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tv   CBS Morning News  CBS  February 14, 2013 4:30am-5:00am EST

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mega mega merger. american airlines and us airways reach a deal to consolidate into the world's largest airline, but what will it mean for ticket prices. >> the nightmare for thousands of cruise shich passengers finally ends today when their boat is towed into port. and new details about the final hours before the accused killer christopher dorner engaged a violent standoff with police. captioning funded by cbs this is the "cbs morning news" for thursday, february 14th, 2013. good morning. good to be with you. i'm anne-marie green. well, this morning american airlines and us airways will announce they are merging to form the world's largest airline. the deal's been in the works
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since august combining bankrupt american what the much smaller us airways. it has to be approved by the anti- anti-trust regulators but if this mega merger is approved, four airlines will control about three quarters of the u.s. airline traffic. susan mcginnis is in washington with more on this story. susan, good morning. >> good morning. this is the latest mergener this massive consolidation that has taken place over just the last five or six years. this one's going to combine the third and fourth biggest airlines to form the largest. now, the typical winners in these massive deals are usually airlines themselves because they can save on jet fuel and routes and boost profits on wall street. for travelers it often leads to higher fares, fewer flights, and fewer assets. american airlines and us airways are joining forces to join the biggest airline in the world.
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our best goal going forward is to make it the biggest strongest airline in the country, and i suppose that's about to happen. >> the combined carrier will have american airlines' new look and its old name. it combines continental and delta. >> the only way to survive at least some of the airlines believe is to merge together, grow, and then don't overlap as much. >> with american in bankruptcy, it will be up to a federal judge to decide if the deal will be a good one for its creditors. >> american, if it had not done em some sort of a merger, would have been inferior to its bigger competitors in terms of its net worth. >> the department of justice will have to sign off on the deal. they'll look at whether the merger will mean less competition. >> american will have a monopoly on virtually every route that they fly. >> if the deal flies, the world's four biggest airlines would control nearly 70% of all air traffic. experts say ticket prices could take off as a result. >> even though people say that
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you know this particular merger of us airways and american airlines isn't going to raise ticket prices, i don't believe that one bit. >> despite those concerns, the merger is expected to be approved. now, as the industry consolidate, the big loser is said to be travelers which they really have no alternative to this form of travel. mergers like this one in the past has led to higher airfares of 20% to 30% in some markets. >> ooh, that is going to hurt. thank you. susan mcginnis in wark. well, oscar pistorius who made it to the olympics as a sprinter is now in police custody after a woman was shot dead in his home in south africa. there are reports that the woman was pistorius's girlfriend and that he mistook her for a burglar and shot her, but police are not saying what relationship she had with the runner.
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pistorius had made history at the london games last summer when he reached the 400 semifinals despite running with prosthetic legs. the 26-year-old will appear in court later today. the damaged carnival cruise ship try um um triumph is expected to dock later this afternoon. an engine room fire on sunday left it powerless and adrift on the oklahoma city. they admit the ship has experienced previous mechanical problems, but that comes of little comfort to the thousands of passengers still on board. randall pinkston reports. >> reporter: mary and kimberly are waiting in mobile alabama, for their ship to come in. their daughters are aboard the triumph with their fathers. the cruise ship has been without power in the gulf of mexico since sunday. she says her daughter was terrified. >> what hurt me so badly was for her to say, mommy, i'm so scared because i don't know if i'll get to see you again. >> reporter: the trouble started when an engine fire knocked out electrical power on the ship. passengers had been enduring
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foot shortages, overflowing toilets, and hot days without air conditioning. >> they were being requested to use the red bags to urinate and you know go to the restroom. >> reporter: the ship is being towed to a dock here in mobile alabama. carnival's plan is for passengers to board buses to galveston or houston texas, or new orleans, where 1,500 hotel rooms have been booked. >> but her daughter won't be getting on the bus. >> there are five who will be walking away from that ship and coming to us. >> reporter: they're also offering full refunds, a credit toward a future cruise, and $500. in a statement, carnival's ceo said we're very sorry for what our guests have had to endure, not to mention their families on shore. randall pinkston, cbs news, mobile, alabama. well, president obama
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travels to atlanta today to push the economic and social agenda. he laid out in his state of the union address. the president was in asheville, north carolina, yesterday talking about job creation and stimulus spending, all issues that are part of the current budget discussion. mandatory spending cuts known as sequester kick in march 1st. speaker of the house john boehner said all the president is offering is higher taxes and more spending. >> republicans have twice passed bills to replace the sequester. it's incumbent upon the president and senate democrats to show us their plan to stop the sequester from going into effect. >> boehner also opposes the proposal to raise the minimum wage to 9 dlshs. they say they will pump money into the economy but business groups contend it will burden employers and cost jobs. anthony mason reports. >> reporter: at cafe joey's italian restaurant in aubrey,
