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CARLSBAD, Calif. (KGTV) - California Pacific Airlines has canceled all of its January flights in and out of Carlsbad’s Palomar-McClellan Airport. The announcement came after the small airline had already canceled flights from December 21 through the end of the year. CPA launched in November with direct flights to Reno, Las Vegas, San Jose and Pheonix. It had been almost a decade in the making for founder Ted Vallas, who finally opened CPA after taking over a small airline with a fleet of four aging jets. But by December, the problems began. Two of the planes were taken out for repairs, creating several days of canceled flights. Operations resumed for about a week, but a few days before Christmas the cancellations began again causing passengers to scramble to find alternate routes. On Yelp, one reviewer wrote “They canceled my flight last night, and rebooked me to this morning. Then they canceled my flight this morning... on Christmas Eve!! Had to ditch this airline completely and booked a last minute Southwest flight.” Founder Ted Vallas told 10News that all canceled flights will be refunded. He said maintenance issues were still a lingering problem, but they ran into another issue as the holidays approached - a lack of pilots. Vallas said they recently let two of their pilots go. That coincided with two other crews leaving for higher paying seasonal jobs at major airlines. Without enough planes or pilots for all of their scheduled flights, they decided to cancel them across the board at Palomar-McClellan. Vallas told 10News, “Being a scheduled airline and dedicated to this community the North County, it would be better to notify people in advance that we have this pilot problem.” He said they are currently training more pilots and in the process of leasing new planes, but those won’t be available until at least February. Vallas says another one of their planes will be heading in for maintenance during their 30-day shutdown. Palomar-McClellan airport has had a history of failed airline ventures. The most recent was Cal Jet, which folded after less than a year of operations. But big changes are coming. Back in October, the county Board of Supervisors approved a plan to extend the runway, which could help make a business model for an airline more viable. For now, CPA continues to operate out of several other airports. Vallas vows to resume operations out of Carlsbad as soon as possible, but has not yet set a hard date. 2469

CHICAGO (AP) — Chicago’s mayor has announced that the nation’s third-largest school district will not welcome students back to the classroom to start the school year, instead relying on remote instruction.Mayor Lori Lightfoot said Wednesday that the shift for Chicago Public Schools is based on a recent uptick in coronavirus cases.The district says it will implement remote learning through the first quarter and work with the Chicago Department of Public Health to determine if it is safe to open with a hybrid learning model in the second quarter, which begins on November 9.“As we build out this remote learning model and seek to establish a hybrid learning model in the second quarter, we will continue to support and collaborate with parents and school leaders to create safe, sustainable learning environments for our students,” said Lightfoot.The district last month unveiled a tentative hybrid plan for the fall semester, which begins Sept. 8. But officials said it was subject to change depending on families’ feedback and area trends in coronavirus cases.The Chicago Teachers Union strongly opposed the district’s hybrid proposal, saying it wouldn't be possible to keep staff and more than 300,000 students safe.In a fiery statement Wednesday, CTU president Jesse Sharkey said that the district must immediately start planning transparently and in partnership with the union to provide every student the educational, social and emotional supports they need to learn and grow.“Congratulations to the mayor for being willing to listen to the concerns of families, educators, community groups and health professionals,” Sharkey wrote in part. “Now that she has stepped away from a dangerous Trump/DeVos scheme to force in-person learning this fall, we hope she will embrace guidelines set forth by real public health experts.” 1842

