as passengers bump elbows on armrests and bang their knees against tray tables. She said there are more cases of air rage, many of which go unreported.

Questions were also raised if the increased density of seats means passengers won't be able to evacuate fast enough after a crash.

The Federal Aviation Administration runs various tests including how fast passengers can evacuate a plane and how fast they can put on a life preserver.

But Cynthia Corbertt, a human factors researcher with the FAA, testified that it conducts those tests using planes with 31 inches between each row of seats. Many passenger jets today have less legroom. For instance, United Airlines has 30 inches of room, known as pitch, on some jets; Spirit Airlines offers 28 inches.

"We just haven't considered other pitches," Corbertt told the Advisory Committee for Aviation Consumer Protection.

Before any new jet is allowed to fly, the manufacturer must prove that everybody can evacuate in 90 seconds with half of the exits blocked.

Carry-on baggage is strewn throughout the cabin, and the test is conducted in night-like conditions. However, the cabin is not filled with smoke, and all of the passengers are physically fit, dressed in athletic clothing and know that an evacuation is coming.

"We'd like to see more realistic simulations," Frederick testified. She added that most passengers don't pay attention to pre-flight safety briefings, especially now that they can use electronic devices from gate to gate.

Pennsylvania Attorney General Kathleen Kane, who chairs the DOT committee, noted concern that the FAA does not factor in human panic, especially parents who might take extra time to ensure their children are safe before evacuating.

"So they aren't the average traveler, quite honestly," Kane said.

On long flights, there is another risk for fliers: deep vein thrombosis, where a blood clot forms, typically in a leg vein. If that clot gets lose and travels into the lungs, it can cause a blockage.

Nimia L. Reyes, a medical officer with the Centers for Disease Control and Prevention, said that seat size isn't necessarily a factor in people developing the clots or not. The real issue, she said, was how able passengers are to get up, walk around and stretch. Those in window seats have twice the risk of getting deep vein thrombosis than those on the aisle seats.

Producing more legroom isn't that simple.

After years of major losses and a wave of bankruptcies, airlines are finally profitable again after adding baggage fees and increasing the number of seats on jets. Last year, U.S. carriers earned more than a combined $11 billion.

Airlines do offer coach passengers more legroom, if they are willing to pay for it — often $50 extra each way. Many travelers aren't.

Keith Hansen, director of government affairs for budget carrier Allegiant Air, said the No. 1 thing vacationers care about is price.

"The only way we can offer a low airfare ... is to increase the seating density so we can divide the cost of operating a flight among the greatest number of people possible," Hansen said.

The DOT has seen an increase in passenger complaints but few regarding seat recline or personal space, said Blane Workie, a committee member and the department's assistant general counsel for aviation enforcement and proceedings.

David A. Berg, a member of the DOT committee and general counsel for the airline industry's trade and lobbying group, Airlines for America, asked how airlines would respond if the government created a new rule requiring a minimum amount of legroom.

"If airlines are forced to reduce the number of seats," Hansen replied, "inevitably there would be an increase and it would price out part of the traveling public."

___

Scott Mayerowitz can be reached at http://twitter.com/GlobeTrotScott .


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Protester interrupts European Central Bank press conference

FRANKFURT, Germany — A female protester has interrupted the European Central Bank's press conference screaming "End ECB dictatorship."

The protester rushed to the stage where ECB President Mario Draghi was delivering opening remarks after the bank's latest policy meeting.

Draghi reappeared on stage a few minutes later and carried on with his remarks.


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Biogen, Danish company 
in patent spat worth billions

Biotech giant Biogen is locked in a fight with a Danish company over a crucial patent that protects a nearly $3 billion multiple sclerosis drug.

Cambridge-based Biogen is battling with Copenhagen-based Forward Pharma, and both have filed a patent for treating multiple sclerosis with daily doses of 480 mg of dimethyl fumarate. The U.S. Patent Trial and Appeal Board declared an "interference" yesterday — signalling it will address overlapping patents filed by separate parties.

"It is essentially enormously important to have that protection," said Josh Lerner, a professor at Harvard Business School. "When you look at the price trajectory of what happens when you have drugs go off-patent, you typically get a dramatic drop in terms of price, in your ability to monetize the drug."

Forward Pharma's patent was filed in 2005. Biogen's patent was filed in 2012, and is the basis for Tecfidera, Biogen's blockbuster drug that was responsible for 
$2.9 billion in sales last year.

