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By Knight Kiplinger

The Kiplinger Washington Editors

July 2, 2009

By year-end or so, Congress will give the nod to a major rewriting of the nation's financial regulatory system. This week’s Kiplinger Letter explores whether the package will do more harm than good and what lawmakers are likely to include.

ALSO IN THIS ISSUE: The Economy, Business Costs, Taxes, Supreme Court, Energy, Workplace Regulations, Climate Change, Health Care Legislation and Foreign Policy

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I just attended a franchise seminar. The speaker represents a few hundred franchises that (he says) are hand picked. He has the prospect (aka victim?) answer some questions about themselves then he makes recomendations - based on your personality, capital situation, etc.. If you pick a franchise, then he does some due dilligence for you. If you both decide it's a good idea, he helps you get started. He says he offers this service free of charge, which means he gets a commission if he's able to sell you a franchise. Has anyone done this? Successfully? Unsuccessfully?

-- fender

Airline Capacity Cuts Go Global

It's not just U.S. airlines that are cutting back flights -- it's happening everywhere.

By Martha Lynn Craver, Associate Editor, The Kiplinger Letter

September 5, 2008

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A slow global economy and high fuel prices are hitting airlines around the world hard, forcing global cutbacks. Between now and the end of the year, the world's airlines will offer about 60 million fewer seats, according to a recent report by OAG, the Official Airline Guide. That amounts to a 7% drop compared with the same time last year.

The reductions won't help carriers much. The global airline industry is expected to post losses of $5.2 billion in 2008, according to the International Air Transport Association. "The situation remains bleak. The toxic combination of high oil prices and falling demand continues to poison the industry's profitability," says Giovanni Bisignani, the association's director general and CEO.

The U.S. will see the biggest decline in capacity. One reason is that U.S. carriers have more fare competition from low cost carriers, making it harder for them to hike fares. Also, the weak dollar means that U.S. airlines pay more for fuel than their foreign counterparts.

But Asian and European carriers will take significant hits as well. Asia is on track for a 13% drop in capacity. In Europe, one of the strongest foreign airlines, British Airways, will cut the frequency of flights on some routes, eliminate service on others and delay planned expansions to more cities. Some weaker carriers, such as SAS, Alitalia and Olympic, may not survive.

The result for travelers will be higher fares and fewer choices. Airline analysts say fares need to go up 20% because of the high cost of fuel, but actual increases are more likely to be around 8%, as demand drops in the slowing economy. "And loss of service will continue into next year…until an equilibrium is reached on supply and demand," says Vaughn Cordle, CEO and chief analyst of AirlineForecasts. Figure on as much as another 5% reduction in capacity in the U.S. in 2009, and 10% globally, according to Cordle.

Some airports will lose service altogether -- 275, including 32 in the U.S., 61 in China and 26 in Russia. U.S. airports include Athens, Ga.; Salem, Ore.; Youngstown, Ohio; Santa Fe, N.M.; Jonesboro, Ark., and Kingman, Ariz.

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