AVIATION BRIEFS

AVIATION BRIEFS

MITSUBISHI DOESN'T PLAN

ROLE IN JET-ENGINE PACTJapan's Mitsubishi Group does not plan to take part in a jet- engine production pact forged by Pratt & Whitney of the United States and West Germany's Daimler-Benz, a Mitsubishi Heavy Industries official said Wednesday.

"We have not even held any talks and have no schedule for talks," the official said.

Edzard Reuter, Daimler-Benz chairman, was quoted by West Germany's Handelsblatt newspaper Wednesday as saying it is conceivable Mitsubishi would participate in the Daimler-Pratt agreement. "It is conceivable but not fully discussed," Mr. Reuter said.

Last month, Daimler and Mitsubishi announced they were holding broad cooperation talks on cars, trucks, electronics, aerospace and services.

PARENT OF SAS LOST

$16 MILLION LAST YEAR

NEW YORK - SAS Group, parent of Scandinavian Airlines System, lost 98 million Swedish kronor ($16 million) in 1989, compared with income of 150 million kronor in 1988.

Revenue increased 9 percent to 29.5 billion kronor from 27.6 billion

kronor a year earlier.

Operating income of 2.7 billion kronor was virtually the same as in 1988.

SAS airline profit was 1 billion kronor, compared with 1.5 billion kronor in 1988. The company said capital investment of 10 billion kronor was the highest in SAS history, leading to higher depreciation expense from new aircraft and reservation and distribution systems.

CHINA ORDERS 20 JETS

IN MCDONNELL DEAL

HONG KONG - China has ordered 20 more McDonnell Douglas twin-jet airliners under a co-production project, the U.S. aircraft manufacturer said Wednesday.

The agreement brings China's total orders for the airliner to 50, of which 45 have been or will be built in China by the Shanghai Aviation Industrial Corp. with parts supplied by McDonnell Douglas, the statement said. It said 12 of the planes ordered have been delivered to China's airlines, adding that the latest order would extend co-production between 1991 and 1994.

EASTERN'S CREDITORS

AGREE TO SEEK TRUSTEE

NEW YORK - Unsecured creditors of Eastern Airlines, frustrated by the company's mounting losses and plans to reduce debt payments, have agreed to seek the appointment of a special trustee to find a buyer for the carrier.

The unsecured creditors' committee voted unanimously Tuesday to reject Eastern's latest reorganization proposal, which would give them only 25 cents for each dollar owed.

A majority of the creditors also voted to seek the appointment of a special trustee, sources close to the committee said.

"This group has had it and they're not going to take it anymore," one of the sources said.

The move puts the creditors in alliance with Eastern's unions, which have sought a trustee since Miami-based Eastern filed for bankruptcy protection on March 9, 1989.

The Chapter 11 filing came five days after the start of a crippling strike by pilots, flight attendants and machinists.