Business & Finance
In a deal valued at $1.5 billion, the Engine Alliance, a joint venture of General Electric and Pratt & Whitney, was chosen by Dubai's Emirates Airlines to supply engines for the 22 A380 superjumbo planes it has ordered from Europe's Airbus Industrie. Airlines typically buy engines separately from the rest of the aircraft. The Engine Alliance beat out Britain's Rolls Royce Plc., bringing the two rivals about even in engine contracts for the 555-seat superjumbo's, the first of which are slated to enter service in 2006 for Singapore Airlines. The Dubai carrier also has options on 10 more.
Money-losing Aiwa Co. will become a wholly owned subsidiary of Sony, the Japanese electronics giants announced. The move is expected to be completed this fall. Sony gradually has increased its stake in Aiwa to 61 percent, and in assuming full control it will follow the lead of rival Matsushita Electric, which is turning five group companies into wholly owned subsidiaries to avoid overlap in research and to speed product development. Aiwa, which reported a $224 million loss last year, has lagged behind competitors in technology. The company cut thousands of jobs in recent months and is expected to have to close all but one of its nine assembly plants, resulting in as many as 5,000 more layoffs.