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Subject: United We Fall?
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To view this newsletter in full-color, visit:
http://newsletter.mediaunspun.com/index000018904.cfm

MEDIA UNSPUN
What the Press is Reporting and Why (www.mediaunspun.com)
-----------------------------------------------------------------
August 13, 2002

-----------------------------------------------------------------
IN THIS ISSUE
-----------------------------------------------------------------
* UNITED WE FALL?
* SLEEPING WITH THE PENGUIN
* OTHER STORIES

Media Unspun serves business news and analysis, authoritatively
and irreverently, every business day. An annual subscription
costs $50, less than a dollar a week. If your four-week free
trial is coming to an end soon, please visit
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UNITED WE FALL?
-----------------------------------------------------------------
US Airways scored a $500 million bankruptcy court bailout.
American Airlines announced a re-org. United Airlines' parent
company's stock sank on speculation that UAL is next in line for 
Chapter 11. It's a wonder none of this happened last September,
but it's not much consolation to airline employees,
shareholders, and customers that it's happening now.

The Wall Street Journal had the most extensive coverage of
American's plan as of Unspun's deadline. The airline will lay
off 7,000 workers, ground some jets, cut back on flight
amenities such as food, and retool its hub operations to make
for longer layovers. "In the past, airlines were loath to have
longer connection times because flights were listed in travel
agents' computers by elapsed time," said the Journal. "Now,
online booking tools and search engines most often list flights
by price, not time." In this age of penny-pinching, American's
worried about low-cost carriers, not the big guys like, um, US
Air and United. 

Speaking of United, it's hard to come up with a verb for its
parent company's stock that doesn't invoke an air disaster.
Let's just say it didn't go up yesterday. The $3.80 share price
may be the least of UAL's worries while it waits for an
increasingly unlikely $1.8 billion loan from the Air
Transportation Stabilization Board. "The ATSB expects an
applicant's workers, suppliers and creditors to make concessions 
to help the airline repay the loans and thus protect U.S.
taxpayers' interests," said the L.A. Times. Sounds nice for
uninvolved taxpayers but not so good to some of United's unions, 
which are balking at a wage cut. Workers did enough by deferring 
$498 million in retroactive pay this year, said the
36,000-member machinists' union. Analysts moaned in anti-labor
frustration. 

The basic problem here is too many empty airplane seats, and
non-U.S. outlets didn't have a lot of sympathy. "The U.S.
government has bailed out carriers with insurance subsidies and
federal loan guarantees" while "European authorities have acted
more wisely," letting Swissair and Sabena "go to the wall," said 
the Financial Times. Canadian pundits agreed that America should 
let a couple of airlines wilt, since the Canadian airline
industry benefited from the demise of Canadian Airlines and
Canada 3000. Paging Charles Darwin to the white courtesy
phone... - Jen Muehlbauer

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identity management in Release 1.0. Learn more about the
expanding market for these services and applications.
http://release1.edventure.com/executivesummary.cfm?MCode=Unspun

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SLEEPING WITH THE PENGUIN
-----------------------------------------------------------------
The LinuxWorld Conference and Expo, which opened yesterday in
San Francisco, will host two of the strangest bedfellows ever to 
lie down with a stuffed penguin: Microsoft and Sun. These are
companies that once referred to Linux as a "bathtub of code"
(Sun) and "a cancer" (Microsoft), according to Sun's hometown
paper the San Jose Mercury News.

Both companies are taking Linux seriously despite the absolute
numbers. By January 2, 2001, Microsoft had made as much on
server software as all Linux vendors put together would reap in
the entire year.

Honors for the best attention-grabber on Microsoft's presence at 
the show go to Brier Dudley, who opened his piece for the
Seattle Times this way: "Microsoft executive Peter Houston
wasn't too worried about the reception he'd get at LinuxWorld
... until he heard about the pie cannon."

Wired informed us that the section of LinuxWorld where Microsoft 
will be holding the fort is dubbed the Rookery -- "a place where 
you can watch companies hatch and grow right before your eyes,"
deadpanned reporter Michelle Delio, quoting Microsoft's Houston: 
"Hatching isn't exactly on the agenda, but I certainly hope to
grow."

Turning to Sun, Unspun notes that five years ago a joke press
release circulated on the Net claiming that Linux creator Linus
Torvalds, then still living in Finland, was moving to Silicon
Valley to work for Sun. The joke was that Sun had decided to
scrap its Solaris operating system and instead concentrate on a
version of Linux, to be called "Solinux." How time does make
April fools of us all: Linus Torvalds is now thriving in Silicon 
Valley (at Transmeta), and yesterday Sun Microsystems
demonstrated Sun Linux 5.0. and introduced its first
general-purpose servers running Linux.

