Texas Air Drops Offer
For Eastern PreferredTexas Air Corp. is dropping its attempt to buy back an issue of Eastern Air Lines convertible preferred stock that is held largely by Eastern employees. Eastern is a subsidiary of Texas Air.
The 20 percent Participating Non-Cumulative Convertible Preferred Stock was issued as part of a deal involving labor concessions several years ago, before Eastern's purchase by TAC.
Texas Air said changes in economic circumstances since the offer was originally made last summer, including losses at Eastern totaling $143.4 million in the 1987 fourth quarter, led it to decide that it no longer makes sense as a business matter to pursue an offer of $16 per share for the stock.
Texas Air said all shares tendered to date will be returned to their owners.
Swedish Royal Visit
Sets Up Air Talks
New negotiations over direct flights between Canada and Sweden will start in May.
This follows a week-long royal visit to Canada by the Swedish king and queen.
We discussed the question during the visit and decided to meet again, said Anita Gradin, Sweden's minister for foreign trade.
The Scandinavian Airline System had a direct flight to Montreal and Air Canada had one to Copenhagen, Denmark, until 1980.
SAS wanted to change its destination to Toronto because companies were moving there as a result of the separatist movement in French-speaking Quebec. Canada refused and both the SAS and Air Canada flights were stopped.
Japanese Airline Takes
Delivery of First DC-10
LONG BEACH, Calif. - Toa Domestic Airlines Japan has taken delivery of its first McDonnell Douglas DC-10 triple-engine jet.
A second aircraft will be delivered in June.
The delivery of the long-range, wide-bodied jet signals TDA's change from a domestic carrier to an international airline. Reflecting that change, TDA will change its name next month to Japan Air System.
TDA's DC-10 will enter service in July, flying from Tokyo to Okinawa.
SkyWest Airlines of St. George, Utah, 1988 flew 14 million revenue passenger- miles in February, a 35.3 percent increase over 10.3 million in the comparable period last year. SkyWest's load factor was 42.4 percent, compared to 42.6 percent last year.
On a year-to-date basis, SkyWest's RPMs rose 28 percent, from 20.6 million to 26.3 million. Load factor on a year-to-date basis was 40.4 percent compared to 42 percent during the previous year.
Texas Air Drops Offer