Business Briefs

Reported by Star-Bulletin staff & wire

Monday, September 22, 1997

Hawaiian Air pledges
$3 mil to promote isles

Hawaiian Airlines Inc. said today it will pay at least $3 million over the next two years into a new fund to promote Hawaii as a destination.

The fund was launched Friday by Outrigger Hotels & Resorts, which pledged $1 million. Outrigger asked others in the tourist industry to add $9 million and said it hopes the airlines will contribute another $10 million to create a total fund of $20 million.

That is 25 percent of what the airlines are expected to save under Gov. Ben Cayetano's two-year suspension of Hawaii landing fees. Hawaiian Air, the first airline to respond, said it expects to save $6 million a year and will contribute at least $1.5 million a year to the fund.

Monopoly approved
for isle cruise ship line

U.S. House and Senate conferees have approved a measure opening the way for a huge expansion of Hawaii's only cruise ship operation, creating some 2,000 new seafaring jobs, Sen. Daniel Inouye's office announced.

The measure, part of the Defense Appropriations Bill, would allow American Hawaii Cruises to use a foreign-built vessel for its island cruises while it has two and possibly three new super-sized cruise ships built on the mainland.

No opposition is anticipated when the measure goes to a final vote before the House and Senate and then on to President Clinton.

To protect American Hawaii Cruises' potential $1 billion investment in the new ships, the measure provides the company a 20-year monopoly on interisland cruise ship operations in Hawaii. Each ship is expected to cost between $300 million and $400 million.

American Hawaii Cruises is expected to announce its expansion plans once President Clinton signs the measure.

Seagram, Viacom settle
fight over TV networks

NEW YORK -- Seagram Co. is buying out Viacom Inc.'s half of USA Networks for $1.7 billion, ending a dispute between the partners that dragged on for nearly 11/2 years, the companies said today.

A Delaware judge ruled in May that Viacom had violated the companies' ownership agreement by operating competing networks like MTV, VH-1 and Nickelodeon.

Both sides were ordered to renegotiate their 50-50 partnership.

The deal would benefit Seagram by giving its Universal Studios unit sole control of an outlet to distribute its movies and television shows.

The agreement includes a clause that Viacom will not start a competing network to the Sci-Fi Channel, which is part of USA Networks, said Jill Krutick, an entertainment analyst at Smith Barney.