AlliedSignal wins large Boeing pactAlliedSignal Inc. said...

BUSINESS DIGEST

June 03, 1994

AlliedSignal wins large Boeing pact

AlliedSignal Inc. said yesterday that it had won a contract to provide up to $2 billion worth of equipment for the Boeing Co.'s next-generation 737 airliner.

The Sundstrand Corp., based in Rockford, Ill., came up the loser in the months-long competition to make auxiliary power units for Boeing's most popular narrow-body jetliner. The first plane is scheduled for delivery to Southwest Airlines in October 1997.

Industry analysts said the award affirms that AlliedSignal, a diversified manufacturer based in Morristown, N.J., has paid heed to glitches in quality, technology and service that hurt the company in the late 1980s. The company has a Government

Electronic Systems plant in Towson.

UAW Detroit strike spreads to GM

About 3,500 General Motors Corp. employees went on strike in Detroit yesterday in the second walkout this week at a major automotive technology center.

On Tuesday, 850 workers began a strike against Chrysler Corp. in Detroit. Neither walkout will affect production of current cars, but they have the potential to disrupt design operations.

The United Auto Workers struck both facilities after bargainers were unable to agree on local contracts. A key issue was the automakers' use of outsiders -- either contract workers or employees of GM suppliers -- inside the technology centers.

BGE donates $1 million for fuel

The Baltimore Gas and Electric Co. is more than doubling its annual donation to the Fuel Fund of Central Maryland to $1 million worth of credits, which will be distributed to low-income residents this winter to pay their BGE bills.

Last year BGE contributed $400,000 in credits to the Fuel Fund, and it has donated $5.5 million worth of credits since the agency's 1981 inception.

KLM drops Airbuses for Boeing jets

The European-U.S. aerospace war intensified yesterday as KLM Royal Dutch Airlines traded in its Airbuses for Boeings.

KLM said it is replacing its 10-strong Airbus A-310 fleet with seven new Boeing 767-300 jets.

The announcement could spark a new sales war on Airbus' domestic turf as other European airlines are expected to follow the lead of KLM, one of Europe's most aggressive carriers.

Redhook, Anheuser-Busch in deal

Seattle-based specialty brewer Redhook Ale Brewery Inc. said yesterday that it plans to enter a distribution and equity alliance with Anheuser-Busch Cos. Inc., the world's largest brewer.

Redhook, which has built a national reputation as a brewer of European-style ales, plans to open more breweries in other parts of the country, possibly in the Northeast, founder Paul Shipman said.

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