USAir, Delta to cut fares
USAir and Delta Air Lines said yesterday that they will join their competition in cutting some domestic leisure fares up to 35 percent. The discounts, initiated Wednesday by Continental Airlines, are designed to encourage travelers to fly during the normally slow period between Christmas and college spring breaks.
American, United and Northwest airlines earlier said they would match the sale in markets where they compete with Continental. The discounted fares are available to most U.S. destinations, and tickets must be purchased by Dec. 11 for travel Jan. 5 through Feb. 14.
Unisys faces retirees' suit
Ten retirees filed suit yesterday against Unisys Corp., claiming the computer firm is illegally phasing out guaranteed medical coverage for retired and disabled employees. The retirees seek an injunction to force Unisys to continue the medical coverage that had been promised in writing. Unisys plans to begin the phase-out Jan. 1.
Airline may extend deadline
The chief executive of British Airways indicated some flexibility yesterday on the deadline for completing its $750 million purchase of a stake in USAir Group. But Sir Colin Marshall also wouldn't rule out legal action if the U.S. government rejected the deal. British Airways has said it would not extend its offer for a 44 percent equity stake in USAir beyond the Dec. 24 deadline set in July.
U.S. Transportation Secretary Andrew H. Card Jr. has set a Dec. 24 deadline for ruling on the deal. But U.S. negotiators have said it's unlikely Washington will approve the deal unless Britain agrees to liberalize its existing aviation agreement with the United States.
Northwest arranges loans
Money-strapped Northwest Airlines has arranged $260 million loans from six companies under an agreement that may prompt the ouster of its co-chairmen, a trade journal reported yesterday. The terms of the loans require that Northwest would have to be restructured to include new equity and a merger by June 30, according to Commercial Aviation Report.
Danskin expects loss
Danskin Inc. said it expects to post a loss of $800,000 to $950,000 in the third quarter to cover losses from stores and customers returning the company's defective pantyhose. Danskin started receiving complaints from customers and stores earlier this fall, said a company spokesman.