Showing posts with label San Francisco. Show all posts
Showing posts with label San Francisco. Show all posts

Wednesday, February 26, 2014

Asiana Airlines fined $500,000 for failing to help families after July crash.


The U.S. Department of Transportation on Tuesday fined Asiana Airlines $500,000 for failing to assist families following the crash of Asiana flight 214 in San Francisco in July.
The Korean airline was slow to publicize a phone number for families, took two full days to successfully contact the families of three-quarters of the passengers and did not contact families of several passengers until five days following the crash, authorities said.
The half-million-dollar penalty is the first time the DOT has issued a fine under a 1997 law that requires airlines to adopt and adhere to a "family assistance plan" for major accidents.
Three of the 291 passengers were killed and scores were injured when the Boeing 777 struck the seawall at San Francisco International Airport and tumbled down the runway.

"In the very rare event of a crash, airlines have a responsibility to provide their full support to help passengers and their families by following all the elements of their family assistance plans," Transportation Secretary Anthony Foxx said in a statement. "The last thing families and passengers should have to worry about at such a stressful time is how to get information from their carrier."

In the DOT order, Asiana said its job was complicated by the limited number of workers at San Francisco's airport and other circumstances. Injured passengers were sent to 13 different area hospitals, and there was no list prepared at the time to help the airline track passengers.

Hospitals also were reluctant to release information to the airline due to privacy laws, the airline said.
Asiana released a statement after the DOT fine was announced saying that it "provided extensive support to the passengers and their families following the accident and will continue to do so."
Under the Foreign Air Carrier Family Support Act of 1997, foreign air carriers assure the Department of Transportation and the National Transportation Safety Board that they will adhere to a "family assistance plan" in the event of aircraft accidents resulting in a major loss of life.
Among other things, airlines must publicize and staff a toll-free telephone number to take calls from families, notify families as soon as practical and commit sufficient resources to carry out the family assistance plan.
According to the DOT, Asiana failed to widely publicize any telephone number for family members of those on board, and the only number generally available to the public that family members could call was Asiana's toll-free reservations line.
Asiana publicized a phone number established by another entity 18 hours and 32 minutes after the crash, the DOT said.
Locating this phone number on Asiana's website required significant effort, the DOT said, and the reservations line did not include a separate menu option for calls related to the crash, requiring callers to navigate through cumbersome automated menus.
Asiana also took two days to send a sufficient number of trained personnel to San Francisco, and initially lacked an adequate number of staff able to communicate in the languages spoken by the flight's passengers, the DOT said.
According to the DOT, $400,000 of the penalty is due within 30 days. Up to $100,000 will be spent on multiple industry-wide conferences and training sessions to provide others with lessons learned from the Asiana crash aftermath.

Thursday, February 20, 2014

Facebook to buy WhatsApp for 19 bln dollars in deal shocker.


SAN FRANCISCO:  Facebook Inc will buy fast-growing mobile-messaging startup WhatsApp for $19 billion in cash and stock in a landmark deal that places the world's largest social network closer to the heart of mobile communications and may bring younger users into the fold.

The transaction involves $4 billion in cash, $12 billion in stock and $3 billion in restricted stock that vests over several years. The WhatsApp deal is worth more than Facebook raised in its own IPO and underscores the social network's determination to win the market for messaging.

Founded by a Ukrainian immigrant who dropped out of college, Jan Koum, and a Stanford alumnus, Brian Acton, WhatsApp is a Silicon Valley startup fairy tale, rocketing to 450 million users in five years and adding another million daily.

"No one in the history of the world has ever done something like this," Facebook Chief Executive Mark Zuckerberg said on a conference call on Wednesday.

Zuckerberg, who famously closed a $1 billion deal to buy photo-sharing service Instagram over a weekend in mid-2012, revealed on Wednesday that he proposed the tie-up over dinner with CEO Koum just 10 days earlier, on the night of February 9.

WhatsApp was the leader among a wave of smartphone-based messaging apps that are now sweeping across North America, Asia and Europe. Although WhatsApp has adhered strictly to its core functionality of mimicking texting, other apps, such as Line in Japan or Tencent Holdings Ltd's WeChat, offer games or even e-commerce on top of their popular messaging features.

The deal provides Facebook entree to new users, including teens who eschew the mainstream social networks but prefer WhatsApp and rivals, which have exploded in size as private messaging takes off.

"People are calling them 'Facebook Nevers,'" said Jeremy Liew, a partner at Lightspeed and an early investor in Snapchat.

How the service will pay for itself is not yet clear.

Zuckerberg and Koum on the conference call did not say how the company would make money beyond a $1 annual fee, which is not charged for the first year. "The right strategy is to continue to focus on growth and product," Zuckerberg said.

Zuckerberg and Koum said that WhatsApp will continue to operate independently, and promised to continue its policy of no advertising.

"Communication is the one thing that you have to use daily, and it has a strong network effect," said Jonathan Teo, an early investor in Snapchat, another red-hot messaging company that flirted year ago with a multibillion dollar acquisition offer from Facebook.

"Facebook is more about content and has not yet fully figured out communication."

PRICE TAG

Even so, many balked at the price tag.

Facebook is paying $42 per user with the deal, dwarfing its own $33 per user cost of acquiring Instagram. By comparison, Japanese e-commerce giant Rakuten just bought messaging service Viber for $3 per user, in a $900 million deal.

Rick Summer, an analyst with Morningstar, warned that while investors may welcome the addition of such a high-growth asset, it may point to an inherent weakness in the social networking company that has seen growth slow in recent quarters.

"This is a tacit admission that Facebook can't do things that other networks are doing," he said, pointing to the fact that Facebook had photo-sharing and messaging before it bought Instagram and WhatsApp.

"They can't replicate what other companies are doing so they go out and buy them. That's not all together encouraging necessarily and I think deals like these won't be the last one and that is something for investors to consider."

Venture capitalist Sequoia Capital, which invested in WhatsApp in February 2011 and led three rounds of financing altogether, holds a stake worth roughly $3 billion of the $19 billion valuation, according to people familiar with the matter.

"Goodness gracious, it's a good deal for WhatsApp," said Teo, the early investor in Snapchat.

Facebook pledged a break-up fee of $1 billion in cash and $1 billion in stock if the deal falls through.

Facebook was advised by Allen & Co, while WhatsApp has enlisted Morgan Stanley for the deal.

Shares in Facebook slid 2.5 percent to $66.36 after hours, from a close of $68.06 on the Nasdaq.

"No matter how you look at it this is an expensive deal and a very big bet and very big bets either work out or they perform quite poorly," Summer said. "Given the relative size, the enterprise valuations this is a very significant deal and it may not be the last one." – Reuters