BUSINESS BRIEFING.(Business)

Byline: Compiled from The Associated Press, Bloomberg News, Scripps Howard News Service and News staff reports

NATIONAL

Chrysler to idle seven factories

The Chrysler arm of DaimlerChrysler AG said Friday it would idle seven factories in the United States and Canada for one week to cut vehicle inventories.

The move comes as sales of Chrysler, Dodge and Jeep vehicles have been erratic in recent months, with several models posting large declines. About 20,000 workers will be idled, but will receive 95 percent of their regular pay under union contracts.

Price of fuel boosts air fares

Rising fuel costs pushed up air fares 4.3 percent in September, the Air Transport Association reported. The trade group representing major airlines said coach ticket prices were up 3.7 percent compared to September 1999 and first-class fares increased 5.9 percent.

RadioShack cited for violation

The Federal Aviation Administration has proposed a $51,000 civil penalty suit against RadioShack Corp.'s Internet unit for violating the U.S. Department of Transportation's hazardous materials rule.

RadioShack.com shipped 15 nonrefillable metal containers of a hazardous material through Fed-Ex Corp. from Fort Worth, Texas, to El Monte, Calif., and failed to properly classify, describe, package, mark and label the contents for shipment, said FAA spokesman Roland Herwig. Herwig declined to comment further.

FedEx employees discovered the irregularities after the shipment was sent to the destination, the statement said.

RadioShack has 30 days to respond to the agency, the FAA said in a statement.

Chemical maker exploring sale

Chemical manufacturer Hercules Inc. said it has hired Goldman Sachs & Co. to help the company explore a possible sale.

Chief Executive Thomas Gossage confirmed the Wilmington, Del.-based company is in talks with a potential buyer for its FiberVision unit.

Earlier this month, Hercules chairman and chief executive Vincent J. Corbo, under fire for a restructuring plan that hasn't worked fast enough to help the company, abruptly resigned.

Gossage, 66, who led a turnaround of Hercules' fortunes in the early 1990s, was named interim successor to Corbo, 57.

Gulfstream, Air Force have deal

Georgia-based Gulfstream Aerospace Corp., a subsidiary of General Dynamics, said it has signed a 10-year, $477 million agreement to lease the Air Force five additional C-37A jets.

The C-37 is the military's designation for the Gulfstream V, a popular business jet and the company's flagship. The first two planes are to be delivered in July and August, with the rest by September 2003.

The Air Force plans to use the planes for the Department of Defense regional commanders-in-chief mission. The lease also calls for Gulfstream to provide maintenance for the planes.

WORLD

Dutch phone giant to cut jobs

Royal KPN NV, the biggest Dutch telephone company, said it plans to cut 23 percent of its jobs as part of a program announced last week to trim $589 million in annual costs by 2003.

The former state-owned monopoly plans to eliminate 8,000 positions in 2001 and 2002.

The cuts, including streamlining of headquarters, sales and computer services, could result in one-time charges this year, said Marinus Potman, a KPN spokesman.

KPN, which had about 34,700 employees at the end of last year, reported its first loss in the first half and cut its full-year earnings outlook, blaming costs for mobile-phone licenses and recruiting customers.

The company has spent about $7.7 billion since April on mobile licenses in Germany, the Netherlands and the U.K.

LOCAL

Montrose company gets contract

Scaled Technology Works of Montrose has been awarded a contract from The Boeing Co. to design and produce nearly 200 composite wind tunnel blades over the next year.

STW will be responsible for providing all new fan blades for the upgraded Boeing Transonic Wind Tunnel in Seattle.

Boeing is upgrading the BTWT to incorporate several advances in the tunnel architecture. Installation of new fan blades is expected to improve aerodynamic efficiency and reduce blade maintenance costs.

ViaWest opens new facility

Denver-based ViaWest Internet Services Inc., a regional Internet communications and data center solutions provider, announced the launch of its new Denver colocation and operations facility.

The 20,000-square-foot center runs server hardware and houses mission critical Web applications for businesses requiring significant security, power, network and monitoring capabilities. The new colocation facility is located at 501 Wazee St. in Denver.

Knowledge Workers has deal

The management of Englewood-based Knowledge Workers Inc. has purchased Gemstar-TV Guide International Inc.'s controlling ownership interest in the company. Knowledge Workers did not release terms of the transaction, but placed the company's market value at between $15 million and $20 million.

The high-tech recruiting firm expects fiscal year 2000 revenues to exceed $10 million. Knowledge Workers also plans a national expansion next year.