Steeper downturn predicted

The US Aerospace Industries Association (AIA) is predicting a worse downturn in sales of US civil aircraft in 2000 than had been expected. In his annual year-end review and forecast, AIA president John Douglass said sales of US civil aircraft, including engines and parts, are expected to decline to $45.7 billion in 2000 from an estimated $54.5 billion in 1999. "That is mainly in the large transport market, and that is due almost entirely to the Asian recession," he says. Estimated sales of civil aircraft in 1999 were up 9% from 1998.

McDonnell Douglas lives on

Boeing has decided to postpone its final merger with McDonnell Douglas (MDC). MDC's recent indictment for selling tools to a Chinese military factory has convinced Boeing to keep the separate MDC corporate structure for the time being so that it does not become liable for any other skeletons that might come out of the cupboard.

AMR spins off Sabre

American Airlines parent AMR is to spin off the remaining 87% of Sabre. This follows the appointment of William Hannigan of Southwestern Bell as president. He replaces Michael Durham, who resigned in September amid rumours that interference from American Airlines was jeopardising existing and future contracts. AMR had floated a minority of Sabre three years ago.

Source: Airline Business