Armstrong better, Green Day to resume tour in 2013

LOS ANGELES (AP) — Green Day is going back on the road.

The Grammy-winning punk band announced new tour dates Monday.

The band canceled the rest of its 2012 club schedule and postponed the start of a 2013 arena tour after singer-guitarist Billie Joe Armstrong's substance abuse problems emerged publicly in September when he had a profane meltdown on the stage of the iHeartRadio Music Festival in Las Vegas. The band's rep announced later that Armstrong was headed to treatment for substance abuse.

"I just want to thank you all for the love and support you've shown for the past few months," Armstrong told fans in a statement Monday. "Believe me, it hasn't gone unnoticed and I'm eternally grateful to have such an amazing set of friends and family. I'm getting better every day. So now, without further ado, the show must go on."

The tour is scheduled to begin March 28 at the Allstate Arena in the Chicago area. Tickets for postponed shows will be honored on the new dates, and refunds will be available for canceled shows.

"We want to thank everyone for hanging in with us for the last few months," the band said. "We are very excited to hit the road and see all of you again, though we regret having to cancel more shows."

The band released their most recent album, "Tre," on Dec. 11, more than a month ahead of schedule.

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Online:

http://www.greenday.com/

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Tribune Co. emerges from bankruptcy

The last day of 2012 is the first of a new era for Tribune Co.

After spending more than four years embroiled in a contentious Chapter 11 bankruptcy case, the reorganized Chicago-based media company emerged Monday under new owners and a newly appointed board, freed from its massive debt and facing an uncertain future.

Senior creditors Oaktree Capital Management, Angelo, Gordon & Co. and JPMorgan Chase & Co. are set to take control of Tribune Co.’s storied portfolio of publishing and broadcasting assets, including the Chicago Tribune, officials said.

It was an almost anticlimactic end to a long and painful chapter in Tribune Co.'s 165-year history. Late Sunday, the new Tribune Co. named its board of directors, filed notification with the Delaware bankruptcy court where the bulk of legal wrangling took place and declared its existence.

"It took a long time to get here," said Ken Liang, a managing director at Oaktree and a new member of the board. "It was a tough restructuring. We're pretty excited about the exit."

The new board also will include Tribune Co. CEO Eddy Hartenstein; Ross Levinsohn, who recently left as interim chief executive of Yahoo Inc.; Craig Jacobson, a well-known entertainment lawyer; Peter Murphy, a former strategy executive at Walt Disney Co. and Ceasars Entertainment; Bruce Karsh, Oaktree president; and Peter Liguori, a former top television executive at Fox and Discovery.

Liguori is expected to be named chief executive of Tribune Co. going forward.

Hartenstein, who is publisher of the Los Angeles Times, has been CEO of Tribune Co. since May 2011. He will remain in the role until the board convenes its first meeting in the next several weeks, where it will name the company’s executive officers, according to a company statement.

“Tribune will emerge from the bankruptcy process as a multi-media company with a great mix of profitable assets, strong brands in major markets and a much-improved capital structure,” Hartenstein said in the statement.

Tribune Co. owns 23 television stations, including WGN-Ch. 9, WGN America, eight daily newspapers and other media assets, all of which the reorganization plan valued at $4.5 billion after cash distributions and new financing. Eventually, all the assets are expected to be sold, according to the new owners.

They take the reins of a company that saw its worth essentially cut in half since 2007, when Chicago billionaire Sam Zell took it private in an $8.2 billion leveraged buyout. The rapid decline was mostly due to falling newspaper valuations in the face of digital competition. The anticipated hiring of Liguori suggests that broadcasting will be the operational focus going forward, according to several media analysts.

Los Angeles-based Oaktree, the largest shareholder, with about 23 percent of the equity, appointed two of seven board members. Both Angelo Gordon and JPMorgan have roughly a 9 percent stake and appointed one seat each. The three jointly appointed two more board members, with the final seat occupied by the chief executive.

Among the outgoing board members is Zell, whose deal was seen at the time as an alternative to the squabbles within Tribune Co. that threatened to break apart the then-publicly traded company. But the Great Recession and plummeting advertising revenues across all media, especially the struggling newspaper industry, made the company’s resulting $13 billion debt load untenable.

