Consolidation pressures, depressed Asian demand and uncertainties about how global alliances will be regulated are likely to be troublesome for Europe's major airlines this year, preventing most of them from matching their record 1997 financial performances, according to some British and German market analysts.

When Northwest and Continental airlines announced their proposed alliance last week (see p. 32), some industry observers quickly assumed the partnership--if approved--will trigger further U.S. carrier consolidation.

Despite Boeing's dominant position in the commercial aircraft market and its leading position in defense and space, a host of uncertainties surrounding the company's near-term business prospects prompted Standard&Poor's to revise its outlook for the troubled aerospace giant to ``negative'' last week.

As one of the most active consolidators in the aviation parts and inventory-management sector, AAR Corp. continues to acquire niche businesses that broaden the company's reach.

Looking ahead to the collective stock-price performance of the U.S. aerospac e/defense industry's market leaders in 1998, it would be nice to think the group has nowhere to go but up. But, of course, that remains to be seen.

Wall Street keeps raising the financial-performance hurdle for U.S. airlines, as strong passenger growth and falling fuel prices bolster expectations for higher profits.

The FAA responded to year-old NTSB calls for improving the safety of commercial transport fuel tanks last week, saying it would study the problem for eight more months before acting on the safety board's recommendations.

Vivid Technologies Inc., which provides automated explosives-detection equipment for airline luggage, is setting up a joint venture company in partnership with an Indian concern.