Share “Business briefs for June 27”

Business briefs for June 27

Business briefs for June 27
By The Associated Press Modified: June 26, 2013 at 10:28 pm •  Published: June 27, 2013

Delta is fined over excessive ‘bumps'

The government is fining Delta Air Lines Inc. $750,000 for bumping some passengers involuntarily, without offering compensation or seeking volunteers first. Airlines sometimes sell too many tickets for a flight, and have to “bump” some or move them to a later flight. If travelers don't volunteer, the airline has to compensate them. The Transportation Department says Delta has a widespread practice of noncompliance in how it handles bumped customers. Delta says the incidents were isolated, and that it has been training its employees in how to handle overbooked flights. Atlanta-based Delta can use $425,000 of the penalty to buy tablet computers to record whether customers volunteer to be bumped. Delta has already been planning to buy tablets for that job. Delta was fined $375,000 in 2009 for similar violations.

Europe seeks sustainable farming

The European Union has agreed on an outline for a drastic farm reform program that seeks to boost environment-friendly agriculture. The seven-year program is to kick off next year. It seeks to move away from the subsidy-heavy policies that lead to excessive red tape and are kinder to huge companies than to the small farmers. Irish Farm Minister Simon Coveney said Wednesday that the negotiators from the member states and the European Parliament “have delivered a policy that I believe secures the sustainable development of the sector up to 2020 and beyond.”

GM invests in Mexican factories

General Motors says it will invest $691 million in its assembly plants in the Mexican cities of Silao, San Luis Potosi and Toluca. GM Mexico's president Ernesto Hernandez said Wednesday the investment will help build a new factory in Silao to manufacture 8-speed transmissions and expand the factories in San Luis Potosi and Toluca. Hernandez added that the automotive sector is one the pillars of Mexico's economy, representing more than 20 percent of manufacturing gross domestic product. GM has operated in Mexico for 78 years.

From wire reports