Tribune Co. filed for Chapter 11 bankruptcy protection in December 2008. Zell blamed a “perfect storm” of industry and economic forces. But the bankruptcy case turned on charges leveled by junior creditors that saddling the company with such a debt burden left it insolvent from the outset.

Led by an aggressive distressed debt fund called Aurelius Capital Management, the junior creditors pressed litigation that stretched out the case for three and a half years in a Delaware court before U.S. Bankruptcy Judge Kevin Carey confirmed the reorganization plan in July. An emergency appeal to stay that decision was dismissed by the 3rd U.S. Circuit Court of Appeals in September. In November, the Federal Communications Commission signed off on waivers needed to transfer Tribune Co.’s broadcast properties to the new ownership, clearing the last hurdle to its emergence from Chapter 11.

“Usually, bankruptcy cases like this take much less time and cost less money,” said Douglas Baird, a bankruptcy expert and law professor at the University of Chicago.

Baird said legal fees for most large corporate bankruptcies run 3 to 4 percent of the company’s total worth. The Tribune Co. case, which will likely cost the company more than $500 million in legal and other professional fees, was more than twice that percentage, due to both the extended litigation and the company’s declining valuation.

Before cash distributions and new financing, a 2012 analysis by financial adviser Lazard valued the broadcasting assets, including the TV stations, WGN-AM 720, CLTV and national cable channel WGN America, at $2.85 billion. Other strategic assets, such as online job site CareerBuilder and cable channel Food Network, are worth $2.26 billion.

Tribune Co.’s newspaper holdings, including the Tribune, Los Angeles Times and six other daily publications, have withered to $623 million in total value, according to Lazard. In 2006, entertainment mogul David Geffen made a $2 billion cash offer for the Los Angeles Times.

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Bears stay alive by beating Lions, need help from Packers

Jay Glazer looks ahead to coaching decisions.

The Chicago Bears did their part Sunday, beating the Detroit Lions 26-24. Now they need help from the Green Bay Packers, who must beat the Minnesota Vikings to send the Bears into the playoffs.

Coach Lovie Smith said the team would be monitoring the Packers-Vikings game closely as they made their way back to Chicago.

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"We'll just keep our fingers crossed and 'go, Pack, go," Smith said.

Jay Cutler hit 18 of 31 passes for 257 yards and a touchdown, Matt Forte rushed for 103 yards on 24 carries and the Bears' defense and special teams forced four turnovers to help tame the Lions.

"We're getting turnovers again; we have to limit our turnovers and we did that today," Cutler said.

Lions receiver Calvin Johnson, who came in needing 108 yards to reach 2,000 on the season, was held to 72 on five catches.

"It's hard to shut down Calvin Johnson completely," Smith said. "We wanted to get a lot of people on him, roll the coverage up, double-team him as often as we could. So we did a pretty good job of not letting him get the big one."

The victory didn't come easily. The Lions cut the Bears' lead to 26-24 on a 9-yard Matthew Stafford pass to Brian Robiskie with 6:55 to play in the game. The nine-play, 80-yard drive was kept alive by an unnecessary roughness penalty on linebacker Lance Briggs for a hit on a sliding Stafford.

Olindo Mare's fourth field goal -- this one from 20 yards out -- boosted the Bears' lead to 26-17 with 10:47 left. It capped an 11-play, 59-yard drive that took 4:25 off the clock.

Mare's 28-yard field goal increased the Bears' lead to 23-17 with 1:50 left in the third quarter. The score was set up when safety Major Wright came up with the Lions' fourth turnover of the day, recovering a Mikel Leshoure fumble at the Detroit 13.

Detroit fought back and trimmed the Bears' once-commanding lead to 20-17 with a 10-yard TD pass from Matthew Stafford to Will Heller at the 6:35 mark of the third quarter.

The Lions cut the Bears' lead to 20-10 just before halftime, as Stafford hit Kris Durham on a 25-yard TD pass with 12 seconds to play before intermission.

Mare's 40-yard field goal extended the Bears' lead to 20-3 with 1:49 to play.

