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Airbus pays for delay in delivery of new planes

By Times Staff
Published June 15, 2006

Airlines around the world punished Airbus on Wednesday for delays in the delivery of its A380 superjumbo, demanding compensation, reconsidering orders - and in one case, striking a major deal with its rival Boeing Co.

Shares in Airbus' parent company crashed and Boeing's soared as repercussions of the production problems with the world's biggest passenger plane resonated throughout the industry.

They also raised questions about the European planemaker's management and strategy, and the future of the double-decker A380. Boeing is staking its bets on a smaller, more fuel-efficient model.

Singapore Airlines, one of the world's top carriers and the first to buy the A380, said it was unhappy with the delays. It demanded compensation and, on Wednesday, worsened the blow by announcing it would buy 20 Boeing 787-9 aircraft worth $4.52-billion and take options on another 20.

Airbus parent European Aeronautic Defense & Space Co. saw billions of dollars wiped off its value Wednesday as shares plummeted by 26 percent to close at 18.80 euros ($23.63), after it warned that operating profit would be cut by about 500-million euros ($625-million) each year between 2007 and 2010.

Ted Turner's memoirs to be published in 2008

The "Mouth of the South" has a story to tell - his own.

Ted Turner, the outspoken yachtsman, philanthropist, CNN founder and ex-husband of Jane Fonda, is writing his memoirs, Call Me Ted: The Life and Times of Ted Turner, to be published by Warner Books in fall 2008.

Turner, 67, announced this year that he would not seek re-election to the board of Time Warner Inc. He became a director of Time Warner in 1996 when the media conglomerate bought his cable networks company Turner Broadcasting Systems.

In recent years, Turner has spent more time on philanthropic efforts such as the Turner Foundation, an environmental group, and overseeing his large land holdings.

Northwest Airlines pilots oust their union chief

Pilots at Northwest Airlines Corp. have ousted union chief Mark McClain after he led them through tough negotiations that resulted in steep pay cuts and major concessions.

The union's Master Executive Council elected McClain as chairman in 1999. That same council voted 6-5 with one abstention to remove him Tuesday, the union said. That was the same day a bankruptcy judge in New York approved the pilots' new, 5½-year contract.

[Last modified June 15, 2006, 06:11:15]