Inside Alaska industry.

Transportation

Who can keep up with the ever-changing air fare wars? MarkAir dropped its Phoenix route and announced new service to Newark, N.J., and San Diego, Calif. MarkAir's expansion continues despite bankruptcy proceedings and concerns raised by creditors.

Meanwhile, competitor Alaska Airlines announced its entry into the Dutch Harbor market. Beginning in April, Alaska plans daily flights to the fish processing center, hauling both passengers and cargo.

Alaska goes up against MarkAir, PenAir and Reeve Aleutian with its new combi (passenger/cargo combination) service, with cargo capacity of 30,000 pounds per flight.

How much longer can Alaska and MarkAir pummel each other? Some industry insiders say '93 will be the watershed year. In late December, Alaska Airlines gave lay-off notices to 140 pilots. In early January, the airline canceled construction of a $45 million hanger in Anchorage, eliminated 64 management jobs and dropped its jet service to Boise, Idaho.

More transportation trends:

* For the first time in 11 years, a Russian Far Eastern Shipping Co. (FESCO) vessel has sailed into the Port of Tacoma. FESCO officials say regular service between the U.S. and Vladisvostok may resume in the future.

* Air China is planning service between Beijing, Shanghai and New York, with a customs-clearing stop in Anchorage. The service is slated to begin this spring, with stops by Boeing 747 combis three times a week.

Oil and Gas

The tangled webs we weave.

The Hickel administration seemed close to securing an end to the ban on the export of North Slope crude oil as sympathetic White House staffers, supported by the Department of Energy, insisted the restriction could be lifted by executive authority.

Then along comes the Department of Justice. Its job: to defend the federal government against a state lawsuit that seeks to overturn the export prohibition. Citing research conducted in preparation for its courtroom showdown with Hickel, the Justice Department concluded the president does not have authority to allow North Slope crude exports without congressional approval.

State officials project that exporting oil to Asian markets could generate an additional $185 million annually in taxes and royalties. That would be quite a boon to a state facing oil price uncertainties and fiscal debate in the legislature -- especially as oil lease sales aren't what they used to be.

Although the state earned about $8.6 million in a recent North Slope sale, analysts note that many big industry players...