Tim Jennings made his league-high ninth interception with 2:38 left in the half to put the Bears' offense back in business inside Lions territory.

Forte's 1-yard touchdown run -- after a pass-interference call against Detroit drawn by Brandon Marshall -- gave the Bears a 17-3 lead with 3:26 to go in the first half.

The Bears' defense delivered again to set up the score. Israel Idonije knocked the ball from quarterback Matthew Stafford's hand and Julius Peppers recovered on the Lions' 10-yard line.

Mare's 33-yard field goal gave the Bears a 10-3 lead with 2:59 left in the first quarter. Joe Anderson forced a fumble on the kickoff after the Bears' first score and Eric Weems recovered, setting up Mare's kick.

Mare blew a chance to extend the lead, missing a 43-yard attempt wide right with just under five minutes remaining in the half.

The Bears grabbed a 7-3 lead when Earl Bennett caught a screen pass from Cutler and took it 60 yards for a touchdown with 4:33 left in the first quarter.

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Apple loses another copyright lawsuit in China: Xinhua

SHANGHAI (Reuters) - A Chinese court has fined Apple Inc 1 million yuan ($160,400) for hosting third-party applications on its App Store that were selling pirated electronic books, the official Xinhua news agency reported on Friday.

Apple is to pay compensation to eight Chinese writers and two companies for violating their copyrights, the Beijing No.2 Intermediate People's Court ruled on Thursday, Xinhua said.

Earlier in the year, a group of Chinese authors filed the suit against Apple, saying an unidentified number of apps on its App Store sold unlicensed copies of their books. The group of eight authors was seeking 10 million yuan in damages.

"We are disappointed at the judgment. Some of our best-selling authors only got 7,000 yuan. The judgment is a signal of encouraging piracy," Bei Zhicheng, a spokesman for the group, told Reuters.

Apple said in a statement that it takes copyright infringement complaints "very seriously".

"We're always updating our service to better assist content owners in protecting their rights," Apple spokeswoman Carolyn Wu said.

China has the world's largest Internet and mobile market by number of users, but piracy costs software companies billions of dollars each year.

Apple, whose products enjoy great popularity in China, has faced a string of legal headaches this year. In July, Apple paid 60 million yuan to a Chinese firm, Proview Technology, to settle a long-running lawsuit over the iPad trademark in China.

($1 = 6.2360 Chinese yuan)

(Reporting by Shanghai Newsroom and Melanie Lee; Editing by Kazunori Takada and Matt Driskill)

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NHL, union likely to return to table Monday

NEW YORK (AP) — The NHL and the players' association are ready to get back to the bargaining table.

There were no formal negotiations Sunday, but all signs pointed to talks on Monday in an effort to end the lockout and save the season.

"There will be no further face-to-face meetings today," the union said in a statement Sunday. "The plan is for the sides to meet tomorrow."

Those would be the first negotiations since the sides met with a federal mediator Dec. 13.

The league and the union had informational discussions — by conference call and in meetings — with staff members that lasted much of Saturday and concluded Sunday. Those talks were spurred by the nearly 300-page contract proposal the NHL presented to the union Thursday.

All games through Jan. 14 have been canceled, claiming more than 50 percent of the original schedule. The NHL wants to reach a deal by Jan. 11 and open the season Jan. 19, with a 48-game schedule.

Bargaining sessions with only the NHL and union haven't been held since Dec. 6, when talks abruptly ended after the players' association made a counterproposal to the league's previous offer. The league said that offer was contingent on the union accepting three elements unconditionally and without further bargaining.

The NHL then pulled all existing offers off the table. Two days of sessions with mediators the following week ended without progress.

A person familiar with key points of the offer told The Associated Press that the league proposed raising the limit of individual free-agent contracts to six years from five — seven years if a team re-signs its own player; raising the salary variance from one year to another to 10 percent, up from 5 percent; and one compliance buyout for the 2013-14 season that wouldn't count toward a team's salary cap but would be included in the overall players' share of income.

The person spoke on condition of anonymity because details of the new offer weren't being discussed publicly.

The NHL maintained the deferred payment amount of $300 million it offered in its previous proposal, an increase from an earlier offer of $211 million. The initial $300 million offer was pulled after negotiations broke off this month.

