Aviation to lose $3b

PARIS: Airlines around the world are expected to lose a combined $3 billion this year as high fuel prices continue to hurt profitability, the International Air Transport Association said in a forecast. World airlines had a loss of $3.2 billion in 2005. More efficient use of fuel and other cost-cutting efforts are expected to lift the industry’s 2006 operating profit to $7 billion from $4.3 billion last year, said the IATA, whose two-day annual meeting began Monday.—AP

Bank fraud in China

SHANGHAI: Bank of China has been ensnared in another corruption scandal with a Chinese businessman arrested for embezzling 146 million yuan (18 million dollars) from a local branch, state media reported. Wu Guofang, general manager of Zhoukou Wanyuan Beer company in central Henan province, embezzled the money from the Shenqiu branch in 2004 and 2005 with the help of bank employees. Wu apparently used false credit guarantees and collateral to win bigger bank loans than he was authorized to. —AFP

Money laundering

HONG KONG: Efforts to clean up a Macau-based bank accused by US of laundering money for North Korea have made good progress, but investigations into the bank are still ongoing, a US Treasury official. Daniel Glaser, the US Treasury deputy assistant secretary for terrorist financing and financial crimes, said authorities in Macau have taken steps to clean up Banco Delta Asia since the US banned transactions between the bank and American financial institutions in September.—AP

Aussies eye airports

SYDNEY: The Commonwealth Bank of Australia said Monday it may put up more than one billion dollars (752 million US) if a consortium led by US investment bank Goldman Sachs makes a formal bid for British airports operator BAA. The Australian bank said its asset management unit, Colonial First State Global Asset Management, was a member of the consortium but that no formal decision had been made about a possible offer for BAA, which operates London’s Heathrow, Gatwick and Stansted airports.—AFP

Foreign debt declines

JAKARTA: Total foreign debt owed by the Indonesian government and private firms fell to $131.8 billion at end-March from $133.48 billion as of end-2005, Bank Indonesia said Monday in a report. Government debt accounted for $76.4 billion, private firms held $46.5 billion in debt and $8.9 billion was in rupiah-denominated debt held by foreign investors or creditors, the report said. Total government foreign debt as of end-2005 amounted to 74 billion dollars, a Bank Indonesia official said.—AFP

‘Cut tax targets’

MANILA: The Philippines’ main tax collection agency has asked the government to cut back its revenue targets for this year and next, a report said on Monday. The Philippine Daily Inquirer quoted Bureau of Internal Revenue chief Jose Mario Bunag as saying the tax collection goal for 2007 should be scaled down 17 per cent to 661.5 billion pesos (12.72 billion dollars). “There are several things fatally wrong with the way the BIR annual target is set at the moment, which we should discuss,” Bunag was quoted by the Inquirer in a letter he sent to the finance department. – AFP

FNCCI shows concern

KATHMANDU: The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) raised serious concerns over the suspension of production by Bottlers Nepal (Terai) Ltd due to strike by its workers. Issuing a press release today, FNCCI has asked concerned parties to

come for dialogue and resume operations. “Continuous strike by the employees and protests will not only affect production in the company but may also result in loss of jobs,” the release states. —HNS

NCC meets minister

KATHMANDU: A delegation of Nepal Chamber of Commerce (NCC) today met with Ramesh Lekhak, state minister for labour and transport management. The delegation led by

NCC president Surendra Bir Malakar asked the government to make the labour policy investment-friendly in order to attract more private investment. “In the absence of flexible labour laws, Nepal has not been able to attract private investment, both from domestic as well as foreign sources,” said Malakar. The importance of private sector investment can hardly be emphasised for Nepal’s economy.—HNS

Siren to stop thieves

BHAKTAPUR: Nepal Telecom, Bhaktapur branch has installed sirens in three VDCs of the district after finding telephone wires in Duwakot and Changu VDCs have been stolen. According to the in-charge of the branch, the siren is set in such a manner that it would alarm local people about the act of stealing of the wire. An instant communication mechanism has been set up through which local people could immediately contact telecom office or security force after the siren goes off, he added. Stealing of telephone wires has gone up in these VDCs in the last few months. — RSS