Metro Airport loses FedEx service to New Orleans

Baton Rouge Metropolitan Airport has lost a $600,000-a-year revenue source after FedEx's decision to move its Baton Rouge mail operations back to New Orleans. The cargo carrier, which has a contract with the U.S. Postal Service, relocated to the Capital City from New Orleans after Hurricane Katrina and had maintained operations here as well as in New Orleans until a few weeks ago. Anthony Marino, director of aviation at the Baton Rouge airport, said FedEx officials—after first denying any move was afoot—cited cost-cutting and a desire to help New Orleans. Metro Airport is left with an empty cargo facility, but Marino says it won't go to waste. The airport plans to go ahead with construction of another cargo building, which will cost about $2.7 million. Marino says it's necessary to build such facilities when the airport can afford it in order to attract business. "We will find some other use for the facilities," he says. "We're already talking to other companies. It's not going to stop us. We're going to move forward with it. There are other companies out there and other opportunities out there."—Steve Clark

Daily Report to launch PM edition next month

A second edition of Daily Report will debut Jan. 12. Daily Report AM will go out at 10 a.m. each weekday, and Daily Report PM will follow at 3 p.m. Daily Report subscribers will automatically begin receiving the AM and PM versions. For more information, or to sign up for Daily Report, click here.

Louisiana Lottery sales down 2.6%

Mirroring a national trend, officials with the Louisiana Lottery say their sales have dropped 2.6% compared with last year. Sales of scratch-off tickets have increased slightly in the current fiscal year, which started in July, but Powerball and Lotto revenues are down, says Kimberly Chopin, a lottery spokeswoman. Chopin blames the drop in action to the lack of big Powerball jackpots, which generate an increase in sales. "So far, we've had only one jackpot over $100 million," Chopin says. "Last fiscal year, we had two jackpots over $100 million. One was $300 million." The Louisiana Lottery concluded its best fiscal year since 1993 in June, reporting $376.7 million in revenue. A recent Reuters report said lottery sales in some states were down by as much as 10% because of a cutback in consumer spending during tough economic times. Chopin says sales should pick up in January, when Florida joins the Powerball drawing. "That will create larger jackpots," she says.—Timothy Boone

Publisher: Make-or-break time for EBR School Board

The outrageous comments by School Board member Darryl Robertson about the state's plans to take over 12 failing schools is another embarrassment for the East Baton Rouge Parish School system, Business Report Publisher Rolfe McCollister says. The system is hanging by a thread of community support, and what happens in the next few months could determine if it breaks. The key is for the board to "hire a dynamic, creative, open-minded superintendent and let him or her lead,” McCollister says. Plus: a time to give thanks, a salute to the Forty Under 40, daughters back home and nominations are open for Business Awards and Hall of Fame. Read the column here. Send comments to editors@businessreport.com.

Days Inn sold to Georgia hotel owner

The Days Inn on Rieger Road has been sold for $4.9 million. Shannon Lieu of Augusta, Ga., purchased the 101-room hotel in a deal that was recorded Wednesday. This is the second hotel sale in a week for Siegen Lane Investments, which sold the neighboring Super 8 Motel for $3.6 million.

Financial roundup: Automakers pitch Congress anew on rescue … Black Friday boost doesn’t save retailers from November decline … Number of workers on jobless rolls at 26-year peak

Lawmakers remain skeptical: Humbled U.S. automakers pleaded with Congress today for an expanded $34 billion rescue package, but heard fresh skepticism in a bumpy encore appearance. The three executives made the trip in new-model autos made by their respective companies, two weeks after a botched attempt for aid that included harsh criticism of corporate leaders who flew here on private jets to beg for money. Banking Committee Chairman Chris Dodd, D-Conn., who supports helping the industry, said detailed plans submitted to Congress earlier this week by the three auto companies on how they would use low-cost federal loans to reorganize still left a lot of questions unanswered.

Wal-Mart a bright spot: As merchants announced their November sales figures today, the deep malaise cut across all sectors as shoppers worried about layoffs and shrinking retirement funds focus on necessities. Among the few beneficiaries was Wal-Mart Stores Inc., whose posted sales that beat Wall Street estimates and predicted that sales for established stores for December should be at the high end of estimates. Most mall-based chains and department stores such as teen stalwart Abercrombie & Fitch Co., Kohl's Corp. and Macy's Inc. reported declines of more than 10%. According to the Goldman Sachs-International Council of Shopping Centers sales index of 37 stores, sales dropped 2.7% for November, making it the worst month since at least 1969 when the index began. Excluding Wal-Mart, the index dropped a dramatic 7.7%.

Labor market deteriorates: The number of workers on jobless benefits rolls hit a 26-year high last month, although initial claims dipped last week, data showed today, underscoring the rapid deterioration in the labor market. The four-week moving average of new weekly jobless claims, a better gauge of underlying labor trends because it irons out week-to-week volatility, rose to 524,500 last week, the highest reading since December 18, 1982. This compared to 518,250 the prior week. A Labor Department official said there were no special factors influencing the report.

News roundup: Ad dollars drying up for radio stations … Low fuel prices good news for gas stations … CEO pessimism reaches record levels

Radio, radio: U.S. radio stations could be on track to post the worst annual drop in advertising revenue in decades, Billboard reports. Ad revenue for all radio markets dropped by 10% in October, compared with the same period last year. Through the first 10 months of the year, ad dollars are down 7%. A broadcast analyst says the decline in revenue is similar to what happened in 1954, when ad spending dropped by 9% after a 2% drop in 1953.

A win-win for drivers and store owners: Gas station owners are raking in higher profits thanks to the rapid drop in fuel prices, USA Today reports. The Oil Price Information Service says while retail gas prices have dropped 55% in the past five months, wholesale costs have fallen even further, by 68%. The lower gas prices are also causing retailers' credit card fees to fall, since the charges are generally 2.5% on each sale.

Gloomy outlook: An index of CEO confidence reached its lowest level in November, with executives having a pessimistic outlook for business conditions, investment and hiring. Chief Executive magazine's CEO Index has dropped 56% over the past year. More than 90% of executives say current business conditions are "bad" compared with 28% in November 2007.

Are you the fittest exec in the Capital Region?

Business Report launches its first Fittest Execs competition, in which Capital Region business executives compete in four categories (men under 50, men over 50, women under 50 and women over 50). The competition is limited to C-level, president, vice president, owner, partner, executive director or retired executives of companies or corporations with more than five employees. Fitness appraisals will take place at Bally Total Fitness Baton Rouge through Friday, Dec. 19, with the results to be announced in the Jan. 13 issue of Business Report. The deadline to enter is Monday, Dec. 15. Click here to register or for more information.