IN BRIEF
NEW YORK
CityCenter condos seen as tough sell
A gaming analyst said MGM Mirage is facing a tough task when the company moves ahead with the planned sales closings of its luxury high-rise condominiums at the $8.5 billion CityCenter development later this year.
In a report to clients Monday, Las Vegas-based Union Gaming Group said it evaluated eight-and-a-half years of high-rise residential data from 16 Strip projects, five of which are condo-hotel.
"As one might expect, our findings would certainly indicate a market that is anemic at best," Union Gaming Group principal Bill Lerner said.
Union Gaming said prices have not declined significantly at the Palms Place or Trump International (anywhere from 8 percent to 18 percent). But at the three MGM Signature towers, where all sales are either resales or repossessions, pricing is down 70 percent.
"Quite simply, sales have been almost non-existent," Lerner said. He added that condominium projects are selling at an average of two units per month. "Difficulty in acquiring financing is part of the problem, therefore we believe most current buyers are cash buyers."
Light Group to run four venues in CityCenter
Hospitality management firm The Light Group says it plans to run four venues inside the main hotel-casino of CityCenter, the $8.5 billion complex on the Las Vegas Strip.
The Las Vegas-based firm said Monday that it plans to run a restaurant, lounge, nightclub and pool at the Aria Resort & Casino, expected to open in December.
The Light Group says Union Restaurant & Lounge will feature contemporary American food.
Its Liquid pool will open in spring 2010 with pools including underwater speakers.
The group says it also will manage Haze Nightclub and The Deuce Lounge, a smaller bar with high-limit gambling.
DALLAS
Airline faces deadline to settle parts dispute
Southwest Airlines Co., facing a deadline of today to settle a dispute with regulators over the use of unapproved parts, said Monday the parts were installed on almost twice as many planes as it first believed.
The airline also has suspended the maintenance firm that got the parts from a subcontractor.
Southwest said Monday it has replaced the unapproved parts in more than 25 planes but needs more time to find parts for the remaining jets and avoid a disruption in its service to its customers. Without an extension, the Federal Aviation Administration could force the airline to ground some planes.
FAA officials have said the unapproved parts -- designed to push hot engine exhaust away from the wings -- didn't pose an immediate safety hazard. On Aug. 22, they gave Southwest 10 days to fix the problem.
HOUSTON
Baker Hughes will acquire BJ Services
Oilfield services company Baker Hughes Inc. said Monday that it will buy BJ Services Co. in a cash-and-stock deal valued at $5.5 billion to diversify the services it offers and compete better with industry leaders.
Baker Hughes customers will get a one-stop shop for a variety of services. Notably BJ Services' pressure pumping business will go to Baker Hughes, which will help clients with unconventional gas and deepwater fields, said Chad Deaton, Baker Hughes chairman, president and CEO.
