Delta considers a low-cost serviceDelta Air Lines is...

BUSINESS DIGEST

November 17, 1993

Delta considers a low-cost service

Delta Air Lines is considering starting a low-cost air service to compete with the no-frills carriers that have made inroads into the industry, Ronald W. Allen, Delta's chairman, said.

Full-service carriers like Delta dominate the industry, but several low-cost airlines, including Southwest Airlines and Atlanta-based ValuJet, have gained business by offering cut-rate fares and eliminating such extras as in-flight meals.

Baxter will cut 4,500 jobs

Baxter International Inc., faced with stagnating prices for medical supplies, said yesterday that it plans to cut 4,500 jobs, shuffle senior management and take $925 million in fourth-quarter charges.

In addition to the cost of reducing its work force by 7 percent, the charges include $225 million to settle lawsuits involving silicone breast implants and blood products that users contend were infected with the virus that causes AIDS. Baxter, the nation's largest supplier of medical equipment, said the job cuts will take place over five years.

150 to lose jobs at Pace in Laurel

Kmart Corp. will lay off about 150 workers at its Pace Membership Warehouse operation in Laurel on Christmas Eve as part of the recent sale of the Pace subsidiary to Wal-Mart Stores Inc., according to a Pace spokesman.

The six other Pace stores in Maryland -- including two in Baltimore -- will be converted to Sam's Clubs, Wal-Mart's membership warehouse subsidiary.

Barge service to Portsmouth, Va.

Sea-Land Service Inc., the largest U.S. flag container shipping company, will begin a weekly barge service between Portsmouth, Va., and Baltimore to provide quicker delivery of cargo from the Mediterranean to Baltimore, the company said yesterday.

Starting Friday, the service will deliver inbound cargo at Baltimore's Seagirt Marine Terminal, where Sea-Land recently signed a two-year lease with the Maryland Port Administration. The barge will return to Portsmouth with outbound cargo for a carrier that will leave for North Europe on Mondays.

FDA to review MedImmune drug

MedImmune Inc.'s backers breathed a sigh of relief yesterday when the company disclosed that the Food and Drug Administration had rescheduled an advisory panel review of its respiratory virus drug, Respigam.

The meeting was initially scheduled for Sept. 23, but a sudden postponement early in that month triggered widespread concern about the drug's safety. The Gaithersburg-based company's fTC stock closed yesterday at $29 a share, up $1.625.

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