Still, the filing date of the patent is less important than when the actual invention was made. The PTAB will hold a hearing to determine which company invented the treatment first, and award them the patent.

Catherine Falcetti, a spokeswoman for Biogen, said the company's sales, along with its customers and patients, are not affected.

"Our ability to market it is not impacted, and patients can still get Tecfidera," Falcetti said. "We intend to aggressively defend 
this portfolio."

Forward Pharma's patent has led to the creation of its own MS drug, which is still in development.

"This is a key step in advancing our intellectual property in the U.S. covering the use of 480 mg per day of DMF in MS," said Peder Andersen, chief executive of Forward Pharma, in a statement. "We look forward to the start of the interference proceeding and additional progress with our five other pending patent applications in the U.S. and in Europe covering the 480 mg daily dose of DMF."

Lerner said the dispute will likely not reach a conclusion.

"In many of these cases, there's some sort of settlement reached," he said. "There's some sort of licensing deal and payments made."

Other industry analysts said an acquisition of Forward Pharma by Biogen or other companies is among the potential resolutions.


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Investments supporting social good Deval’s focus

Former Gov. Deval Patrick's new job as a managing director at Bain Capital will have him hone in on investment opportunities that support social good, the company said.

He joins company leader and fellow Boston 2024 Olympic supporter Steve Pagliuca, managing director at Bain.

Patrick is expected to target investment opportunities that support social good through education, health, energy, environment and neighborhood development, according to the company.

The announcement comes weeks after Patrick, who served two terms as governor from 2006 to 2014, was tapped in early March to represent the Boston 2024 Olympics bid as a "global ambassador" at a rate of $7,500 a day.

But amid a public outcry over secrecy and hefty salaries for ex-Patrick administration officials hired by the nonprofit, Patrick said he was pursuing another job and would work for Boston 2024 for no pay.

At the time, he did not disclose where he'd land, and a Bain spokesman yesterday declined comment on the timetable of Patrick's discussions with the company, saying only that they began after the former governor left office Jan. 8.

He joins Pagliuca, who is also co-chairman of the Boston 2024 fundraising and finance committee as well as a co-owner of the Celtics.

Pagliuca also ran unsuccessfully for U.S. Senate in 2009 in the special election Democratic primary to fill former U.S. Sen. Edward M. Kennedy's seat. Martha Coakley won the primary but lost in the election to Scott Brown.

Bain Capital was founded by former two-time GOP presidential candidate Mitt Romney.


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Nokia confirms acquisition of French telecommunications company Alcatel-Lucent

Photo by: 

The Associated Press

FILE - This Thursday, Jan. 29, 2015 shows the Nokia head offices in Espoo, Finland. Nokia says it is in advanced discussions to acquire the French telecommunications company Alcatel-Lucent. In a brief statement Tuesday, the Helsinki-based mobile technology concern said the two companies are in advanced negotiations "with respect to a potential full combination which would take the form of a public exchange offer by Nokia for Alcatel-Lucent." (Roni Rekomaa/Lehtikuva via AP, File) FINLAND OUT


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Nokia confirms acquisition of French telecommunications company Alcatel-Lucent

Photo by: 

The Associated Press

FILE - This Thursday, Jan. 29, 2015 shows the Nokia head offices in Espoo, Finland. Nokia says it is in advanced discussions to acquire the French telecommunications company Alcatel-Lucent. In a brief statement Tuesday, the Helsinki-based mobile technology concern said the two companies are in advanced negotiations "with respect to a potential full combination which would take the form of a public exchange offer by Nokia for Alcatel-Lucent." (Roni Rekomaa/Lehtikuva via AP, File) FINLAND OUT


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Marchers in Boston seek higher wages

BOSTON — Backers of a drive to hike wages for the nation's lowest paid workers to at least $15 per hour are holding a series of events in Boston.

Several hundred people, including college students, fast-food restaurant employees and other workers gathered for a rally on Tuesday afternoon at Forsyth Park near Northeastern University. Many held signs bearing messages such as "Fight for $15," ''Stop Corporate Greed," and "Jobs for Justice."

The group later planned a march to a McDonald's restaurant in downtown Boston, with several stops scheduled along the route.

Protesters say Boston is serving as a launching ground for nationwide protests on behalf of low-paid workers.

The Massachusetts Legislature approved a law last year raising the state's minimum wage in three steps to a U.S.-leading $11 per hour by 2017.


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Braintree eyes cease-and-desist order vs. Uber

The city of Braintree is considering sending controversial ride-for-hire company Uber a cease-and-desist order for operating in the city without hackney or livery licenses, officials said.

