China Eastern Airlines said Tuesday that it plans to buy two 747 cargo jets from the Boeing Co. Several news organizations reported that the deal was disclosed in documents the airline filed with stock market officials in Shanghai. The deal would be worth $428 million at list prices, but the airline said it is getting a discount. The planes will be delivered in 2006 and 2007, according to the reports. It has been a tough year for 747 sales for Boeing. Aside from the China Eastern order, the company has taken orders on only two new jets. Meanwhile, customers have delayed or canceled orders for five others, giving Boeing a net loss of three orders for the year to date.
Sluggish results for Sears-Kmart
The inaugural quarterly results from the newly merged Sears Holdings Corp. didn’t impress investors, who sent its stock tumbling Tuesday after the nation’s No. 3 retailer posted a small first-quarter loss amid continued sluggish sales at Kmart and Sears stores. Sears Holdings, created through Kmart Holding Corp.’s March 24 acquisition of Sears, Roebuck and Co., reported a $9 million loss, or 7 cents a share, for the February-April period. The results sent Sears shares falling $13.41, or 8.7 percent, to close at $141.50 Tuesday.
Greenspan no fan of China policy
The Bush administration’s effort to increase pressure on China to overhaul its currency has received less than rave reviews from Federal Reserve Chairman Alan Greenspan and key central bankers from China, Europe and Japan. Greenspan on Tuesday disputed the contention of U.S. manufacturers that a revaluation of China’s yuan would make a significant impact on America’s soaring trade imbalances.
Seattle named tops in wireless
Intel has named the Seattle area as No. 1 on its list of most unwired cities, noting that residents can find wireless Internet connections from Seattle-Tacoma International Airport to the Space Needle. San Francisco; Austin, Texas; Portland, Ore.; Vancouver, Wash.; and Toledo, Ohio, round out the list.
Senators told of pension perils
Lax reporting rules created by Congress, coupled with corporate America’s eagerness to take advantage of loopholes, have left millions of workers’ and retirees’ pension plans underfunded without their knowledge, senators were told Tuesday. United Airlines may have set an example for others in the airline industry, Senate Finance Committee members were told during a hearing on Capitol Hill. After declaring bankruptcy in 2002, the airline won court approval in May to shed $9 billion in pension obligations.
From Herald staff and news services
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