California's attorney general sued Sutter Health, accusing the hospital giant of illegally quashing competition and for years overcharging consumers and employers.The lawsuit marked a bold move by state Attorney General Xavier Becerra against the dominant health care system in Northern California as concerns mount nationally about consolidation among hospitals, insurers and other industry middlemen."It's time to hold health care corporations accountable," Becerra said at a news conference Friday. "We seek to stop Sutter from continuing this illegal conduct."The antitrust suit, filed in San Francisco County Superior Court, asks the court to prevent Sutter from engaging in anticompetitive practices and "overcharges."It said Sutter employs a variety of improper tactics, such as gag clauses on prices, "punitively high" out-of-network charges and "all-or-nothing" contract terms that require all of its facilities to be included in insurance networks.Taken together, Sutter's actions "improperly block any and all practical efforts to foster or encourage price competition between Sutter and any rival Healthcare Providers or Hospital Systems," according to the state's complaint. "Sutter's conduct injured the general economy of Northern California and thus of the state.Sutter, which owns 24 hospitals, reported net income of 3 million last year on .4 billion in revenue. Sutter's nonprofit health system also has 35 surgery centers, 32 urgent-care clinics and more than 5,000 physicians in its network.In a statement, Sutter it was reviewing the complaint and couldn't comment on specific claims.Overall, Sutter said, "healthy competition and choice exists across Northern California" for consumers seeking medical care. It also said its charges for an inpatient stay are lower than what other nearby hospitals charge."Sutter Health is proud to save patients, government payers and health plans hundreds of millions of dollars each year by providing more efficient and integrated care," the statement said.This high-profile legal fight caught the attention of employers and policymakers across the country amid growing alarm about the financial implications of industry consolidation. Large health systems are gaining market clout and the ability to raise prices by acquiring more hospitals, outpatient surgery centers and physicians' practices.Martin Gaynor, a health care economist at Carnegie Mellon University, said California's lawsuit may portend more litigation at the state level."There are a number of markets in the U.S. that are dominated by one very large, powerful health system," Gaynor said. "It could be that we're going to see a new level of activity by state antitrust enforcers looking at competition in their own backyards."Glenn Melnick, an economist and expert on hospital finances at the University of Southern California, said if the state prevails against Sutter it could put "a chill on anticompetitive practices that are being adopted across the U.S. and that could help slow down hospital price increases. That would be good news for consumers."The complaints about Sutter's high prices and market power have persisted for years.The state said its investigation started in 2012 under Kamala Harris, California's previous attorney general and now a U.S. senator. Six years ago, her office sent subpoenas to several health systems and insurers seeking information about market concentration and its effect on medical prices.A 2016 study found that hospital prices at Sutter and Dignity Health, the two biggest hospital chains in California, were 25% higher than at other hospitals around the state. Researchers at the University of Southern California said the giant health systems used their market power to drive up prices — making the average patient admission at both chains nearly ,000 more expensive.Last week, researchers at University of California, Berkeley issued a report that examined the consolidation of the hospital, physician and health insurance markets in California from 2010 to 2016. The authors said 44 of California's 58 counties had "highly concentrated" hospital markets.After the report was issued Monday, Becerra said his office would be reviewing those findings and pledged to apply more scrutiny to health care mergers and anti-competitive practices across the state.Sutter Health has gobbled up doctors' practices across the Bay Area, gaining market muscle that has pushed costs upward. Obstetricians employed by Sutter Health, for example, are reimbursed about three times more for the same service than independent doctors, according to a KHN review of OB-GYN charges on several insurers' online cost estimators. It's a key reason why Northern California is the most expensive place in the country to have a baby.At his news conference, Becerra said he's committed to scrutinizing other players besides Sutter in the health care industry who may be engaging in anticompetitive behavior and potentially harming consumers.Consumer advocates and state lawmakers applauded Becerra's aggressive action because of the toll high prices take on millions of Californians. Many residents struggle to pay rising insurance premiums and out-of-pocket expenses for emergency room visits or routine hospital tests."Consumers bear the burden of these monopolistic activities," said state Sen. Ed Hernandez (D-West Covina), chairman of the Senate health committee. "To ensure health care is affordable and accessible to all, we have to get a handle on predatory pricing."In many ways, Becerra's lawsuit mirrors a similar civil case filed in 2014 by a grocery workers' health plan.The attorney general's office filed a motion in court asking for its lawsuit and the class action to go to trial together before the same judge. The trial is scheduled for June 2019 in San Francisco."While we certainly would have preferred this happened earlier, we respect the attorney general's care in conducting a thorough investigation before filing charges," said Richard Grossman, the lead plaintiffs' lawyer representing the class of more than 1,500 employer-funded health plans.In its lawsuit, the attorney general's office blamed Sutter for much of the increase in health care costs across Northern California because "Sutter embarked on an intentional, and successful, strategy of securing market power in certain local markets." State lawyers also pointed out that Sutter's conduct triggered an "umbrella effect" by encouraging other providers to raise their own prices.The state's lawsuit said Sutter used its windfall from excessive prices to acquire more hospitals and medical groups. It also enabled Sutter to "bestow extremely high salaries for its officers and upper management," according to the state complaint.Patrick Fry, Sutter's chief executive from 2005 to 2016, had .4 million in total compensation during his last year there, according to Sutter's 990 tax filing for 2016, the most recent year available.Overall, 18 executives at Sutter had million or more in total compensation during 2016, the federal tax filing shows.Karen Garner, a Sutter spokeswoman, said Fry's compensation in 2016 reflects retirement benefits he accrued over many years. She added that "industry comparisons show our salaries are reasonable and competitive, given the size, scope and complexity of our organization." 7370

