Arizona Republic from Phoenix, Arizona • Page 39

I THE ARIZONA REPUBLIC MARKET SUMMARY, D4. NYSE, D5. NASDAQ, AMEX, D6. MUTUALS, D7. THURSDAY AUGUST 28, 1997 Editor, Marian Frank 238-4438 BUSINESS BRIEFS GLOBAL TRAVELERS Total international passengers going through Sky Harbor International Airport.

goes gloM grows, to handle 600,000 world travelers in '97 terms of international passengers. Sky Harbor reported handling a record 454,626 passengers in 1996, a 48 percent increase over the pre Sk Harbor expects By Ken Westei The Arizona Repubi Not too fong Jago, about the only thing reallyV international aooui any riaroor international Airport was is name. You mieht catch a short fliiht or two to- Guaymas, Sonora, but that was about it when it came to non-stop service from Phoenix to a foreign city. i A lot has changed, especially in the past year. The arrival of British Airways, LTU and Air Canada has opened new routes to Europe and Canada, helping to establish Sky Harbor as one of the fastest-growing airports in the country in mm.

I 4i -JLtkS i previous year, according to Airports Louncil i International, a trade group representing Americas major airports. Among North America's 35 largest airports have not had before," said Ostro, president and executive producer of GOMedia, a Phoenix-based television video and multimedia production company that has done work in Japan, the United Kingdom, Switzerland and France. "What it brings is a sort of human pipeline. It makes' times more efficient. It makes the flow of commerce much easier.

As more airlines come to this marketplace, we will become more and more of an international business environment." Last year, Phoenix ranked 33rd in total number of international passengers, just behind Charlotte, Please see SKY HARBOR, Page D8 terms of international traffic, only Denver International posted a greater rate of growth, 49.6 percent, than Phoenix. Gregg Ostro is among the Phoenix business owners who welcome the growth in international service. Kmart rebounds from brink "It's an empowerment for business that YOU SAID, "i want a store DESIGNED TO MAKE IT EASIER TO SHOP." YOU "I WANT BIGGER KPARTMENTS WTH A Terrific YOU SAID Changes in stock, new format help revitalize stores By Glen Creno The Arizona Republic The Kmart Corp. has a pretty good counterpunch for a company that seemed down for the count a couple years ago. Under relentless attack by the colossus and pressed hard by Target, Kmart looked like the odd man out.

Its stores were getting threadbare. Financial troubles were mounting, and a week before Christmas 1995, rumors swirled that Kmart was about to file for bankruptcy. It was a low point for Kmart, the one-time powerhouse of discount retailing that's finally struggling back to its feet. "We were never really out of the ball game. We might have had the lowest scores, but we weren't out of die game," Kmart spokeswoman Teresa Stephens said.

In April, Kmart began rolling out a new format for its old stores, called Big Kmart. It began reaching Phoenix-area stores this summer. The company also is radically changing its merchandise to bring back its core customers. The company is spending an average of $500,000 to remodel nearly all of its mainline stores, excluding the newer Super Kmart Please see KMART, Page D2 Small-stock record Blue-chip stocks halted a four-session losing streak Wednesday as depressed prices generated some interest, but the smaller-company sector stole the show with a record finish. The Dow Jones industrial average rose 5.11, to 7,787.33.

Story and chart, Page D4. Tourism chief leading group David Radcliffe, president and chief executive of the Phoenix Valley of the Sun Convention Visitors Bureau, is the new chairman of the International Association of Convention and Visitors Bureaus. The IACVB represents major cities in the United States and 29 other countries that promote themselves as destination sites for conventions and tourism. Radcliffe, a Phoenix native, is a 21 -year veteran of the tourism industry. Burger King takes aim at Big Mac Burger King is preparing to unleash a Big Mac attack of its own.