The latest proposal is for 10 years, running through the 2021-22 season, with both sides having the right to opt out after eight years.

If this offer doesn't quickly lead to a new collective bargaining agreement, the next round of cuts could claim the entire schedule.

The NHL is the only North American professional sports league to cancel a season because of a labor dispute, losing the 2004-05 campaign to a lockout. A 48-game season was played in 1995 after a lockout stretched into January.

It is still possible this dispute could eventually be settled in the courts if the sides can't reach a deal on their own.

The NHL filed a class-action suit this month in U.S. District Court in New York in an effort to show its lockout is legal. In a separate move, the league filed an unfair labor practice charge with the National Labor Relations Board, contending bad-faith bargaining by the union.

Those moves were made because the players' association took steps toward potentially filing a "disclaimer of interest," which would dissolve the union and make it a trade association. That would allow players to file antitrust lawsuits against the NHL.

Union members voted overwhelmingly to give their board the power to file the disclaimer by Wednesday. If that deadline passes, another authorization vote could be held to approve a later filing.

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‘The Hobbit’ stays atop box office for third week

LOS ANGELES (AP) — “The Hobbit: An Unexpected Journey” continues to rule them all at the box office, staying on top for a third-straight week with nearly $ 33 million.

The Warner Bros. fantasy epic from director Peter Jackson, based on the J.R.R. Tolkien novel, has made $ 222.7 million domestically alone.

Two big holiday movies — and potential awards contenders — also had strong openings. Quentin Tarantino‘s spaghetti Western-blaxploitation mash-up “Django Unchained” came in second place for the weekend with $ 30.7 million. The Weinstein Co. revenge epic, starring Jamie Foxx and Christoph Waltz, has earned $ 64 million since its Christmas Day opening.

And in third place with $ 28 million was the sweeping, all-singing “Les Miserables.” The Universal Pictures musical starring Hugh Jackman and Anne Hathaway has made $ 67.5 million since debuting on Christmas.

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Kenya hospital imprisons new mothers with no money

NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.

Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.

Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.

"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."

"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."

The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.

Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.

"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.

She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.

A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.

"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.

Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.

One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.

Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.

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Associated Press reporter Tom Odula contributed to this report.

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'The Hobbit' stays atop box office for third week

LOS ANGELES (AP) — "The Hobbit: An Unexpected Journey" continues to rule them all at the box office, staying on top for a third-straight week and capping a record-setting $10.8 billion year in moviegoing.

The Warner Bros. fantasy epic from director Peter Jackson, based on the beloved J.R.R. Tolkien novel, made nearly $33 million this weekend, according to Sunday studio estimates, despite serious competition from some much-anticipated newcomers. It's now made a whopping $686.7 million worldwide and $222.7 million domestically alone.

Two big holiday movies — and potential Academy Awards contenders — also had strong openings. Quentin Tarantino's spaghetti Western-blaxploitation mash-up "Django Unchained" came in second place for the weekend with $30.7 million. The Weinstein Co. revenge comedy, starring Jamie Foxx as a slave in the Civil War South and Christoph Waltz as the bounty hunter who frees him and then makes him his partner, has earned $64 million since its Christmas Day opening.

And in third place with $28 million was the sweeping, all-singing "Les Miserables," based on the international musical sensation and the Victor Hugo novel of strife and uprising in 19th century France. The Universal Pictures film, with a cast of A-list actors singing live on camera led by Hugh Jackman, Anne Hathaway and Russell Crowe has made $67.5 million domestically and $116.2 worldwide since debuting on Christmas.

Additionally, the smash-hit James Bond adventure "Skyfall" has now made $1 billion internationally to become the most successful film yet in the 50-year franchise, Sony Pictures announced Sunday. The film stars Daniel Craig for the third time as the iconic British superspy.

"This is a great final weekend of the year," said Paul Dergarabedian, an analyst for box-office tracker Hollywood.com. "How perfect to end this year on such a strong note with the top five films performing incredibly well."

The week's other new wide release, the Billy Crystal-Bette Midler comedy "Parental Guidance" from 20th Century Fox, made $14.8 million over the weekend for fourth place and $29.6 million total since opening on Christmas.

