October 7, 1996

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HEADLINE NEWS

Peru 757 Crash Probe Faces Technical, Political Hurdles

MELBOURNE, FLA. Peruvian and U.S. investigators face major bureaucratic and technical hurdles to unraveling the causes of an AeroPeru 757-200’s plunge into the icy Pacific Ocean. That aircraft crashed in 500-ft.-deep waters early on the morning of Oct. 2, about 28 min. after it had taken off from Lima’s Jorge Chavez International Airport for a flight of about 3.5 hr. to Santiago, Chile.

By JAMES T. McKENNA

HEADLINE NEWS

Bankrupt Kiwi Seeks New Funds To Rebuild Route Structure

NEW YORK Mired in debt and forced to suspend much of its revenue service, bankrupt Kiwi International Air Lines faces an uncertain future as management seeks a fresh infusion of capital to save the struggling carrier. Last week, after a downward spiral set in motion by the crash of a Valujet Airlines DC-9 in May, the carrier filed for Chapter 11 protection in U.S. Bankruptcy Court in Newark, N.J. The airline is trying to secure at least $5 million in debtor-in-possession financing to reorganize successfully.

By ANTHONY L. VELOCCI

HEADLINE NEWS

Laser Offers Defense Against Satellites

WASHINGTON Senior Pentagon officials deny interest in developing an antisatellite capability for the Airborne Laser, but they admit that a latent capability exists and that as low-orbiting, intelligence-gathering and commercial mapping satellites proliferate there will be pressure to look at spacecraft-killing weapons.

By DAVID A. FULGHUM

HEADLINE NEWS

Japan Seeks 6.5% Boost In Space Budget

Tokyo Japan’s 10 space ministries and agencies are seeking $3.57 billion for manned, planetary and Earth observation missions in fiscal 1997, a 6.5% increase over current spending. Manned spacecraft activities—the Japanese Experiment Module (JEM) for the U.S.-led space station and advances in H-2 launcher design to support it— lead all funding with a combined total of $1.3 billion (108 yen to $1).

By Eiichiro Sekigawa

HEADLINE NEWS

ValuJet Resumes Operations To New Scrutiny and Rivals

MELBOURNE, FLA. ValuJet Airlines returned after a 3.5month grounding to operations that face tougher scrutiny from the FAA, intensified competition and new challenges from among its employees. The carrier resumed revenue operations Sept. 30 after the U.S. Court of Appeals in Washington rejected a bid by the Assn. of Flight Attendants to keep the carrier grounded.