The Merc ran a comprehensive wrap of Sun's evolving attitude
toward the upstart operating system. Sun has little choice but
to embrace Linux, wrote reporter Therese Poletti, because some
of its traditional Wall Street customers were deserting it.
"Several investment banks have tossed out whole sections of Sun
servers and replaced them with Intel-based servers running
Linux," Poletti reported. And you thought Microsoft hated Linux? 
- Keith Dawson

Linux expo has come a long way
http://www.siliconvalley.com/mld/siliconvalley/3847040.htm

Microsoft changes its tune toward Linux (Seattle Times)
http://makeashorterlink.com/?Q12B23181

Microsoft Puts On the Tux 
http://www.wired.com/news/linux/0,1411,54489,00.html

(Hoax press release on "Solinux")
http://www.ibiblio.org/dbarberi/fools/classic/1997/sun-pr.html

Sun to name Linux-Solaris chief 
http://news.com.com/2100-1001-949469.html

Sun Microsystems flexes Linux to jab at Microsoft (Seattle
Times)
http://makeashorterlink.com/?A25B52181

Microsoft and Free Software at the Same Show? It's True
http://www.nytimes.com/2002/08/10/technology/10LINU.html

Linux begins its descent into the enterprise
http://www.internetnews.com/ent-news/article.php/1443811

-----------------------------------------------------------------
OTHER STORIES
-----------------------------------------------------------------
Ex-CEO Pleads Not Guilty to ImClone Fraud
http://www.washingtonpost.com/wp-dyn/articles/A10407-2002Aug12.html

Security flaw found in Microsoft Web browser (Reuters)
http://www.philly.com/mld/philly/business/technology/3851394.htm

Fed seen leaving rates unchanged
http://www.msnbc.com/news/793177.asp

Some Sad No-Signs of the Times 
http://www.businessweek.com/bwdaily/dnflash/aug2002/nf20020813_0067.htm

Publisher dodges bankruptcy bullet
http://www.chicagotribune.com/business/chi-020812ziff.story

Gates Foundation Walks Fine Line As It Increases Its Cable
Holdings
http://online.wsj.com/article/0,,SB1029180416481589035,00.html
(Paid subscription required.)

PGP defect reveals encrypted messages
http://news.com.com/2100-1001-949368.html

Bell Labs simplifies single sign-on
http://www.theregister.co.uk/content/55/26624.html

Bigger Bar Code Inches Up on Retailers
http://www.nytimes.com/2002/08/12/technology/12CODE.html

Damn the Constitution: Europe must take back the Web
http://www.theregister.co.uk/content/6/26612.html

Japanese Drop Out of New ID System (Newsday, AP)
http://makeashorterlink.com/?T69B22181

-----------------------------------------------------------------
Do you want to reach the Net's savviest audience?
Advertise in Media Unspun.
Contact Erik Vanderkolk for details at erikvanderkolk@yahoo.com 
today.

-----------------------------------------------------------------
STAFF
-----------------------------------------------------------------
Written by Deborah Asbrand (dasbrand@world.std.com), Keith
Dawson (dawson@world.std.com), Jen Muehlbauer
(jen@englishmajor.com), and Lori Patel (loripatel@hotmail.com).

Copyedited by Jim Duffy (jimduffy86@yahoo.com). 

Marketing: Cowpoke Productions (cowpokeproductions.com.
Advertising: Erik Vanderkolk (erikvanderkolk@yahoo.com). 

Editor and publisher: Jimmy Guterman (guterman@vineyard.com).

Media Unspun is produced by The Vineyard Group Inc. 
Copyright 2002 Media Unspun, Inc., and The Vineyard Group, Inc.
Subscribe already, willya? http://www.mediaunspun.com 

Redistribution by email is permitted as long as a link to
http://newsletter.mediaunspun.com is included.