Dergarabedian described the holding power of "The Hobbit" in its third week as "just amazing." Jackson shot the film, the first of three prequels to his massively successful "Lord of the Rings" series, in 48 frames per second — double the normal frame rate — for a crisper, more detailed image. It's also available in the usual 24 frames per second and both 2-D and 3-D projections.

"I think people are catching up with the movie. Maybe they're seeing it in multiple formats," he said. "I think it's just a big epic that feels like a great way to end the moviegoing year. There's momentum there with this movie."

"Django Unchained" is just as much of an epic in its own stylishly violent way that's quintessentially Tarantino. Erik Lomis, The Weinstein Co.'s president of theatrical distribution, said the opening exceeded the studio's expectations.

"We're thrilled with it, clearly. We knew it was extremely competitive at Christmas, particularly when you look at the start 'Les Miz' got. We were sort of resigned to being behind them. The fact that we were able to overtake them over the weekend was just great," Lomis said. "Taking nothing away from their number, it's a tribute to the playability of 'Django.'"

"Les Miserables" went into its opening weekend with nearly $40 million in North American grosses, including $18.2 on Christmas Day. That's the second-best opening ever on the holiday following "Sherlock Holmes," which made $24.9 million on Christmas 2009. Tom Hooper, in a follow-up to his Oscar-winner "The King's Speech," directs an enormous, ambitious take on the beloved musical which has earned a CinemaScore of "A'' from audiences and "A-plus" from women.

Nikki Rocco, Universal's head of distribution, said the debut for "Les Miserables" also beat the studio's expectations.

"That $18.2 million Christmas Day opening — people were shocked ... This is a musical!" she said. "Once people see it, they talk about how fabulous it is."

It all adds up to a record-setting year at the movies, beating the previous annual record of $10.6 billion set in 2009. Dergarabedian pointed out that the hits came scattered throughout the year, not just during the summer blockbuster season or prestige-picture time at the end. "Contraband," ''Safe House" and "The Vow" all performed well early on, but then when the big movies came, they were huge. "The Avengers" had the biggest opening ever with $207.4 million in May. The raunchy comedy "Ted" and comic-book behemoth "The Dark Knight Rises" both found enormous audiences. And Paul Thomas Anderson's challenging drama "The Master" shattered records in September when it opened on five screens in New York and Los Angeles with $736,311, for a staggering per-screen average of $147,262.

"We were able to get this record without scratching and clawing to a record," he said.

Estimated ticket sales for Friday through Sunday at U.S. and Canadian theaters, according to Hollywood.com. Where available, latest international numbers are also included. Final domestic figures will be released Monday.

1. "The Hobbit: An Unexpected Journey," $32.9 million ($106.5 million international).

2."Django Unchained," $30.7 million.

3."Les Miserables," $28 million ($38.3 million international).

4."Parental Guidance," $14.8 million ($7 million international).

5."Jack Reacher," $14 million ($18.1 million).

6."This Is 40," $13.2 million.

7."Lincoln," $7.5 million.

8."The Guilt Trip," $6.7 million.

9."Monsters, Inc. 3-D," $6.4 million.

10."Rise of the Guardians," $4.9 million ($11.6 million).

___

Estimated weekend ticket sales at international theaters (excluding the U.S. and Canada) for films distributed overseas by Hollywood studios, according to Rentrak:

1."The Hobbit: An Unexpected Journey," $106.5 million.

2."Life of Pi," $39.2 million.

3."Les Miserables," $38.3 million.

4."Wreck-It Ralph," $20.4 million.

5."Jack Reacher," $18.1 million.

6."Rise of the Guardians," $11.6 million.

7."Parental Guidance," $7 million.

8."The Tower," $6.6 million.

9."Pitch Perfect," $6.2 million.

10."De L'autre Cote Du Periph," $4 million.

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Online:

http://www.hollywood.com

http://www.rentrak.com

___

Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.

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Airlines' plans for 2013 up in the air

Airfares will be on the rise in 2013, and those niggling airline fees will metamorphose into optional bundles of services.

Meanwhile, onboard amenities, such as Internet access, entertainment options and refreshed interiors, will abound among U.S. carriers, but tight seating in coach probably won't improve.

