Boeing Co. said Monday it would team up with Europe’s AgustaWestland to bid on a multibillion-dollar contract to build the next-generation fleet of U.S. presidential helicopters, shaking up an already turbulent competition. It’s the second attempt by AgustaWestland — a unit of Italian conglomerate Finmeccanica SpA — to sell its AW101 medium-lift helicopter for the military program that shuttles the president and key cabinet members. Chicago-based Boeing said it would secure a license from AgustaWestland to produce the helicopter in the U.S. The company will submit its bid before the June 18 deadline.
Airline profitability improving now
Airlines are expected to collectively return to profit in 2010, a year earlier than expected, thanks to the industry’s cost-cutting efforts and a nascent recovery in demand for air travel, a leading industry body said Monday. The International Air Transport Association expects airlines to post a profit of $2.5 billion this year, a sharp improvement on its previous forecast for a loss of $2.8 billion, and the industry’s first profit since 2007. Revenue is seen rising 13 percent to $545 billion. “The global economy is recovering from the depths of the financial crisis much more quickly than anyone could have anticipated. Airlines are benefiting from a strong traffic rebound that is pushing the industry into the black,” IATA Chief Executive Giovanni Bisignani said in a statement.
Chrysler recalls 600,000 vehicles
Chrysler is recalling almost 600,000 minivans and Jeep Wranglers in the United States and another 100,000 elsewhere because of brake or wiring problems that could create safety issues, the company and federal regulators said Monday. Chrysler said it is recalling 288,968 Jeep Wranglers from the 2006 through 2010 model years due to a potential brake fluid leak. It also is recalling 284,831 Dodge Grand Caravan and Chrysler Town &Country minivans from the 2008 and 2009 model years because a wiring problem can cause a fire inside the sliding doors.
T-bill rates fall in Monday auction
The Treasury Department auctioned three-month bills at a discount rate of 0.13 percent, down from 0.16 percent last week. Six-month bills were auctioned at a discount rate of 0.21 percent, down from 0.22 percent last week. The discount rates reflect that the bills sell for less than face value. For a $10,000 bill, the three-month price was $9,996.71 while a six-month bill sold for $9,989.38. That would equal an annualized rate of 0.132 percent for the three-month bills and 0.213 percent for the six-month bills. Separately, the Federal Reserve said Monday that the average yield for one-year Treasury bills, a popular index for changing adjustable rate mortgages, was unchanged at 0.36 percent last week, the same as the previous week.
From Herald news services
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