CAMPO, Calif. (KGTV) - U.S. Border Patrol agents stopped a “brazen” smuggling attempt Wednesday at the U.S.-Mexico fence in East San Diego County, officials said. Agents near Campo reported the incident Wednesday at 3:45 p.m. when a Dodge 4500 utility truck crossed into the U.S. Fifteen minutes later, agents saw a man who had a truck matching the suspect vehicle, using bolt cutters trying to cut the lock of a South Bay resident’s private gate. Agents tried to stop the man, but he drove off. RELATED: Border Patrol arrests teen with toy car at U.S.-Mexico borderFollowing a short pursuit, the truck stopped and everyone inside ran away, Border Patrol officials said. “A vehicle drive-thru, with overloaded and unsecured passengers, particularly in this terrain, can certainly result in a rollover accident with serious injuries and death,” said San Diego Sector Interim Chief Douglas Harrison. “The breach of this old landing mat wall is illustrative of the need for more hardened infrastructure with greater impedance and denial capabilities to keep the area secure. I’m proud of our agents’ steadfast vigilance that put a stop to this smuggling attempt.” Agents captured 16 people who admitted to entering the country illegally. The group consisted of nine men and five women from Mexico, and a man and woman from Guatemala. RELATED: Teens targeted to smuggle Fentanyl across US-MexicoThe truck’s driver, a 27-year-old Mexican citizen, will face charges, according to the Border Patrol. 1501

Can Singapore Airlines do luxury better than its rivals?The Asian carrier on Thursday unveiled a new cabin design for its fleet of Airbus A380 superjumbo jets, featuring double beds, swivel chairs and personal wardrobes in private first-class staterooms.The new design includes six spacious suites that boast 32-inch flat-screen TVs, vanity counters and luxury leather furnishings. In business class, couples traveling together can drop the divider between seats to create a fully-reclining double bed in the center column.But a decade after it first introduced the A380 -- the world's largest passenger jet -- Singapore's own luxury standard has been leapfrogged by competitors in the Middle East like Dubai's Emirates Airline and Abu Dhabi's Etihad Airways.The Gulf carriers' first-class offerings include on-board showers, fold-away beds and sliding privacy doors. Etihad even boasts private butlers for high-flying guests on some routes."Singapore Airlines is clearly attempting to reestablish its leadership position at the front of the aircraft," said Greg Waldron, managing editor of aviation industry website FlightGlobal.Corrine Png, an analyst at research firm Crucial Perspective, agreed, saying Singapore needed the redesign because its current offering "looks tired now" and rivals have caught up. The airline said it's spending 0 million on the overhaul.The airline has struggled to compete with Emirates whose prices are generally cheaper.Waldron pointed out that Singapore's new design features fewer first-class suites than its most-crowded A380 did previously -- and also has more economy seats. That should reduce the carrier's costs per passenger by adding more seats it's likely to fill."While suites generate publicity and headlines, the ticket price is far beyond the reach of most passengers," he said.Png notes that Singapore has also focused on lighter and thinner materials in its new cabins in an effort to cut fuel costs.Singapore's big unveil comes after a bumpy period.In May, it reported a surprise quarterly loss in the face of strong competition from Gulf airlines. The prompted Singapore Airlines chief executive Goh Choon Phong to kick off a root-and-branch review of the business. The airline swung back to profit in its most recent quarter.It's not the only Asian carrier facing turbulence. Hong Kong's Cathay Pacific lost roughly 0 million in the first six months of its financial year as it tried to fend off growing pressure from mainland Chinese airlines.Singapore said it plans to roll out the redesign across its entire fleet of A380s. The carrier is due to receive the first of five new aircraft next month and will also retrofit the 14 A380s it already has in service by 2020.The airline was the first to fly the superjumbo a decade ago.The A380 has had a troubled commercial history, with Airbus cutting annual production from 30 aircraft to 12 starting next year -- and then just nine in 2019. Customers have instead generally preferred smaller twin-engine aircraft like Airbus' A350 and Boeing's 777 and 787. 3136

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