Indian Airlines not to fly to Europe
Mumbai: The government has decided to reject Indian Airlines request to fly to European routes. Civil aviation minister Sharad Yadav said a panel of officials from Indian Airlines, Air India and the Airports Authority of India is being set up to sort out the issue of the domestic carriers operating on foreign routes. Indian Airlines' request to fly to Europe had come in the wake of Air India withdrawing from these sectors. Both the Airlines operate flights to the Gulf countries now.
Back to News Review index page

New engine for Uno being developed
Mumbai: Ind-Auto, Fiat’s Indian venture, is all set to introduce a new Euro II compliant 1.9-litre engine for  its Uno cars. Company sources said this engine is now being used in Fiat’s Punto, Palio and Siena models and is very fuel-efficient. The diesel version of Uno has a 1.7-litre engine now. Both the petrol and diesel versions of Uno are Euro I compliant. While the petrol engine can be made Euro II compliant by adding a multi-point fuel injection system and a catalytic converter, the diesel engines would require a turbo compressor. Otherwise, an entirely new engine needs to be developed. Fiat is planning make its Uno, Euro-II compliant by January 2000.
Back to News Review index page

Yamaha four-stroke bike next year
Bangalore: Escorts Yamaha Motor is introducing a new four-stroke engine motorcycle. Vikram Sharma, executive director of the company, said the company is designing a new bike meant for the Indian roads. It will roll out  next year. The bike will attempt to be a better version than other four-stroke vehicles made by rival auto companies, Mr Sharma said.

Escorts Yamaha is also planning to introduce new variants of Yamaha YBX next year with additional features.
Back to News Review index page

Mahindra & Mahindra plans tie-up in Egypt
Mumbai: Mahindra & Mahindra is planning a joint venture with an Egyptian automotive components making company to make its Bijlee, an electrically-run three-wheeler, in Egypt. The Egyptian firm, Chloride Egypt, is owned by YNNA group, the largest automotive battery maker in Egypt. It is proposed that a plant will be set up in Egypt to manufacture Bijlee. The Egyptian company has also suggested plans for a collaborative venture with the Mahindras for marketing the three-wheeler in Egypt and West Asian countries.
Back to News Review index page

McDowell to set up distilleries in Punjab, Haryana
New Delhi: UB group company McDowell is planning to expand its operations in Punjab and Haryana. It may set up new distilleries in these states where at present it has only bottling arrangements. Company sources said it may consider closing down distilleries in Maharashtra, West Bengal, Bihar, Rajasthan and Karnataka in order to achieve better production alignment. The company is also in the process of refurbishing its brands and is about to hire a group of international consultants in this regard.
Back to News Review index page

PwC acquires multimedia company
Calcutta: International consulting firm PricewaterhouseCoopers has acquired Studio Interactive, a Dallas-based multimedia solutions provider. The acquisition is part of the consulting firm’s global strategy and its current focus on web and multimedia design to strengthen its e-commerce business practice, sources said.

This is the first instance of PricewaterhouseCoopers acquiring a firm. It has been its practice to pick up equity in a company in exchange for consulting services.
Back to News Review index page

Alloy Steel Plant of Sail may not be closed down
Calcutta: Steel Authority of India Ltd may not have to shut down its Alloy Steel Plant. An assurance to this effect has come from steel minister Dilip Ray. Sail had earlier decided to overlook a recommendation to shut down the unit from management consultants McKinsey & Co. Mr Ray has informed the employees of Alloy Steel Plant at Durgapur that a committee has been set up to study the viability of the plant.
Back to News Review index page

Air India to pay Rs 90-crore compensation
Mumbai: Air India may end up paying compensation to Caribjet, the Antiguan leasing company, for terminating a lease agreement in 1996. The national carrier may have to settle for Rs 90 crore in claims. The London Court of International Arbitration has passed an interim order in the case saying Air India will have to compensate Caribjet. The final judgement is awaited. The arbitration court had in February 1999 ruled against Air India, and the national carrier had gone in appeal against this ruling. Caribjet had filed for damages of $100 million from Air India after the end of the wet-lease of three of its aircraft.
Back to News Review index page

Virgin to make Australian entry
Sydney: Richard Branson, chairman of the Virgin group, is taking his airfare war to Australia. He said: "Where people are paying say Australian $500 a flight between two of the domestic cities, we will be there with fares of less than Australian $100 for at least 50 per cent of the seats." Virgin plans to make its Australian foray next year just in time for the Sydney 2000 Olympics Games, said Mr Branson. He also indicated that the busy Sydney-Melbourne route will be his first target.

The Australian government has already welcomed competition in the domestic segment, now dominated by Qantas Airways and Ansett Australia.
Back to News Review index page

British Aerospace to seek 30% in Airbus
London: British Aerospace may seek to raise its stake in Airbus Industrie to 30 per cent from the current 20 per cent in exchange for reducing the scope of its veto power over the consortium.

A British newspaper said British Aerospace will insist on higher stake  following the recent merger agreement between two other Airbus members, French Aerospatiale Matra and German DaimlerChrysler Aerospace and the likelihood of Spain’s Casa joining the consortium. The three companies will form the European Aeronautic Defence and Space Company, which will hold 80 per cent stake in Airbus as it is now structured -- Aerospatiale Matra and Dasa each 37.9 per cent stake and Casa 4.2 per cent.
Back to News Review index page

Exxon, Mobil to get nod for merger
Washington: Exxon Corporation and Mobil Corporation are expected to secure approval from the Federal Trade Commission for their $82 billion merger on 30 November. Sources said Exxon and Mobil have agreed to divest about 2,400 retail gasoline stations in the northeast, the mid-Atlantic, Texas and California as well as a refinery, terminals and other s assets as required by the FTC. The divestment is said to be the largest in FTC’s history.
Back to News Review index page