Business Notes

They have suddenly become the airline industry's most surprising partners. Frank Lorenzo, chairman of Texas Air, oversees two carriers -- Eastern and Continental -- that are plagued by union strife, deep operating losses and sloppy service. Jan Carlzon, president of Scandinavian Airlines System, pilots a peaceful, profitable, smooth-running fleet. Yet last week the two men shook hands on a deal billed as the industry's first global alliance among major international carriers. For up to $50 million, SAS will buy a 10% stake in Texas Air and gain greater access to the U.S. market by leasing the rights to three of Continental's 41 gates at New Jersey's Newark airport. Each airline will feed passengers into the other's route systems and share some ground crews and training centers. Said Lorenzo: "It's an ideal marriage."

As in many marriages, it is a case of opposites attracting. Lorenzo said he was counting on SAS employees to impart their dedication to service to his 70,000 workers. Carlzon said he hopes to learn some of Texas Air's cost- cutting techniques as the European airline industry enters a period of deregulation akin to the one that Lorenzo has weathered in the U.S.

At week's end Lorenzo was working on another bold move. Sources close to Texas Air confirmed that both TWA chairman Carl Icahn and New York developer Donald Trump were negotiating with Lorenzo to buy all or part of Eastern. Trump's particular interest is the shuttle connecting Boston, New York City and Washington.