Erie Insurance Posts Strong Quarter

Terry Cavanaugh doesn’t see much mystery in the factors that shaped Erie Indemnity Co.’s $43 million profit in the second quarter.

Cavanaugh, the company’s chief executive, said that profit — down 17 percent from the same quarter in 2011 — was boosted by strong management fee revenues but held back by higher operating expenses and lower investment income.

Erie County’s third-largest employer will likely do what it can to address sagging investment income, which fell 64 percent from $17 million to $6 million.

Read more: http://www.goerie.com/article/20120805/BUSINESS05/308059987/Erie-Insurance-posts-strong-quarter

Blue Cross Sues Scranton After City Defaults On $2 Million Note

Blue Cross of Northeastern Pennsylvania filed a lawsuit Wednesday against Scranton seeking $2.05 million owed by the city in a promissory note from last fall.

The city executed a note on Oct. 27 promising to pay Blue Cross $2 million in unpaid bills by Jan. 5, the lawsuit states. But the city failed to pay and that constituted a default, the lawsuit states.

As of Wednesday, no payment had yet been made and the lawsuit seeks the principal amount of $2 million as well as 5 percent interest that accrued to $58,904 from Jan. 6 to Wednesday, for a total amount sought of $2,058,904, according to the complaint.

Blue Cross has been one of the city’s largest vendors with bills that have gone unpaid under the city’s financial crisis. As such, the lawsuit was not necessarily unexpected, said Mayor Chris Doherty, adding that he is in contact regularly with Blue Cross about the situation and the firm is continuing to provide health care coverage for the city’s employees.

Read more: http://thetimes-tribune.com/news/blue-cross-sues-scranton-after-city-defaults-on-2-million-note-1.1356343

Wilkes-Barre/Scranton One Of More Than 100 U.S. Airports At Risk Of Closure

More than 100 U.S. airports, including Wilkes-Barre/Scranton International, are in jeopardy of losing their air traffic control service – forcing their closure – under automatic federal spending cuts set to take effect Jan. 2, according to a Center for American Progress study.

Under the potential across-the-board budget cuts, or sequestration, the Federal Aviation Administration would be required to slash an estimated $1.35 billion, or approximately 9 percent, from its annual budget for each of the next 10 years, starting in January, to reduce the nation’s deficit, according to the study.

In order to decrease its expenditures, the administration may choose to restrict flights nationwide – from 70,000 to 62,000 per year – said Scott Lilly, a CAP senior writer and the author of the study.

However, Mr. Lilly said it is more likely the FAA will be forced to cut air traffic service at 106 of the nation’s smaller commercial airports – which he defined as less than 750,000 passengers per year – including the Wilkes-Barre/Scranton International Airport, Lehigh Valley International Airport and Harrisburg International Airport.

Read more:http://thetimes-tribune.com/news/wilkes-barre-scranton-one-of-more-than-100-u-s-airports-at-risk-of-closure-1.1355940