ROANOKE TIMES 
                      Copyright (c) 1996, Roanoke Times

DATE: Friday, August 16, 1996                TAG: 9608160058
SECTION: BUSINESS                 PAGE: A-7  EDITION: METRO 


IN BUSINESS

Flying free getting more expensive

CHICAGO - Flying for free comes at a price nowadays.

Airlines, saddled with hundreds of millions of dollars in potential liability from burgeoning frequent flier programs, are adding new fees and restrictions that make it harder for customers to claim some of the 2 trillion miles outstanding.

Airline officials say they are making the changes to match the rules that apply to paying passengers. But critics say such moves defeat the purpose of frequent flier programs.

The nation's airlines have become more strict about enforcing rules and restrictions because it's much easier to obtain free flights nowadays without ever leaving the ground.

Agreements with an array of businesses give customers miles when they make purchases. Credit card issuers, telephone companies, even a car wash, now offer frequent flier points to customers.

Most airlines limit the number of frequent flier seats on a given airplane and restrict free travel on certain dates during the year - usually heavy travel periods. All the major carriers last year raised to 25,000 miles from 20,000 the number needed to get a coach ticket.

Despite those restrictions, 8.2 percent of United seats in 1995 last year went to frequent fliers, down just 0.9 percent from a year earlier, said spokesman Joe Hopkins.

- Associated Press

Fox interim head of visitors bureau

Catherine Fox, an eight-year employee of the Roanoke Valley Convention and Visitors Bureau, was named its acting executive director Thursday. Her appointment follows the recent resignation of Martha Mackey, who had headed the organization since 1989. Mackey will continue as a consultant to the bureau's board of directors on a temporary basis, said board President Beth Poff.

Fox most recently has been tourism development manager for the bureau. She is also president of the Blue Ridge Parkway Association and president-elect of the Shenandoah Valley Travel Association.

The executive director position is being advertised in national convention trade publications, and Poff said she already has received about 20 resumes.

Poff said the bureau board hopes to made a decision on a director by Nov. 1. Fox has not applied for the position, she said.

The job will be advertised locally in September, Poff said.

- Staff report

Honda may get civil penalty

ARLINGTON, - Federal safety regulators plan to ask the Justice Department to seek civil penalties against Honda Motor Co. Ltd. for allegedly withholding information about potentially faulty seat belts, USA Today reported Thursday.

The paper said the allegations arise from the recall last year of 8.9 million cars and light trucks, sold by Honda and several other automakers, that had seat belts made by the Japanese supplier Takata Corp.

USA Today said the National Highway Traffic Safety Administration believes Honda knew there were safety problems with the seat belts, but failed to notify the government, as required by law.

``It is a speculative story, and we have no comment,'' NHTSA spokesman Barry McCahill said.

- Associated Press

Grant will help Scott County

WEBER CITY - The Southwest Virginia Agricultural Association has received a $324,000 federal grant to establish a farmers' market in Scott County.

``While farmers in our region have the ability to grow crops such as tomatoes, broccoli and green peppers, at the present time they have a very limited ability to market the produce,'' Rep. Rick Boucher, D-Abingdon, said Wednesday.

The federal money comes from a Rural Business Enterprise Grant from the U.S. Department of Agriculture. It is being provided to the Southwest Virginia Agricultural Association, a nonprofit corporation with representation from all Southwest Virginia counties.

Boucher said Southwest Virginia needs a regional farmers' market to provide access to grocery store chains that do not purchase from individual growers.

- Associated Press


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