January 19, 1984

The president of the American University of Beirut, Malcolm H. Kerr, was killed here today when unidentified gunmen fired two bullets into his head while he was walking to his office. Soon after the killing of the 52-year- old educator, a male caller telephoned the Beirut office of Agence France- Presse and said the slaying was the work of Islamic Holy War - supposedly a pro-Iranian underground group. Callers saying they were from Islamic Holy War took responsibility for bombing the American Embassy in Beirut last April 18 and the attack against the Marine compound here on Oct. 23. But the police have no evidence that the group actually exists. Dr. Kerr's assailants escaped after the attack. 'We Are Responsible' The Islamic Holy War caller told Agence France-Presse in Arabic: ''We are responsible for the assassination of the president of the American University of Beirut, who was a victim of the American military presence in Lebanon. We also vow that not a single American or Frenchman will remain on this soil.''

A healthy increase in business travel and stiff resistance to profit- eroding fare wars have led airline industry executives and analysts to predict that 1984 will be a strong year. George W. James, senior vice president-economics and finance of the Air Transport Association of America, for example, has recently increased his estimate of 1983 industry operating earnings by about $100 million and is increasingly bullish for this year. He said the industry ended 1983 with operating earnings of about $500 million. In 1982, by contrast, the industry had an operating loss of $733 million.

The Sports People column in some editions yesterday incorrectly identified the magazine that named John McEnroe its No. 1 tennis player. It was World Tennis.

New York and four other states told the Environmental Protection Agency today that they intended to sue it because the agency had failed to order reductions in sulfur emissions that cause acid rain. In a formal notice required 60 days before the agency can be officially sued, the states said they would seek an order from the Federal District Court here to require the agency to rule on a petition New York State has had pending with E.P.A. since 1981. Maine, Minnesota, Rhode Island and Vermont joined New York in the notice, along with three national environmental organizations.

A Boston developer has offered to build a pedestrian tunnel connecting two East Side subway lines in return for permission to put up an office tower that exceeds New York City's zoning rules. The proposal, which was discussed yesterday by the City Planning Commission, would provide free transfer from the IND to the IRT subway lines and give the developer a building 20 percent larger than the rules permit. The local community board has already approved the plan, which calls for a 47-story metal and glass structure at 599 Lexington Avenue, across 53d Street from the Citicorp Center. Under the city's midtown zoning rules, a developer who improves adjacent subway stations can get a bonus of up to 20 percent greater floor area than is otherwise permitted.