Airlines margins hit by terror
New York: Global airlines, which were already selling low demand, are seeing increasing pressure on margins from tighter security measures being put in place after this week's foiled bomb threat.

The new restrictions on carry-on baggage and liquids ranging from toothpaste to bottled water, are leading airlines to incur higher costs from stocking more drinks on board and handling additional baggage. Hence airlines are backtracking on services they had scaled back on in recent years in their efforts to cut costs. Also the timing of the new security restrictions couldn't be worse. After posting their strongest profits in six years last quarter, carriers are bracing for a seasonal slackening in demand amid still-rising jet fuel costs.

So far airlines had cut fares for the fall travel season. However, if demand further softens due to tightened security, airlines could respond with bigger price cuts as early as the end of next week, said a travel expert.
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Pak, China to sign nuclear cooperation deal
Islamabad: Pakistan and China may soon finalise a landmark accord on nuclear energy cooperation, under which Islamabad will acquire six reactors of 300 megawatts each.

The nuclear accord may be signed during the visit of Chinese President Hu Jintao to Pakistan this November, according to reports.

An official with the Pakistan government said Pakistan also wanted to acquire a nuclear power reactor of 600 megawatts from China, but the Chinese have just started using its first such reactors; hence its provision to Pakistan would take some time.

Pakistan has been lobbying for a nuclear deal with the US ever since the US offered one to India.

After the US rejections, President Pervez Musharraf tied up with China when he was there to attend the Shanghai Cooperation Organisation (SCO) Summit.
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