Carrier Plans to Charge
Fees for Carry-On Bags
In a bold move,Spirit Airlines Inc. said Tuesday it would be the first carrier to charge for carry-on luggage, the latest step in unbundling services traditionally included in the price of a ticket.
The low-cost carrier, based in Miramar, Fla., said the new policy would help to cut its fares further.
Starting Aug. 1, Spirit will charge passengers $45 for a carry-on bag, or $30 if they register the bag ahead of time either online or on the phone. Members of the airline's $9 Fare Club will be charged $20. Passengers are allowed just one carry-on bag.
Spirit raised its fee for a second bag checked at the airport to $45 from $25. The fee for a first checked bag is held at $25.
"The real question is, will other airlines follow," said George Hobica , founder of Airfarewatchdog.com.
Since 2008, airlines have been adding checked-bag fees to offset higher fuel costs and declining ticket sales.
Macarthur Coal Rejects
Raised Bid as Inadequate
Australia's Macarthur Coal Ltd. rejected a sweetened US$3.28 billion takeover offer from Peabody Energy /zigman2/quotes/203600175/composite BTU +7.78% Corp. Wednesday, saying it doesn't offer an adequate premium for control of the company.
"Peabody's revised proposal remains highly conditional and does not fully value Macarthur and its significant growth prospects," Macarthur Chairman Keith De Lacy said in a statement.
Macarthur continues to recommend that its shareholders vote in favor of resolutions underpinning its planned takeover of Gloucester Coal Ltd. and associated transactions with Hong Kong's Noble Group Ltd. at a shareholder meeting on set for Monday.
One of the conditions of the Peabody offer was that Macarthur announce by Wednesday afternoon that it would delay this meeting.
Peabody, based in St. Louis, has raised its offer to 14 Australian dollars a share (US$12.89) from an initial offer of A$13 a share, which Macarthur's board had earlier rejected as inadequate.
Firm Settles Patent Suits
With Generic-Drug Makers
Sanofi-Aventis /zigman2/quotes/206928357/delayed FR:SAN +1.91% SA said Tuesday it settled more patent-infringement suits with generic drug makers over its cancer drug Eloxatin.
The French drug maker, which last week announced settlements with Teva Pharmaceutical Industries /zigman2/quotes/205657894/composite TEVA -0.33% Ltd., Fresenius Kabi Oncology Ltd. and Novartis /zigman2/quotes/203243705/composite NVS -0.08% AG's generics unit Sandoz, said Tuesday it also struck deals with three other companies—Hospira Inc.'s Mayne Pharma Ltd. unit, Par Pharmaceutical Companies Inc. and its Turkish partner MN Pharmaceuticals, and Iceland-based Actavis.
As part of the settlements, the six drug makers will stop selling unauthorized versions of Eloxatin, whose generic name is oxaliplatin, in the U.S. between June 30, 2010 and Aug. 9, 2012, after which the companies can sell their products under license.