The move would be a first by a municipality in Massachusetts in the ongoing battle over the tech giant, which has attracted fierce opposition by the traditional taxi industry.

"It's a very good day," said Stephen Regan, a spokesman for the Massachusetts Regional Taxi Advisory Group. "Hopefully it will be the catalyst for other cities and towns to enforce their ordinances as well."

Yesterday, the Board of License Commissioners voted to have the Town Solicitor draft a cease-and-desist letter to Uber and Lyft, commission chair and Town Clerk Jim Casey said.

"The License Commissioners voted to direct the Town Solicitor to draft language for a cease and desist order for ride-hailing services which do not register their vehicles with the Town via the Town's Livery Regulations," he said.

He said the commission is not trying to drive out Uber and Lyft, but require drivers for the companies to register as livery or taxi services.

"The proposed policy would not prevent ride-hailing services from operating within the town boundaries," he said.

The commission will likely to vote on whether to send the letter on April 28.

"Like every municipality, we are trying to decipher the rules of the game, and we're not against Uber, we're not against marketplace options," said Braintree Mayor Joseph Sullivan, who is not on the committee. "We're like every community, trying to handle, determine, what level of oversight is needed."

Uber contends that they are not subject to existing taxi and livery regulation because they are not a traditional transport company. Rather, they claim, they simply connect riders and drivers through their wildly popular app -- a service they say is not currently covered by any existing regulations.

This morning, Uber said it will have a statement in response to the Braintree vote shortly.

Uber and similar service Lyft have faced regulatory scrutiny throughout the state, including by the governor's office, the city of Boston and other cities.

Gov. Charlie Baker is moving forward with state regulations that would provide consistent regulations throughout the state. His administration has been meeting with mayors and municipal leaders to come up with a consensus.

Currently, state law gives cities and towns the power to regulate and oversee transportation in their municipalities.


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European shares advance as Draghi stays the stimulus course

LONDON — European shares rose Wednesday as European Central Bank chief Mario Draghi gave few hints that the bank will bring its stimulus earlier than planned. Shares in Asia fell, however, after figures showed China growing at its slowest pace in six years.

KEEPING SCORE: In Europe, Germany's DAX rose 0.7 percent to 12,273 while the CAC-40 in France was up 0.7 percent at 5,253. Britain's FTSE 100 index of leading British shares was 0.4 percent higher at 7,107. Wall Street was poised for a solid opening with both Dow futures and the broader S&P 500 futures up 0.4 percent.

FOCUS ON DRAGHI: Minutes after being forced from the stage at his briefing by a protester, Mario Draghi, the president of the European Central Bank, indicated that he bank will stick with its monthly bond purchases despite recent signs of an economic rebound in the 19-country eurozone. A raft of solid economic data have ratcheted up expectations that the ECB will ease up the pace on its purchases, so-called tapering. His briefing came after the bank kept its main interest rate unchanged at a record low of 0.05 percent. As his briefing came to an end, the euro was down 0.1 percent at $1.0633.

CHINA DATA: China was also in focus Wednesday after figures showed the world's number 2 economy cooled further as manufacturing and retail sales slowed in January-March. Growth fell to 7 percent from the previous quarter's 7.3 percent, the weakest performance since it tumbled to 6.1 percent in the first quarter of 2009. The slower pace of growth has raised expectations that Beijing will look to enact further stimulus.

ASIA'S DAY: Japan's Nikkei 225 stock index fell 0.2 percent to 19,869.76. Hong Kong's Hang Seng recovered from early losses, gaining 0.2 percent to 27,618.82 and South Korea's Kospi gained 0.4 percent to 2,119.96. But the Shanghai composite index yoyo'd to end the day 1.2 percent lower at 4,084.16. In Australia, whose resource sector is vulnerable to fluctuations in Chinese demand, the S&P ASX/200 fell 0.6 percent to 5,908.40.

ENERGY: Benchmark U.S. crude rose $1.07 to $54.36 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many U.S. refineries, rose 75 cents to $59.17 a barrel in London.


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Correction: Financial Markets story

NEW YORK — In some versions of an April 14 story about financial markets, The Associated Press erroneously reported that IBM plans to release its first-quarter financial results on Friday, April 17. It plans to announce results on Monday, April 20.

A corrected version of the story is below:

US stocks mostly higher after rise in oil, mixed earnings

US stocks end mostly higher after rise in oil, mixed earnings reports; bond prices rise

NEW YORK (AP) — Rising oil prices helped push the stock market mostly higher on Tuesday, but the gains were tiny as investors weighed mixed results from companies reporting earnings.

