Air France, France’s state-owned airline, said it...

Air France, France’s state-owned airline, said it will begin negotiations for the purchase of 12 Boeing 737-500 airliners to be delivered starting in 1991. The 100-seat model, still under development as a replacement for the Boeing 737-200, is scheduled to enter commercial service next year. The Air France version would be powered by the same engine as used on Airbus Industrie’s A320 short-to-medium-haul aircraft, 25 of which Air France has on order from the European consortium.