June 3, 2000

Canadian government encourages startups of discount airlines to compete with Air Canada, which holds 82% of domestic market; upstart WestJet Airlines finds passengers eager for low fares and no frills; photos; map; graph (M)

Article reveals that executives of AMR Corp--parent of American Airlines--and Northwest Airlines held preliminary talks regarding potential merger; recent announcement of UAL Corp--United Airlines parent--plans to purchase US Airways directly threatens smaller carriers on many routes; photo (M)

Nasdaq composite index soars 6.44 percent, ending its best week ever; investors cheer data indicating slowing economy and diminished likelihood of further substantial hikes in interest rates; photo; table (M)

Pres Vladimir V Putin hints that Russia and US could collaborate on new ways to shoot down enemy missiles soon after they are launched, rather than in space, as proposed by US; idea seems to resemble plan known in US as 'boost phase defense,' which has been proposed by a number of arms control advocates, who say it would provide US, Europe and Russia with the protection that Clinton administration insists it needs from so-called rogue states; such a system would be little use against Russian nuclear force, making it far more acceptable to Russian military; administration officials react cautiously to suggestion (M)

Indonesia clamors for democracy but is directed from the top by Pres Abdurrahman Wahid much as it was under Suharto until he was forced out in May 1998; Wahid's ability to enact his policies is dangerously limited, however, because Suharto eviscerated the nation's institutions; he rules through the force of his personality, through his moral authority, through the weakness of his rivals and through a sort of lighthearted bullying, but he can never be certain how his directives will be carried out; photo (M)