The German airline Lufthansa is to announce in Singapore an alliance with Singapore Airlines (SIA), press reports said. A spokesman for Lufthansa, Josef Grendel, declined to comment beyond confirming that a joint press conference would be held in Singapore on Monday.

The link concerned the two airlines only and there was no plan now for SIA to join the Star Alliance which links Lufthansa, the Scandinavian airline SAS, United Airlines of the United States, Thai Airways, Air Canada and Varig of Brazil, the reports said. The reports appeared in the newspapers Suddeutsche Zeitung and Handelsblatt and quoted sources close to Lufthansa. The newspaper reported that the link between the two airlines would be a step towards negotiations with a view to inclusion of SIA in the Star Alliance. Lufthansa, the second-biggest European airline after British Airways, has already said that the alliance was seeking a new partner in Asia. This would be an addition to Thai. Experts here said that negotiations were believed to be under way with Cathay Pacific of Hong Kong, Japan Airlines, All Nippon Airways and Air New Zealand. Under the link between Lufthansa and SIA, the two airlines would adopt code sharing.

Thai bank reforms begin

Thailand's financial authorities are planning to take over debt-ridden finance firms and commercial banks by converting their bad loans to the institutions into shares, a report said. The Nation daily said the move, amounting to de facto nationalisation, would apply to the 58 finance firms suspended earlier this year. It would also affect 33 still-operating finance companies and 15 commercial banks which no longer have viable businesses, the paper said. The Nation quoted financial sources as saying that Finance Minister Tarrin Nimmanahaeminda would present the plan to the International Monetary Fund when it meets to discuss Thailand's economic plight on December 8.

Restructuring the Finance sector is a key condition of a 17.2 billion dollar bailout organised by the IMF. Kimberly-Clark to cut 5,000 jobsKimberly-Clark Corp. said it will cut 5,000 jobs and close or downsize 18 manufacturing facilities worldwide a start of a major restructuring. The move will cost the paper products and personal care goods maker some $590 million, representing a $1.06 per-share charge against earnings in the fourth quarter.

The plan is expected to reduce the company's operating costs by $200 million annually by the year 2000, the firm said in a statement. Kimberly-Clark said lower selling prices alone will negatively impact full-year operating profit by about $250 million compared to last year. "As a result of this restructuring, Kimberly-Clark will be in a better position than ever to take advantage of the strengths inherent in its global brands and advantaged technologies," said Wayne Sanders, chairman and chief executive. Sanders said that by consolidating facilities, Kimberly-Clark will eliminate excess, high-cost production capacity and narrow its focus to advantaged technologies.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.