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February 3, 1997

HEADLINE NEWS

U. S. Industry Rides Profit Momentum

HEADLINE NEWS

Strike Looms At American

HEADLINE NEWS

OECD Advocates Free-Trade Policy

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HEADLINE NEWS

U. S. Industry Rides Profit Momentum

NEW YORK The U.S. aerospace/defense industry remains squarely focused on the bottom line, as reflected in fourth-quarter and year-end earnings, although some companies are managing to show top-line growth as well. Financial performances are generally meeting or exceeding analysts’ expectations for the most recent reporting periods.

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HEADLINE NEWS

Strike Looms At American

WASHINGTON Negotiations between American Airlines and the Allied Pilots Assn, remain stalled as both sides prepared for a strike on Feb. 15 that threatens to shut down the airline. APA President James G. Sovitch said late last week that the union intends to strike American at 12:01 a.m. on Feb. 15 unless the airline accedes to all of the contract demands presented by the union’s negotiating committee on Jan. 16.

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HEADLINE NEWS

OECD Advocates Free-Trade Policy

PARIS A group of the world’s 29 wealthiest nations is weighing in on the side of a deregulated airline industry free from government subsidies in a major policy announcement that could accelerate the trend toward open markets. International carriers are already a driving force in the global economy but they should be more strongly anchored in a business-oriented framework, according to the Organization for Economic Cooperation and Development’s air transport policy report scheduled to be published in the next few days.

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HEADLINE NEWS

Lantirn 2000 Raises Night-Attack Ceiling

WASHINGTON Lockheed Martin has completed plans for an upgrade to its Lantirn pods, initially designed to let strike aircraft make low-altitude ground attacks at night, that would allow high-accuracy bomb drops from up to 40,000 ft. altitude.

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HEADLINE NEWS

United, Other Carriers Show Earnings Vigor

SHIWASHINGTON More U.S. airlines joined the 1996 profit parade last week, with UAL Corp. at the lead. The parent company of United Airlines said strength in the U.S. domestic market was the key factor in its 1996 performance, as a growing number of passengers paying higher ticket prices more than offset higher fuel prices.

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HEADLINE NEWS

Singapore First Asian Nation To Accept Open Skies Pact

WASHINGTON U.S. Transportation officials are optimistic that imminent talks with Malaysia and Taiwan will produce open skies agreements, adding momentum to the first such agreement initialed in Asia last month by Singapore. In its pursuit of bilateral open skies in the Asia/Pacific region, the U.S. is seeking liberalized agreements with a group of countries, similar to its campaign in Europe to sign up multiple nations, according to Mark Gerchick, deputy assistant secretary of Transportation.

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HEADLINE NEWS

Scrutiny of Proposed BA-AA Pact Intensifies

WASHINGTON The controversial proposal by American Airlines and British Airways to form a worldwide alliance faces new tests this week on both sides of the Atlantic. In Washington, negotiators from the U.S. and U.K. will resume their discussions on an “open skies” pact between the two nations, considered the price Britain must pay for an antitrust-immunity blessing on the proposed partnership. In Brussels, the European Unions competition directorate holds a fact-finding hearing.

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HEADLINE NEWS

Indian Cabinet Sidesteps Singapore Airlines Proposal

NEW DELHI SAN FRANCISCO Political roadblocks are still preventing foreign airlines from taking stakes in startup Indian carriers, but the Cabinet Committee has approved broader reform of India’s aviation policy. The reforms reiterate government policy that allows foreign investors to own up to 40% of an Indian domestic airline.

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HEADLINE NEWS

U.S. Eyes Aircraft For Anti-Drug Force

MELBOURNE, FLA. The Clinton Administration is weighing a draft proposal to transfer surplus U.S. attack and surveillance aircraft to several Latin American nations for use in setting up an international air wing charged with interrupting drug-smuggling flights.

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HEADLINE NEWS

USAF Eyes Solid Motor; Blockhouse Abandoned

CAPE CANAVERAL U.S. Air Force investigators are con| tinuing to focus on an Alliant z Techsystems solid rocket motor 5 in the explosion of a McDonnell Douglas Delta 2 launch vehicle at Cape Canaveral Jan. 17 {AW&ST]zn. 27, p. 30). Both the Air Force and Delta payload sponsors are making changes because of the accident.

January 271997 February 101997