CNF: EMERY WORLDWIDE AIRLINES WILL NOT RESUME OPERATIONS

CNF: EMERY WORLDWIDE AIRLINES WILL NOT RESUME OPERATIONS    CNF Inc., in announcing a combining of its separate units to form Menlo Worldwide, said it will not resume operation of its airline subsidiary Emery Worldwide Airlines.
   The U.S. Federal Aviation Administration grounded the cargo airline's 37 freighters on Aug. 13 after FAA inspectors found the company did not comply with requirements for safety and other related issues. Emery had agreed on that date to cease operating its fleet until it complied with FAA requirements. In February, 2000, an Emery plane crashed near Sacramento, Calif., killing an eight-member crew.
   In late September, Emery Worldwide had agreed to pay $1 million to the FAA as a settlement that would allow the cargo carrier to fly within six months.
   However, CNF said Wednesday that it will take a fourth-quarter after-tax charge of about $200 million for not continuing operations of the airline, reflecting the planned disposal of all aircraft, leases and other costs.