Business, in brief

U.S. looks at disruptions at American

U.S. Transportation Secretary Mary E. Peters is examining why thousands of American Airlines passengers were stranded last week as the department tries to prevent a repeat of the disruptions.

“What happened that American Airlines, a month after it reported it was in compliance with a directive, wasn’t in compliance?” Peters spokesman Brian Turmail said.

The review by Peters adds pressure on airlines and the Federal Aviation Administration, which she oversees, to firm up inspection practices.

United seeks to delay new route

UAL Corp.’s United Airlines asked federal regulators for a one-year delay in starting service between San Francisco and Guangzhou, China, because of soaring jet fuel prices. Flights to Guangzhou were to have been added June 18.

ENTERTAINMENT

Directors Guild settles levy suit

The Directors Guild of America has settled a 2006 lawsuit alleging that the union was improperly withholding so-called foreign levies on behalf of non-DGA members. The special taxes are levied by foreign governments to compensate writers and directors for the reuse of their work.

The DGA agreed to have an accounting firm review its foreign levies program, which has distributed about $48 million in levies to guild members and more than $4.9 million to non-DGA members, the union said.

Similar cases against the Writers Guild of America and the Screen Actors Guild are pending.

New Line to lose 450 jobs

Time Warner Inc. said it would eliminate 450 positions at its New Line Cinema unit after the decision to combine the studio with the Warner Bros. Entertainment division.

Forty to 50 people will remain with New Line and about 40 will be offered jobs at Warner Bros., a spokesman said.

COURTS

‘Girls Gone Wild’ trial site shifted

The tax evasion trial of “Girls Gone Wild” founder Joe Francis has been moved to Los Angeles.

A federal judge granted the change of venue from Reno, saying it was justified because Francis and all but a few of those expected to testify live in Southern California.

A federal grand jury indicted Francis, 35, and his companies, Mantra Films Inc. and Sands Media Inc., in April 2007, on two counts of tax evasion.

CASINOS

MGM Mirage to cut 400 workers

MGM Mirage expects to save $200 million through cost cuts that will include firing more than 400 employees.

The dismissals will save $20 million as part of a larger plan to save money in payroll, purchasing and other areas, the Las Vegas company said.

TOURISM

Bill would place police on ships

A bill that would place a peace officer aboard cruise ships sailing from California ports cleared a second state Senate committee.

The Senate Environmental Quality Committee approved the measure on a 4-1 vote. The bill, authored by Sen. Joe Simitian (D-Palo Alto), would place “ocean rangers” on ships. The rangers, funded with a $1-a-day passenger fee, would monitor public safety and ensure that cruise ships comply with environmental regulations.

From Times Staff and Wire Reports