Business briefs
American Airlines demands mechanics pay for flight delays
American Airlines is demanding that its mechanics’ unions pay for hundreds of flight delays and cancellations over the past two months. In a court filing, the carrier seeks compensation for losses from violations to a June 14 restraining order telling mechanics to cease work slowdowns. Millions of dollars in fines could result if a U. S. District Court judge holds in contempt of court the Transport Workers Union and International Association of Machinists. They have 30,000 members working for American Airlines.
Vaping companies sue to delay e- cigarette review
The Vapor Technology Association is suing the U. S. government to delay a review of electronic cigarettes. The group said the Food and Drug Administration’s deadline of May could wipe out many smaller companies. The FDA gained authority to police e- cigarettes in 2016. But regulators have pushed back the timeline to review because there now are thousands of products on the market.
Ancestry. com owners aim to extract $ 900M payout with loan
The owners of Ancestry. com Inc., the DNA analysis and family tree company, are turning to a well- tested private equity play for taking cash out of a company: topping up on debt. An investor group led by Singapore’s sovereign wealth fund GIC and private equity firm Silver Lake Management is looking to pull out more than $ 900 million from the company through a special dividend mostly funded by new borrowings. They are also seeking approval for another one- time distribution before year- end.
Ford extends clutch warranty
Ford Motor Co. said it is extending its warranty for 560,000 Focus and Fiesta cars with troubled transmissions and will reimburse owners who paid for repairs not covered by the previous warranty. Ford said the warranty was now good for seven years or 100,000 miles on “clutch and related hardware” for 2014- 16 Focus and 2014- 15 Fiesta vehicles assembled after July 4, 2013.
We Work reveals rapid growth and massive losses ahead of IPO
We Work’s parent company gave investors a detailed look at its finances Wednesday, revealing breakneck growth and massive losses as the office- sharing company prepares for its initial public offering. Founded in 2010, We Work now is among the biggest corporate landlords in some cities, with 527,000 members in 111 cities worldwide, according to its regulatory filing. We Work lost $ 1.61 billion in 2018 on $ 1.82 billion in revenue.