On Thursday, the company will trumpet the introduction of a version of the signature Big Mac burger of McDonald's Corp. To be called the Big King, it will be available Monday at all 7,277 Burger King restaurants in the United States. As might be expected, the Big King has two all-beef patties, special sauce, lettuce, cheese, pickles and onions on a sesame-seed bun. Faced with this challenge, McDonald's' is not about to be dethroned without a fight. It has laid the groundwork to strike back at Burger King by test-marketing its own version of Burger King flagship Whopper.

Called the Big and Tasty, it has yet to make its national debut. Geneva, Zurich workers best paid Workers in Geneva and Zurich are paid the highest salaries in the world, followed by those in Copenhagen, Tokyo and New York, according to a private study published Wednesday. Workers in Moscow, Bombay, India and Nairobi, Kenya are the lowest with hourly salaries that are only 5 percent of what their Swiss counterparts earn, the Union Bank of Switzerland report said. Switzerland's largest bank conducts the survey every three years and uses more than 20,000 data items relating to prices, wages, wage deductions and working hours. The report also said that a selection of more than 100 goods and services shows that Tokyo is the most expensive city in which to live, followed by Oslo, Copenhagen, Stockholm, Zurich, Singapore and Geneva.

Delta pilots want more pay Delta Air Lines pilots want more money from the nation's third-largest carrier, saying the airline extracted a pay cut in contract "negotiations last year and then gave raises to non-union employees. Leaders of the airline's pilots union are meeting in Dallas this week to discuss the possible use of informational pickets and other strategies to pressure Delta to negotiate a raise. The union has not said how much more it wants. The average salary for Delia's 9,400 pilots is $110,000 to $120,000 a year. Meatpacker to buy Hudson IBP the nation's largest meatpacker, said Wednesday that it will buy the Hudson Foods Inc.

beef-processing plant in Nebraska that was shut down after a massive recall. IBP hopes to reopen the Columbus plant within a few weeks. The company will work with the Department of Agriculture to overcome any record-keeping and manufacturing concerns, IBP spokesman Gary Mickelson said. Financial details of the purchase were not disclosed. Board bars UPS pilots strike United Parcel Service pilots will not be allowed to strike until early next year, the National Mediation Board says, easing fears of a disruptive walkout before the holidays.

The statement was issued after the head of the International Pilots Association on Monday accused UPS of failing to negotiate seriously before giving the union a proposed new contract. I PA President Robert Miller said he would submit the offer to the 2,000 members of the Louisville-based union for a ratification vote without a recommendation within the next few weeks. Compiled from reports by The Arizona Republic and the Associated Press. DOW JOES INDUSTRIALS 5.11 1997 1996 I 1995 1994 I 1993 292,594 307,195 1183.232.. 9 107,578 January- through June Source: Sky Harbor International Airport AW a The Arizona Republic SB A wants to expand program Agency seeks new rules on minority contracting By Jane Larson The Arizona Republic Businesses owned by women, the disabled and Native American tribes could find many new doors opening as the result of proposed changes to the U.S.

Small Business Administration's minority-contracting pro- gram. The changes, proposed this month, represent the SBA's latest attempt to expand a program criticized for funneling too many lucrative federal contracts to too few companies. Women, who own 41 percent of 'Arizona companies, praised the changes. Some minority business owners, however, worry that the increased competition will mean less business in an already tight program. FYI Highlights of the proposed changes in the Small Business Administration's minority-contracting program: Relaxing the standard for proving discrimination.

Creating a mentor-protege program. Relaxing the rules under which small businesses can team up to win contracts. Limiting the total of non-competitive contracts a business can win. Many small businesses covet spots in the SBA's Minority Enterprise Development Program, also known as Section 8(a), because 'it can help them land millions of dollars in contracts from federal agencies. Arizona companies won $101 million in 8(a) contracts in fiscal 1996.

The biggest door-opener in the proposed changes would make it easier for non-minority business owners to prove they face "sociar disadvantage" and thus deserve a spot in the program. Please see SBA, Page D3 1 1 I fcr it if. i --V I If North in we "4 11 reduce its $1.4 billion debt load. A big chunk was added last year when Allied completed a blockbuster $1.5 billion deal to buy the solid waste business of giant Laidlaw Inc. The deal made it, one of the biggest players in the industry.

