S Korea sees rise in business sentiment for May

Special Report:Global Financial Crisis

SEOUL, April 29 (Xinhua) -- South Korea's business sentiment index for May rose to a one-year high on hopes of economic recovery, an industry survey showed Wednesday.

The monthly business sentiment index, an indicator of companies' outlook for the coming month, hit 103.8 for May, compared with 86.7 for April, according to the survey by Federation of Korean Industries, the nation's top business lobby group.

The May figure is the first time in 11 months that the index rose above 100, which means companies with optimistic views on the economy exceed those with pessimistic forecasts.

The rise in the index comes as corporate earnings are better than earlier expected, the federation said.

Boeing sees no change in MRO plans

BEIJING,April 29-- Boeing will complete the first-phase construction of its aircraft maintenance, repair and overhaul (MRO) facilities in Shanghai in October as scheduled despite the sluggish aviation market, the U.S. company said Tuesday.

But the sharp drop in freight traffic as a result of declining world trade has forced Boeing to slow down its plans to perform passenger-to-freighter conversion at the factory.

The factory, Boeing Shanghai Aviation Services Co, was reportedly planned as a major base for Boeing to convert B767-300 passenger jets into freighters.

"The economic downturn has slowed the demand for freighters. Getting into the business where there is little demand will be difficult," said James Brunke, CEO of Boeing Shanghai Aviation Services Co.

International freight traffic started its decline in June 2008, before passenger markets were hit. Cargo traffic plunged 21.4 percent year-on-year in March, which was the fourth consecutive month that international cargo demand was over 20 percent below the 2008 level, according to statistics from the International Air Transport Association (IATA).

Boeing Shanghai Aviation Services Co was launched in 2006. Boeing holds a 60-percent-stake in the company, while Shanghai Airport Authority and Shanghai Airlines hold 25 and 15 percent stakes respectively. It is the first time that Boeing has taken a controlling share in an MRO joint venture.

The company leases a hangar from Shanghai Airlines to perform line maintenance, heavy maintenance checks and borescope services for five airlines. Its own hangar located at the Shanghai Pudong International Airport will be completed in October and can accommodate two wide-body aircraft simultaneously.

"I do believe China is still a viable market. Regardless of what the economic crisis is, it is still important for us to complete the hangar, to develop capabilities and to increase our staff numbers," Brunke said.

The company has 350 employees and it plans to employ over 800 people in the future.

Shanghai Aircraft Manufacturing Factory (SAMF) yesterday delivered the 1,500th shipset of B737-NG horizontal stabilizers to Boeing.

Horizontal stabilizers are placed at the rear of an aircraft and provide stability while the aircraft is flying straight.

SAMF signed a follow-on contract in April last year to supply another 1,400 shipsets to Boeing. The factory is now able to produce 24 shipsets a month.

SAMF also produces doorframes for Airbus A320 freighters.

(Source: chinadaily.com.cn)

Bulgaria sees no need for immediate introduction of euro

SOFIA, April 9 (Xinhua) -- Bulgarian Finance Minister Plamen Oresharski has taken a stance against the immediate introduction of the euro, saying this would have no significant economic impact, local press reported Thursday.

Oresharski's remarks came in response to International Monetary Fund (IMF) calls on central and eastern European countries to consider scrapping their currencies in favor of the euro even without formally joining the eurozone.

In a confidential IMF report, which leaked earlier in the week, the fund said the eurozone could relax its entry rules so countries could join as quasi-members, without European Central Bank board seats.

"Give me just one reason for concluding a new agreement with the IMF at this stage," Oresharski said, adding that Bulgaria has been considering the adoption of the euro and its impact on the economy for more than 10 years.

"We will do that if we have to, I can see no drama here," he added.

"Bulgaria's entry into the eurozone will have no dramatic consequences," the minister said.

He pointed out that Bulgaria's economy has been adjusted to a fixed currency rate in 1997-2000 at times of cataclysms, fluctuations and problems.

Bulgaria's entry in the eurozone, initially scheduled for 2010,has been set back for some time around 2012. Experts say it is conditional on continued fiscal prudence and lower inflation.

In fact, Bulgaria has yet to join the Exchange Rate Mechanism, the "waiting room" for euro membership, amid concerns about its inflation rates and external trade imbalances. Stricter application of membership criteria has also been a factor in the delay.