Business Briefs: Credit Freeze in Affect, Nalley Moves to Duluth, AirTran Letting Go Pilots

GA credit freeze goes into affect today
The law that will allow Georgians to protect themselves against identity theft by freezing their credit records takes affect today.

The law allows residents to freeze their credit, preventing businesses and other organizations from reviewing credit records without permission.

The state mandate also places a cap on the fees associated with freezing credit records, the cost is $3 for most citizens, and free for those over 65.

Also, the law requires credit bureaus remove the freeze within 15 minutes of a customers request.

Georgians wishing to place a freeze on their credit must call the three credit bureaus: Atlanta-based Equifax, Experian and TransUnion.

Nalley moving to Duluth
One of the world’s largest automobile retailing companies is relocating to Duluth as a way to cut costs.

The Asbury Automotive Group, headquartered in New York and Stamford, Conn., is placing its metro Atlanta brand dealership, Nalley Automotive Group in Duluth.

According to the Gwinnett Chamber of Commerce, the Fortune 500 company owns 13 Atlanta-area dealerships, and a total of 121 franchises at 89 locations in the U.S.

The company is moving about 70 employees.

Asbury released second quarter earnings of $10.9 million, on Wednesday. This is down 47 percent from the second quarter last year.

AirTran downsizing Atlanta hub, letting pilots go
AirTran Airways is planning to downsize its Atlanta hub due to the high cost of fuel, company executives said Tuesday.

AirTran's Chief Financial Officer Arne Haak said during a conference call yesterday, that due to high oil prices it was not profitable for the company to maintain the Atlanta hub at its capacity.

The Orlando-based airline is also planning on cutting back other hubs in other cities. AirTran also announced an employee pay cut, by as much as 15 percent.

AirTran has reported that the company lost $13.5 million during the second quarter.

AirTran Airways is downsizing its work force in an effort to combat the high price of fuel. The economy airline announced Tuesday it would not furlough flight attendants, but would be letting go some of their pilots.

Tad Hutcheson, AirTran spokesman announced in July its plan to cut about 300 flight attendants and 180 pilots as a cost reducing measure. The airline was trying to reduce costs by $16 million. Employees were given the option to apply for a leave of absence or receive an early-exit package.

However, AirTran received enough requests for leaves many attendants will avoid furlough. The airline did receive very few voluntary exit applications.

Most of the job cuts will be in Atlanta because that is where many of them live. AirTran will make all of its job cuts by Sept. 6.

SunTrust Bank Could Receive Credit Down Grade
SunTrust Bank is under review for a possible credit downgrade, said Moody’s Investor Service on Wednesday.

If Moody does choose to downgrade SunTrust, it would be the second credit-rating firm to do so.

One of Moody's reasons for the credit downgrade, is SunTrust's exposures to potential problems with its mortgages. A lower rating could increase SunTrust's borrowing costs.

The Atlanta-based bank announced last week a net income of $535 million in the second quarter, that is 20 percent lower than the year-earlier.

Tax Breaks For Developers and Business Owners

Local business owners can take advantage of a tax break and benefit the community at the same time. Many business owners and developers have the option of participating in a project to rehabilitate some of Atlanta's oldest communities.

Workshops are available to help participants assist in rebuilding in Atlanta's designated 100 in-town economically challenged neighborhoods. The tax break associated with the workshop is called the Commercial Revitalization Deduction (CRD). The workshop outlines the tax program and is currently scheduled on the first and third Thursday's through October.

For details go to: www.hud.gov/crlocator to determine eligibility, or contact Lisa Hawkins at 404-522-3970. Or e-mail her at lhawkins@enterprisecommunity.org

EMS Technologies to Purchase Sky Connect

EMS Technologies Inc., a communications company based in Norcross, revealed Wednesday that it will buy Sky Connect.

Sky Connect is a Maryland-based firm that offers satellite voice and location tracking service.

The deal is worth about $15.5 million and is expected to close this year.

EMS also announced a second quarter earnings of $3.4 million, and $81.3 million in revenues.

Southern Company reports lost revenue

Southern Company, owners of Georgia Power, reported a three percent loss in revenue during their second- quarter.

The company reported second-quarter earnings to be $416.4 million. Earnings for the first six months of 2008 are $775 million, compared to $767.8 million last year.

The revenue difference is based on many factors, including slow sales, reported the company.