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<font face="verdana,arial" size="2"><br><FONT face=Arial size=4><STRONG>Top Spins...</STRONG></FONT></font>
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					<P>Media Unspun serves business news and analysis, authoritatively and irreverently, every business day. An annual subscription costs $50, less than a dollar a week. If your four-week free trial is coming to an end soon, please visit <A HREF="http://www.mediaunspun.com/subscribe.html">http://www.mediaunspun.com/subscribe.html</A>  and sign up via credit card or check.<br>
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					<P>Ken Fisher offers his Quarterly Report for high net worth investors FREE of cost & without obligation. Access the same investment research he uses to guide his clients at:<br>
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					<P>US Airways scored a $500 million bankruptcy court bailout. American Airlines announced a re-org. United Airlines' parent company's stock sank on speculation that UAL is next in line for Chapter 11. It's a wonder none of this happened last September, but it's not much consolation to airline employees, shareholders, and customers that it's happening now.</P><P>
The Wall Street Journal had the most extensive coverage of American's plan as of Unspun's deadline. The airline will lay off 7,000 workers, ground some jets, cut back on flight amenities such as food, and retool its hub operations to make for longer layovers. "In the past, airlines were loath to have longer connection times because flights were listed in travel agents' computers by elapsed time," said the Journal. "Now, online booking tools and search engines most often list flights by price,
not time." In this age of penny-pinching, American's worried about low-cost carriers, not the big guys like, um, US Air and United. </P><P>
Speaking of United, it's hard to come up with a verb for its parent company's stock that doesn't invoke an air disaster. Let's just say it didn't go up yesterday. The $3.80 share price may be the least of UAL's worries while it waits for an increasingly unlikely $1.8 billion loan from the Air Transportation Stabilization Board. "The ATSB expects an applicant's workers, suppliers and creditors to make concessions to help the airline repay the loans and thus protect U.S. taxpayers' interests,"
said the L.A. Times. Sounds nice for uninvolved taxpayers but not so good to some of United's unions, which are balking at a wage cut. Workers did enough by deferring $498 million in retroactive pay this year, said the 36,000-member machinists' union. Analysts moaned in anti-labor frustration. </P><P>
The basic problem here is too many empty airplane seats, and non-U.S. outlets didn't have a lot of sympathy. "The U.S. government has bailed out carriers with insurance subsidies and federal loan guarantees" while "European authorities have acted more wisely," letting Swissair and Sabena "go to the wall," said the Financial Times. Canadian pundits agreed that America should let a couple of airlines wilt, since the Canadian airline industry benefited from the demise of Canadian Airlines and
Canada 3000. Paging Charles Darwin to the white courtesy phone... - Jen Muehlbauer</P>
					
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					You've heard about identity management, but do you know about the opportunities and business models that will emerge as a result? <a href="http://release1.edventure.com/executivesummary.cfm?MCode=Unspun">Download</a> a free executive summary of Esther Dyson's coverage of identity management in Release 1.0. Learn more about the expanding market for these services and applications.
					
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					<P>The LinuxWorld Conference and Expo, which opened yesterday in San Francisco, will host two of the strangest bedfellows ever to lie down with a stuffed penguin: Microsoft and Sun. These are companies that once referred to Linux as a "bathtub of code" (Sun) and "a cancer" (Microsoft), according to Sun's hometown paper the San Jose Mercury News.</P><P>
Both companies are taking Linux seriously despite the absolute numbers. By January 2, 2001, Microsoft had made as much on server software as all Linux vendors put together would reap in the entire year.</P><P>
Honors for the best attention-grabber on Microsoft's presence at the show go to Brier Dudley, who opened his piece for the Seattle Times this way: "Microsoft executive Peter Houston wasn't too worried about the reception he'd get at LinuxWorld ... until he heard about the pie cannon."</P><P>
Wired informed us that the section of LinuxWorld where Microsoft will be holding the fort is dubbed the Rookery -- "a place where you can watch companies hatch and grow right before your eyes," deadpanned reporter Michelle Delio, quoting Microsoft's Houston: "Hatching isn't exactly on the agenda, but I certainly hope to grow."</P><P>
Turning to Sun, Unspun notes that five years ago a joke press release circulated on the Net claiming that Linux creator Linus Torvalds, then still living in Finland, was moving to Silicon Valley to work for Sun. The joke was that Sun had decided to scrap its Solaris operating system and instead concentrate on a version of Linux, to be called "Solinux." How time does make April fools of us all: Linus Torvalds is now thriving in Silicon Valley (at Transmeta), and yesterday Sun Microsystems
demonstrated Sun Linux 5.0. and introduced its first general-purpose servers running Linux.</P><P>
The Merc ran a comprehensive wrap of Sun's evolving attitude toward the upstart operating system. Sun has little choice but to embrace Linux, wrote reporter Therese Poletti, because some of its traditional Wall Street customers were deserting it. "Several investment banks have tossed out whole sections of Sun servers and replaced them with Intel-based servers running Linux," Poletti reported. And you thought Microsoft hated Linux? - Keith Dawson</P><P>
Linux expo has come a long way<br>
<A HREF="http://www.siliconvalley.com/mld/siliconvalley/3847040.htm">http://www.siliconvalley.com/mld/siliconvalley/3847040.htm</A> </P><P>
Microsoft changes its tune toward Linux (Seattle Times)<br>
<A HREF="http://makeashorterlink.com/?Q12B23181">http://makeashorterlink.com/?Q12B23181</A> </P><P>
Microsoft Puts On the Tux <br>
<A HREF="http://www.wired.com/news/linux/0,1411,54489,00.html">http://www.wired.com/news/linux/0,1411,54489,00.html</A> </P><P>
(Hoax press release on "Solinux")<br>
<A HREF="http://www.ibiblio.org/dbarberi/fools/classic/1997/sun-pr.html">http://www.ibiblio.org/dbarberi/fools/classic/1997/sun-pr.html</A> </P><P>
Sun to name Linux-Solaris chief <br>
<A HREF="http://news.com.com/2100-1001-949469.html">http://news.com.com/2100-1001-949469.html</A> </P><P>
Sun Microsystems flexes Linux to jab at Microsoft (Seattle Times)<br>
<A HREF="http://makeashorterlink.com/?A25B52181">http://makeashorterlink.com/?A25B52181</A> </P><P>
Microsoft and Free Software at the Same Show? It's True<br>
<A HREF="http://www.nytimes.com/2002/08/10/technology/10LINU.html">http://www.nytimes.com/2002/08/10/technology/10LINU.html</A> </P><P>
Linux begins its descent into the enterprise<br>
<A HREF="http://www.internetnews.com/ent-news/article.php/1443811">http://www.internetnews.com/ent-news/article.php/1443811</A> </P>
					