Stocks fell shortly after the open, then headed mostly higher along with the price of oil. Chevron led the Dow Jones industrial average higher with a 2.2 percent gain.

A jump in JPMorgan Chase after the bank reported strong first-quarter earnings also helped push the blue-chip index higher. Wells Fargo slumped after reporting that its earnings had fallen.

The Dow Jones rose 59.66 points, or 0.3 percent, to 18,036.70. The Standard & Poor's 500 climbed 3.41 points, or 0.2 percent, to 2,095.84. The Nasdaq composite fell 10.96 points, or 0.2 percent, to 4,977.29.

Stocks have generally been rising this year, but the gains have been modest as several factors from labor strife at West Coast ports, bad weather, a slump in oil prices and a strengthening dollar have dug into earnings. A stronger currency makes profits earned overseas by U.S. multinationals worth less when translated back to dollars.

Companies in the S&P 500 are expected to report a 3.5 percent slump in earnings per share in the first quarter, according to S&P Capital IQ. That would be the first quarterly drop since the U.S. was climbing out of recession in 2009.

Many financial analysts and stock strategists are shrugging off the profit hit as temporary. But not everyone is convinced, said LPL Financial economist John Canally, and worry is beginning to creep in.

"What will be the further impact of the strong dollar? If you're an energy company, what do you do if oil prices don't rise? There are no answers yet," said Canally. "And that uncertainly is what markets don't like and so trading is choppy."

The impact of a stronger dollar was seen in Johnson & Johnson's results released Tuesday. The company said a stronger dollar was partly to blame for an 8.6 percent drop in its first-quarter profit. The company also cut its full-year profit forecast. Shares fell three cents to $100.52.

Investors will have more results to mull over in the coming days. Bank of America, Delta Air Lines and Netflix report on Wednesday, giant money manager BlackRock and Goldman Sachs on Thursday and General Electric on Friday and IBM on Monday.

In economic news, the Commerce Department reported that retail sales rose 0.9 percent last month, after declining 0.5 percent in February. The rebound suggests that shoppers are returning after an unseasonably cold winter froze sales.

But the rise was less than economists had expected, and it follows other indicators that the U.S. economic growth is slowing. A jobs report released earlier this month showed that hiring had slowed dramatically in the March.

"It's remarkable that we've had relatively weak economic data but the market has held up," said Mark Luschini, chief investment strategist at Janney Montgomery Scott. He added, "Investors are willing to look through that."

Among stocks making moves:

— JPMorgan Chase gained 97 cents, or 1.6 percent, to $63.04 after reporting earnings rose 11 percent in the first quarter. The nation's largest bank by assets was helped by strong results in its currency, commodities and fixed-income trading businesses.

— Norfolk Southern slumped 4.2 percent after forecasting disappointing first-quarter results after the close of trading on Monday. It said demand for coal shipments for export fell. Shares dropped $4.38 to $100.49. The railroad company reports results on April 29.

— Wells Fargo fell 40 cents, or 0.7 percent, to $54.19 after reporting first-quarter earnings fell slightly from the same period a year earlier. Gains from trading and mortgages were offset by lower income from other sources, such as card fees and deposit service charges.

— Avon Products surged 14 percent after The Wall Street Journal, citing sources familiar with matter, reported that the beauty company is considering "strategic alternatives" that could include selling its North American business. Shares rose $1.14 to $9.15.

The rise in oil Tuesday came on indications that U.S. oil production in places like North Dakota is beginning to slip as a result of a sharp pullback in drilling activity in recent months. Benchmark U.S. crude rose $1.38 to close at $53.29 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, rose 50 cents to close at $58.43 in London.

In other futures trading on the NYMEX:

— Wholesale gasoline rose 3.1 cents to close at $1.836 a gallon.

— Heating oil rose 1.9 cents to close at $1.802 a gallon.

— Natural gas rose 1.9 cents to close at $2.530 per 1,000 cubic feet.

In currency markets, the dollar slipped to 119.37 yen from 120.32 yen. The euro rose to $1.0655 from $1.0597.

Gold fell $6.70 to $1,192.60 an ounce, silver fell 13 cents to $16.16 an ounce and copper fell two cents to $2.70 a pound.

Bond prices rose. The yield on the 10-year Treasury note fell to 1.89 percent from 1.93 percent late Monday.


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