The move doesn't mean Allied is through growing, however. Henry Hirvela, the company's chief financial officer, said Please see ALLIED WASTE, Page D3 2 Re 1 tvf I Michael GinThe Arizona Republic "I'm sure the competition will follow us eventually, but right now, we're on top of it," says Keith Smith, manager of the Big Kmart on Baseline Road in Tempe. Allied Waste plans $240 million stock sale The offering comes Allied's stock price. It after a surge in is up more than 60 percent this year. At Thursday's closing price, of $14.88, the deal would raise $241 million, making it the second largest offering in the state this year.

The biggest stock sale was done by Outdoor Systems Inc. The Phoenix-based billboard company, which also has been on a buying binge, raised nearly $400 million in May. Allied Waste said it will use the money to Los Arcos plans stress entertainment By Dawn Gilbertson The Arizona Republic Allied Waste Industries Inc. plans to sell about $240 million in stock to pay down debt piled up during its acquisition spree. The Scottsdale-based waste management company, which has bought more than 100 garbage operations in the past five years, said late Wednesday that it is offering about 16.2 million new shares of stock.

It has nearly 80 million shares outstanding. Screenwriting contest winners put state center stage By MarcGraser The Arizona Republic And the winner is v. Kurt Anderson of Topanga, took the Arizona Film Commission's top prize in its first Film in Arizona Screenwriting Competition. John Sharpe of Rio Verde was the runner-up with his script, The Color of Courage. Paul Ross of Santa Fe, and two other Arizona residents Dan McNeil of Pres-cott and John Kestner of Peoria were the other finalists.

The Arizona Film Commission launched the contest as a way to encourage screenwriters to include Arizona in more of their screenplays and to lure more Hollywood film productions to the state, said commissioner Linda Peterson Warren, who created the contest. Please see CONTEST, Page D2 By Alexa Haussler The Arizona Republic A Phoenix company thinks it knows what will draw people back to Scottsdale's struggling Los Arcos Mall area: entertainment. That means taking in a flick at a megaplex, sipping coffee in a plaza or spending a couple of nights at a hotel with all the amenities. The Ellman Cos. offered an ambitious.

$300 million proposal Monday to replace the aging mall with a movie theater complex flanked by retail stores, hotels, offices and apartments. the company proposes to raze the area and start over, with a focus on entertainment. "We've taken the full area and come up with a dramatic new design," said Bob Kaufman, Ellman 's senior vice president. 'Lllman, which owns, Los Arcos Mall, submitted the only plan to revitalize the Please see LOS ARCOS, Page D8 The Ellman Cos. A Phoenix company proposes razing Scottsdale's aging Los Arcos Mall and starting over.

The $300 million Ellman Cos. proposal focuses on an entertainment-based complex. Year Wednesday ago i Year Wednesday ago INTEREST RATES METALS AND COMMODITIES: WEDNESDAY'S CLOSING QUOTES fi ONE DOLLAR EQUALS: s- )jf -7 rj Dollar Yen Kc 1 1 3893 imM 0-70 Dow Joner. 7,787.33 5.11 913.70 0.68 Afi'EX: 651.12 3.82 N.Y. Mfirc Troy oz.

N.Y. Merc 99.70 0.150 '4 Cotton A if It IMA Prime rate 8.50 8.25 6-month T-bills 5.17 5.13 Discount rate 5.00 5.00 1 0-year T-notes 6.37 6.78 Federal funds 5.56 5.24 30-year T-bonds 6.65 6.98 3-month T-bill 5.12 5.05 Avg. 30-yr. mortgage rate: 7.45 Handy Hafinan a- peso mam 'Ms 7.7500 vNJ 1.8025 Nasdaq: 1,595.54 4.24 NYSE: 476.05 0.69 Composite volume: 591,981,890 Crude oil 19.73 0.45 Barrel 0.007Z Troy oz. 4.bSU pound 0.73 unchg.