Bill would allow papers to operate as nonprofit organizations

As a growing number of American newspapers halt daily publication or threaten to do so, U.S. Sen. Benjamin Cardin introduced legislation Tuesday that would allow newspapers to operate as nonprofit organizations, providing significant tax breaks to the struggling industry.

Cardin, D-Md., said the decline of newspapers represents “a real tragedy for communities across the nation and for our democracy.”

Under the proposal, newspapers could operate as nonprofits, if they chose to do so, claiming 501(c)(3) status for educational purposes, similar to public broadcasting.

Advertising and subscription revenue would be tax-exempt, and contributions to support coverage or operations could be tax-deductible.

Geneva

International forecast for airlines sees steeper losses than earlier

World airlines will lose $4.7 billion this year due to the economic crisis, while revenues will drop by more than after the Sept. 11, 2001 terrorist attacks in the U.S., a major industry association predicted Tuesday.

The revised loss estimate, nearly double the previous forecast issued in December, reflects “the rapid deterioration of the global economic conditions,” said the International Air Transport Association.

Revenues are expected to fall by $62 billion, or 12 percent, to $467 billion, the association said.

Running counter to the trend in the outlook is North America, where carriers are expected to deliver the best performance with a combined $100 million profit for the year, the association said.

“A 7.5 percent fall in demand is expected to be matched by a 7.5 percent cut in capacity,” IATA said.

New York

Goldman Sachs hopes to repay $10 billion from feds soon

Goldman Sachs Group Inc. said Tuesday it hopes to return its $10 billion investment from the government as soon as possible.

Goldman Sachs spokesman Lucas Van Praag said late Tuesday the bank wants to pay the money back as soon as possible, but that the company needs the approval of federal regulators first.

The main reason for the bank’s desire to return the money is that it doesn’t need the funds, Van Praag said, adding that Goldman had more than $100 billion in cash sitting on its balance sheet as of the end of November.

From wire reports