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Economy Briefs: Backlog, delays after short EgyptAir strike

- - Sunday, September 9, 2012

CAIRO — Officials at Egypt's main international airport were reducing a backlog of delayed flights and trying to placate angry passengers on Sunday, after two days of strikes left planes grounded and some travelers stranded.

More than 90 percent of flights with national carrier EgyptAir were back on track, officials said, after concessions by management on most non-pay-related demands, including a hiring boost and the lifting of a ban on the wearing of Muslim veils by flight attendants, ended the action.

TREASURY

U.S. government to sell $18 billion in AIG stock

NEW YORK — The U.S. government is selling more of its shares in insurer American International Group Inc., in a move that should decrease its holdings below a majority stake for the first time since the $182 billion bailout in 2008.

The sale is the latest step to recoup taxpayer money spent on the largest bailout of the financial crisis.

AIG said Sunday that the Treasury Department is selling $18 billion worth of its common shares to institutional investors.

GREECE

Prime minister vows new spending cuts will work

THESSALONIKI — Greek Prime Minister Antonis Samaras insisted Saturday that the latest package of deep spending cuts, which will once again affect wages and pensions, will be the last, but he also defended the measures as necessary to restoring his country's financial credibility.

The government has endorsed the austerity measures to keep receiving funds from the so-called "troika" of creditors — the European Commission, the European Central Bank and the International Monetary Fund. Adoption of the package is necessary for the release of a long-delayed $39.39 billion rescue loan installment, without which Greece will be forced to default on its loans and may have to quit using the euro.

AIRLINES

Creditors expect decision on AMR by year's end

DALLAS — AMR Corp.'s bankruptcy creditors expect the parent company of American Airlines to decide by year's end whether to merge with another airline or remain an independent company.

The committee representing AMR's unsecured creditors made the comment in a footnote to a bankruptcy court filing Friday.

Since filing for bankruptcy protection in November, AMR management has favored remaining independent. But US Airways has pushed for a merger, so AMR agreed to work with its creditors to consider merger possibilities.

The creditors committee said in Friday's filing that it "expects that this process will be completed during the current calendar year." Once AMR and the creditors agree on a strategy for exiting bankruptcy protection, the committee "should be able" to support AMR's filing of a reorganization plan.

CALIFORNIA

Intel warns about losses due to PC sales weakness

SAN FRANCISCO — Intel's sales are falling at a rate that blindsided the chip maker's management, amplifying Wall Street's worries about the slumping personal computer market and the frail economy.

The foreboding news came Friday in revisions to Intel Corp.'s financial guidance for its current quarter.

The world's largest maker of computer chips now expects to post third-quarter revenue of $13.2 billion. That would represent a 7 percent decline from the same time last year when Intel's revenue totaled $14.2 billion.

From wire dispatches and staff reports