European firms eye India for defence production
Le Bourget: Leading European defence equipment and missile manufacturers are focussing on India with their future design, development and production plans. The growing divide between the EU and the US, marked by the absence of the heads of US majors at the Paris Air Show, has tilted the balance in favour of India. EADS group firm MBDA has joined hands with Bharat Dynamics Ltd (BDL) to develop and manufacture all varieties of missile systems, including anti-tank, surface-to-air and air-to-air missile. "We are also willing to invest in BDL or form a JV company for these missile systems. Besides catering to the demand in India, we will also use it as a base to cater to other overseas markets," MBDA CEO Marwan Lahoud said. This is the company's first strategic venture outside Europe. "We have already received orders from the Indian Navy for an air defence system to be installed on their P17 ships that are under development in Mumbai." It will develop air-to-air and surface-to-air missiles for the IAF and the Indian Army. In addition, Russian military aerospace major Sukhoi Aviation Holding Company has also joined hands with India to partially finance and participate in the development of a next-generation fighter aircraft. The project is still in an early stage.

India and Russia have historically been partners in defence procurement.
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Thai Airways to add flights to 5 Indian cities
Bangkok: Thai Airways is planning to start flights to five more Indian cities by 2004, doubling its seat capacity and sales on routes.

The country's flagship carrier will start flights Chennai in October, Deputy Transport Minister Pichet Sathirachavarn said at a press conference here. The carrier will also fly to Bangalore, Varanasi, Gaya and Guwahati by November 2004, Pichet said. "India has a tremendous business opportunity for the country's more than 1 billion people," said Pichet. "There is also very high travel demand in the country as most of Thai Air's current flights to the country are fully booked." Thai Air wants to add more destinations in Asia, which it expects will overtake Europe as its biggest market in five years. The airline earlier expanded its network elsewhere in Asia, including in China, Korea and Japan. Sales on Indian routes may double to about 400 million baht ($9.6 million) a month, from about 190 million baht, said Pichet.
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GE, unions agree on contracts
New York: General Electric Co, the world's largest manufacturing company, said that it had reached a tentative four-year deal with two of its largest unions regarding wages, pensions and other employee benefits. If the agreement is supported by the union members then it would not only help GE avert a potential workers strike but it would also act as a guideline for other manufacturing companies that are desperate to restructure labor costs in a weak US economy. The agreement was reached between GE's management and the International Union of Electronic Workers-Communication Workers of America (IUE-CWA) and the United Electrical, Radio and Machine Workers of America (UE). Both unions cover 16,000 employees. The terms and conditions, on which the union members will start to vote this week, will also be extended to GE's 11 other unions, the company said. About 24,000 GE workers in 13 unions are seeking better pension benefits, job security and a cap on rising healthcare costs.
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American Express to buy Threadneedle
New York: American Express Co is expected to announce as early as Monday it is buying British-based Threadneedle Asset Management for 340 million pounds in cash, a source familiar with the deal said on Sunday in New York. For American Express this is its first major entry into the asset management market outside the United States and will be "slightly accretive" to its earnings in 2004, the source said. The deal is expected to be completed by the end of the year. American Express is expected to retain most of Threadneedle's staff and the UK firm's Chief Executive Simon Davies is expected to run the business out of London, the source added. Threadneedle is owned by the Swiss group Zurich Financial Services . American Express declined to comment on the deal while neither Zurich Financial nor Threadneedle could be reached.
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