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					<P>Ex-CEO Pleads Not Guilty to ImClone Fraud<br>
<A HREF="http://www.washingtonpost.com/wp-dyn/articles/A10407-2002Aug12.html">http://www.washingtonpost.com/wp-dyn/articles/A10407-2002Aug12.html</A> </P><P>
Security flaw found in Microsoft Web browser (Reuters)<br>
<A HREF="http://www.philly.com/mld/philly/business/technology/3851394.htm">http://www.philly.com/mld/philly/business/technology/3851394.htm</A> </P><P>
Fed seen leaving rates unchanged<br>
<A HREF="http://www.msnbc.com/news/793177.asp">http://www.msnbc.com/news/793177.asp</A> </P><P>
Some Sad No-Signs of the Times <br>
<A HREF="http://www.businessweek.com/bwdaily/dnflash/aug2002/nf20020813_0067.htm">http://www.businessweek.com/bwdaily/dnflash/aug2002/nf20020813_0067.htm</A> </P><P>
Publisher dodges bankruptcy bullet<br>
<A HREF="http://www.chicagotribune.com/business/chi-020812ziff.story">http://www.chicagotribune.com/business/chi-020812ziff.story</A> </P><P>
Gates Foundation Walks Fine Line As It Increases Its Cable Holdings<br>
<A HREF="http://online.wsj.com/article/0,,SB1029180416481589035,00.html">http://online.wsj.com/article/0,,SB1029180416481589035,00.html</A> <br>
(Paid subscription required.)</P><P>
PGP defect reveals encrypted messages<br>
<A HREF="http://news.com.com/2100-1001-949368.html">http://news.com.com/2100-1001-949368.html</A> </P><P>
Bell Labs simplifies single sign-on<br>
<A HREF="http://www.theregister.co.uk/content/55/26624.html">http://www.theregister.co.uk/content/55/26624.html</A> </P><P>
Bigger Bar Code Inches Up on Retailers<br>
<A HREF="http://www.nytimes.com/2002/08/12/technology/12CODE.html">http://www.nytimes.com/2002/08/12/technology/12CODE.html</A> </P><P>
Damn the Constitution: Europe must take back the Web<br>
<A HREF="http://www.theregister.co.uk/content/6/26612.html">http://www.theregister.co.uk/content/6/26612.html</A> </P><P>
Japanese Drop Out of New ID System (Newsday, AP)<br>
<A HREF="http://makeashorterlink.com/?T69B22181">http://makeashorterlink.com/?T69B22181</A> </P>
					
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					Written by Deborah Asbrand (<a href="mailto:dasbrand@world.std.com">dasbrand@world.std.com</a>), Keith Dawson (<a href="mailto:dawson@world.std.com">dawson@world.std.com</a>), Jen Muehlbauer (<a href="mailto:jen@englishmajor.com">jen@englishmajor.com</a>), and Lori Patel (<a href="mailto:loripatel@hotmail.com">loripatel@hotmail.com</a>).
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Copyedited by Jim Duffy (<a href="mailto:jimduffy86@yahoo.com">jimduffy86@yahoo.com</a>).
<P>
Marketing: Cowpoke Productions (<a href="http://www.cowpokeproductions.com">cowpokeproductions.com</a>).
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Advertising: Erik Vanderkolk (<a href="mailto:erikvanderkolk@yahoo.com">erikvanderkolk@yahoo.com)</a>.
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Editor and publisher: Jimmy Guterman (<a href="mailto:guterman@vineyard.com">guterman@vineyard.com</a>).
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Media Unspun is produced by <a href="http://guterman.com">The Vineyard Group Inc.</a>
<BR>Copyright 2002 Media Unspun, Inc., and The Vineyard Group, Inc.
<BR>Subscribe already, willya? <a href="http://www.mediaunspun.com">http://www.mediaunspun.com</a>
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