An unexpected fallout from the September 2001 terrorist attacks has been a heightened interest in business aviation, largely in response to the passenger security and safety the medium has come to represent.

As wrenching as the last four months have been for airlines in North America, a few have proven to be exceptionally adept at making money and growing shareholder value in a harsh economic environment.

The disappointing performance of stocks in both Aviation Week indexes--the Aerospace 25 and Airline 25--for the week ending Jan. 16 would suggest the two industry sectors essentially are moving in lockstep.

WEEKLY MARKET PERFORMANCE Closing Prices As of January 8, 2002 Current Previous Trailing Fwd. Pct. Chg. Company Name Week Week P/E P/E YTD AIRFRAME/PLATFORM BAE Systems 4.62 .... 29.9 .... 3.8 Boeing Co. 40.33 38.10 10.6 12.7 4.0 Bombardier Inc. `B' 16.61 16.85 46.1 .... 0.7

Merrill Lynch's aerospace and defense projections for 2002 show the two sectors heading in different directions.

Of all the small-cap defense contractors that stand to benefit from the U.S.' renewed commitment to military preparedness, Alliant Techsystems would seem to be as well positioned as any.

If there was ever a time when Boeing Co. might want to be perceived as much more than a commercial aircraft maker, that time is now.

The airline industry is overdue for a break, and it seems to be coming in the form of declining fuel prices.