And 2013 might be the year you'll finally be able to keep your smartphone, iPad or Kindle turned on during takeoffs and landings.

Those are some of the predictions airline industry experts foresee in the new year. Here's the lowdown on fares, fees and flight experience for 2013.

Higher fares forecast

Airlines pushed through six fare increases in 2012. Expect a similar number in the new year, said Rick Seaney, co-founder of FareCompare.com.

"I wouldn't be surprised to see airfares rise like they did this year, between 3 and 6 percent domestically," Seaney said. That's because airlines will succeed in properly balancing supply and demand by trimming the number of seats they offer to match "decent, but bordering on tepid, demand."

Fares are typically driven by four main factors: competition, most of all, then supply, demand and oil prices. "If you look at those drivers, they are, for the most part, on the airlines' side, which gives them pricing power," Seaney said.

That doesn't mean there won't be good airfare deals on some flights on some routes. And consumers will still see lower prices during off-peak days, such as Tuesday, Wednesday and Saturday departures and off-peak seasons, such as late January and early February. Like this year, summertime fares probably will stay relatively high, he said.

Airline mergers can also affect fares, and a huge one could take place early in 2013. American Airlines and US Airways are in talks about combining.

The general consensus among consumer advocates is that airline mergers aren't good for passengers.

"Any time you have two big airlines merging, that means consumers have less choice and competition is reduced, which only translates to higher prices," said Charlie Leocha, director of the Consumer Travel Alliance.

However, a bit of new evidence bucks that conventional wisdom. Despite four mega-mergers in the U.S. airline industry during the past seven years, fares have not increased significantly, just 1.8 percent per year, according to a December report from professional services firm PwC. In fact, average domestic fares decreased 1 percent from 2004 to 2011 when inflation is factored in, the report found.

Fliers know full well, however, that the fare isn't all that counts nowadays. There are those fees.

Fees get a makeover

The most noticeable trend in recent years with airline fees is that there are more of them: fees for checked bags, aisle seats, onboard meals, among many others. 

"What we hear is that people pay their fare and get to the airport and feel they're constantly being nickeled-and-dimed to death for things that used to be included," said Kate Hanni, founder of FlyersRights.org. 

The top five U.S. carriers alone generated more than $12 billion in fees in 2011, with even more expected through 2012, according to the PwC report.

What consumers call fees, airlines call "unbundling" — making a la carte choices from services that used to be included in the fare.

A likely trend for 2013 might be called "rebundling," airlines packaging a few now-optional services and charging for a tier of service.

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Expectations low for White House 'fiscal cliff' meeting

Roberta Rampton and Mark Felsenthal




Reuters

4:02 p.m. CST, December 28, 2012

WASHINGTON (Reuters) - President Barack Obama met congressional leaders on Friday but there was little sign of progress in resolving their differences over the U.S. federal budget and striking a "fiscal cliff" deal before January 1.

Obama was not planning to make a new offer, a source familiar with the meeting said as the hour-long talks got under way. None of the participants made statements to the media immediately after the summit at the White House ended.

U.S. stocks fell for a fifth straight day, dropping 1 percent as the federal government edged closer to the "fiscal cliff" with no solution in sight.

Members of Congress are increasingly looking at the period straight after the December 31 deadline to come up with a retroactive fix to avoid steep tax increases and sharp spending cuts that economists have said could plunge the country into another recession.

With taxes on all Americans set to rise when rates established under former President George W. Bush expire on New Year's Eve, lawmakers would be able to come back in January and take a more politically palatable vote to cut some of the tax rates.

The president met Senate Majority Leader Harry Reid, Senate Minority Leader Mitch McConnell, House Speaker John Boehner and House Minority Leader Nancy Pelosi - the first time the group has met together since November.

If congressional leaders objected to his plan, Obama was planning to ask them for a viable counterproposal, the source said. If lawmakers had no alternative approach, Obama was seeking an up-or-down vote in Congress on his plan, the source said.

(Additional reporting by Richard Cowan, Thomas Ferraro and Rachelle Younglai; Writing by Alistair Bell; Editing by Todd Eastham)

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