August 7, 2001

British Airways reports operating profit fell 48 percent in quarter ended June 30, to 50 million pounds ($71.4 million) from 97 million pounds year earlier; chief executive Rod Eddington says company's financial situation will be tough until next summer; photo (M)

New York City Campaign Finance Board votes unanimously to withhold millions of dollars in city matching money from mayoral campaign of Alan G Hevesi because of unusual deal in which chief political consultant Hank Morris volunteered services to campaign; Morris says his activity is permitted by city law; says board will violate his First Amendment rights if it prevents him from freely volunteering services to friend of 30 years; suggests action is aimed at delaying and embarrassing Hevesi campaign; board president Rev Joseph A O'Hare says it is not closing door on Hevesi; urges Morris to submit data so board members can judge his other principal contention: that Hevesi's campaign is already paying enough in administrative costs to his firm to cover costs of his services; photo (M)

Heirs of late Jay Pritzker are at odds with his friend and partner, Alvin Dworman, New York real estate developer, over failure of Superior Bank in Illinois; complicated workings of Pritzker came into light two weeks ago when regulators seized Superior Bank, half-owned by family, in what is expected to be one of costliest savings and loan failures in decade; Pritzers, who insist they are passive investors in Superior, have complained that Dworman did not do his share in waning days of Superior to bail out savings institution, even though he managed Superior out of his Manhattan office; Pritzkers have told friends that Dworman refused to pay back $100 million loan from bank that Jay Pritzker helped him secure when Dworman was in financial straits--accusations Dworman denies; photos (M)

Viacom's president and chief operating officer Mel Karmazin has sold 15 percent of his shares in company, raising $35 million and eyebrows of some investors, who wonder if Karmazin is losing faith in stock's growth potential; transaction's timing also upsets chief executive and controlling shareholder, Sumner M Redstone, who has never sold any of his shares in company and has limited Karmzin's right to sell stock to no more than 800,000 shares per year; some investors and analysts question timing of Karmazin's sale of 700,000; several people close to Karmazin point out that he remarried in spring and wants to liquidate some of his holdings; photo (M)

A Comeback in Mexico Mexico's former governing party, the PRI, ended a long losing streak by winning a gubernatorial election in Tabasco. In reclaiming the statehouse, the party says, it has won new life nationwide. PAGE A3 Power Agency Head Resigns Curtis Hébert Jr., chairman of the Federal Energy Regulatory Commission, said he would resign after a short, volatile tenure. PAGE A11