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Byline: -- Staff and Wire Services

United nonstop to China OK'd

WASHINGTON -- United Airlines on Tuesday won tentative approval from the federal government to operate the first-ever nonstop daily flight between Washington and China -- a route potentially worth $200 million a year.

The Department of Transportation's approval gives UAL Corp.'s United a critical head start over its competitors on the highly coveted, burgeoning market.

The Elk Grove Village, Ill.-based airline can begin nonstop service between Washington Dulles International Airport and Beijing's China Peking Capital Airport on March 25 if the tentative decision becomes final, the government said.

United beat out AMR Corp.'s American Airlines, which sought to fly between Dallas/Fort Worth and Beijing; Continental Airlines Inc., which applied for service between Newark, N.J., and Shanghai; and Northwest Airlines Corp., which applied for Detroit-Shanghai service.

Patent challenge is made easier

WASHINGTON -- The Supreme Court made it easier Tuesday to challenge patents, bolstering arguments by some in business that they are too readily granted and can stymie new drugs and other innovations.

In an 8-1 decision, the court said biotech firm MedImmune Inc. may pursue a court case in a patent dispute over its childhood respiratory drug Synagis. MedImmune, based in Gaithersburg, Md., went to court to challenge a patent agreement with Genentech Inc. Genentech argued that the case should be dismissed because MedImmune had agreed to make royalty payments, although under protest.

Albertson's buy boosts earnings

MINNEAPOLIS -- Supervalu Inc., the nation's No. 3 supermarket chain, said Tuesday its third-quarter earnings jumped almost 51 percent because of its purchase of grocery chain Albertson's. But the results missed analysts' expectations, and its shares fell nearly 2 percent.

Supervalu said it earned $113 million, or 54 cents per share, in the three months ended Dec. 2, up from $75 million, or 53 cents per share, during the same period last year. Revenue more than doubled to $10.66 billion from $4.7 billion a year ago.

Supervalu's results included a nickel a share in transaction costs from the Albertson's purchase, a penny a share of expenses for stock options, and 2 cents a share for special hybrid securities issued by Supervalu.

Oil prices sink to 18-month low

NEW YORK -- The oil market pared its losses to settle above $55 Tuesday, after a volatile trading day that saw prices sink to 18-month lows on expectations for more mild weather and selling by large investment funds.

Crude prices have plummeted nearly 9 percent this year.

Drivers hoping for lower prices at the pump are starting to see gasoline prices fall as well -- but not by much. Retail gasoline prices have fallen 3.5 cents over two weeks to a national average of $2.306, according to a government report released Tuesday.

Winter in the Northeast has been warmer than normal, which has curbed demand for heating fuels in the world's largest heating oil market.