Bid to save aviation jobs

Press, Volume CXI, Issue 32566, 27 March 1971, Page 20

Bid to save aviation jobs

(N.Z.P.A.-Reuter—Copyriqht) WASHINGTON, March 26.

American Government officials have said that there is no hope of keeping the supersonic transport project alive with private financing.

Mr B. Vierling, deputy manager of the Government’s supersonic transport programme, said the door was now closed on raising the money privately. “We are not now negotiating with any banks,” he said. Moves have begun in the Senate to ease some of the impact of unemployment resulting from the end of the project. The Boeing Aircraft Company of Seattle, which was building the airframes for two prototypes, said it .will have to lay off about 7000 workers and General Electric, which was making the engines, anticipated 1600 jobs would be eliminated. Lay-offs seemed certain to spread to other companies

sub-contracted for work on the airliner and some estimates put the eventual total loss of jobs at 13,000. Senator E. Muskie, one of those who voted against the plane in the crucial 51-46 ballot yesterday, moved to soften the blow to the America aircraft industry. He introduced a bill in the Senate that would shift some of the project money into research and development of aviation ' safety, urban mass transit and aircraft that could better serve concentrated population areas. In Washington, the Presidential press secretary (Mr R. L. Ziegler) said that the Government would try to recover some of the SNZ2B39m invested in the supersonic transport project. But he said there had been no offer yet from outsiders that would help recoup some of the layJAPANESE INTEREST

There have been reports and denials that major Japanese aircraft companies might make a bid to buy for 10 cents on the dollar the rights to mock-ups, tools, blue-

prints, prototypes and construction rights. Spokesmen for three Japanese firms, Japan Aircraft, Kawasaki Heavy Industries and Mitsubishi Heavy Industries, have said they have no plans to purchase these rights and Boeing Aircraft Company officials have said there had been no contact, offer or discussion with these companies. However, a State Department spokesman said today that another Japanese firm, the Ataka Trading Company, sent in an inquiry expressing interest in the programme.