■AVIATION
Air New Zealand freezes pay
Air New Zealand will freeze the salaries of about 1,000 senior staff and limit pay hikes for lower paid workers as demand for travel languishes amid the global recession. Chief executive Rob Fyfe said yesterday the airline is also looking at cuts to flights, with the results of its investigation expected within two weeks. “With revenue under pressure we must do everything possible to manage our costs,” he said in a statement. Some 200 workers have already been made redundant at the national carrier, which is reducing labor costs through leave without pay, flexible working arrangements, overtime cuts and not replacing staff who leave. The freeze affects managers and other staff earning more than NZ$80,000 (US$46,800) a year who don’t fall under a contract negotiated by unions — about 9 percent of the airline’s employees. From July 1, maximum pay increases for lower-paid workers will be limited to between 1 percent and 2.5 percent.
■AUTOMOBILES
Toyota reveals new Prius
Toyota rolled out the revamped Prius yesterday and said it already had orders for 80,000 units in Japan for the remodeled hybrid amid intensifying competition with Honda’s rival offering, the Insight. The world’s largest automaker has set an annual target of 400,000 units in global sales for the car, it said.
■SEMICONDUCTORS
Toshiba to begin share sale
Toshiba Corp, Japan’s biggest maker of semiconductors, will sell more than US$3 billion in shares after a record loss wiped out more than half of the company’s capital last year. Toshiba plans to offer 870 million new shares at 3 percent to 5 percent below the stock closing price on the day of the sale, which may be as early as next week, said an e-mail sent to investors by sale arranger Nomura Holdings Inc yesterday. About 690 million shares will be sold to Japanese investors and 180 million to overseas buyers, the e-mail said. Toshiba plans to sell about US$5 billion in shares and bonds after tumbling chip prices drove the company to a loss of ¥343.6 billion (US$3.6 billion) last fiscal year.
■SOFTWARE
SAP positive on outlook
SAP AG, the world’s largest manufacturer of business-management software, said China’s 4 trillion yuan (US$586 billion) plan to boost the economy was having a “positive” effect on the Asia-Pacific region and helping to improve orders. “Our pipeline is looking up for the rest of the year,” Geraldine McBride, chief executive officer of SAP Asia-Pacific Japan, said in an interview yesterday. “I see that there is more liquidity in the market now.” The outlook for Asia is looking “more positive” as SAP seeks to cap costs and as measures by China and other governments in the Asia-Pacific region take effect, McBride said.
■TELECOMS
Union fails to stop Vodafone
A last-minute attempt by South African trade unions to prevent British telecoms giant Vodafone gaining control of local mobile phone operator Vodacom failed at the weekend. A court on Sunday dismissed an application by the Congress of South African Trade Unions to prevent fixed-line operator Telkom selling a 15 percent stake in Vodacom to Vodafone. The 20.95 billion rand (US$2.4 billion) deal gives Vodafone control of Vodacom. Telkom is distributing its remaining 35 percent stake in Vodacom shares to its shareholders. Vodafone already holds the remaining 50 percent.
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