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texas, owner joe picca is not okay with the president's proposal to increase the minimum wage. >> right now i'm barely making ends meet. >> reporter: picca has 13 employees at his restaurant. >> i'm a business owner myself, and it's hard. >> reporter: five of them earn minimum wage. picca says the higher costs could be crippling. >> i have actually a couple of choices. the two choices are to close down, the other choice is to increase prices. >> reporter: but even if the minimum wamgge is increased to $9 the income of family of four with one worker would still be under $5,000 of the poverty line of $23,950, although tax credits would bring the family slightly above that level. >> we need an economy where
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consumers can afford to spend. >> reporter: he studies wage trends for the national employment law trend. >> is there evidence that raising the minimum wage is beneficial? >> there is. the chicago federal reserve bank modeled the min maim wage increase and found it resulted in very substantial boost in consumer spending in low income communities. >> reporter: that 2011 study by the chicago fed found an overall increase in spending of 2$2,800 by households with minimum wage workers. >> it works just like a tax cut for low wage worker. it gives them more money in their pockets to spend at local businesses. >> reporter: if it had kept pace with inflation, studies show, it would now be $10.56. the white house says a $9 minimum wage would only bring buying power back up to 1981 levels. anthony mason, cbs news, new york. well, coming up on the morns news, the final showdown. police reveal new details on the standoff and fire that's believed to have killed former
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well it may take essentially more days before well it may take several more days before authorities positively identify the human remains burned out in a burned down cabin, but police have called off the search on christopher dorner who had a dead will i vendetta against the los angeles police department. teresa garcia reports. >> reporter: they were the last to see him before the shoot-out that ended in flames. >> he opened the door and came out at us. he had his gun drawn. >> reporter: the reynolds owned the mountain vista resort where dorner was apparently hiding from law enforcement right across the street from the command center. reynolds say it was they not housekeeper, who dorner had tied up. >> he talked to us, trying to calm us down and saying very frequently he would not kill us. >> reporter: they say dorner then stole their car. it was that getaway that led to
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this shoot-out with police inside another cabin. the shoot-out ended when police threw pyrotechnic tear gas into the cabin. moments later it was on fire. >> we did not intentionally burn down that cabin to get mr. dorner out. >> reporter: detective jeremiah mckay was killed in that gun battle. law enforcement in the communities had started to withdraw officers when the search for dorner was turning up empty that. they swarmed again during the standoff, but now police are beginning to open up these roadblocks. many here are relieved it's all over. >> very glad that he's taken care of because he was killing people. >> reporter: one of those victims, riverside police officer michael crane, was laid to rest wednesday. hundreds of police officers from across southern california attended the funeral. teresa garcia, cbs news angeles
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oaks, california. pope benedict delivered his final public mass on wednesday. >> thousands packed into st. peter's basilica to pay tribute to the pontiff who will step down at the end of this month. when he left for the last time, the crowd gave him a standing ovation. many had tears in their eyes. he's the first pope to resign in 600 years. straight ahead, your thursday morning weather and in this morning's "moneywatch" report, from candy to cards and flowers to jewelry, how much are you spending on your sweetheart this valentine's day? sweetheart this valentine's day?
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here's a look at to here's a look at today's forecast in some cities around the country. 46 the high in new york turning sunny. miami, shourks 80. chicago, showers, 42. dallas, sunny, 68, los angeles, high of 75. >> and time now for a check of the national forecast. light snow will fall in parts of the midwest. up to a foot could drop in michigan's upper peninsula. will be clearing in the northwest. a few showers in the pacific northwest and the rest of the west will be dry and it will be dry in the south as well. on the "cbs moneywatch" now, the fate of saturday mail delivery, and how much are you spending for valentine's day? ashley morrison is here in new york with that and more. good morning, ashley. >> good morning to you, anne-marie. well, modest gains in asian markets today ahead of a meeting by g-20 finance ministers this weekend. tokyo's nikkei gained half a
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percent while hong kong's hang seng added nearly 1%. a mixed day on wall street as investors worry that americans aren't eating out enough. mcdonald's stock fell and so did other fast food companies. the dow dropped to the highest to 13,982. the nasdaq went up 10 points. post master general patrick donohoe was on capitol hill wednesday. he begged congress not to block plans to end saturday delivery. ending first-class delivery on saturday would saving the agency $2 billion a year. the postal service lost $1.3 billion in the final three months of last year. americans are cutting back on spending last month. the government said retail sales went up a tenth of a percent in january after going up half a percent in december. the small increase suggests the expiration of the payroll tax cut and higher tax rates for wealthy americans are hurting the economy.
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and spending is in the air this valentine's day. the national retail federation says sales are up this year, averaging around $130 per person. that's about $4 more than last year. men will spend almost twice as much as women. guys will plunk down an average of $175 while the ladies will spend just $88. and what happened to love doesn't cost a thing? >> is that what they say? i was planning on putting a little sticky note on the fridge to, you know nudge someone, given someone somies. >> there you go. ashley morrison here in new york. in sports they renew one of college basketball's fiercest rivalries. before the game the team's managers faced off for a match of their own. the duke squad won with a three-pointer at the buzzer but the main event wouldn't be as close. the second ranked blue devils take down unc, 73-68. and check out this wild shot miami's durand scott puts up. he's off balance. tosses the ball.
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the ball goes in. miami beats florida state, 74-68. and nba's best team needs some late game luck to beat one of its worst. leonard hit the three-pointer with less than three seconds left to give san antonio a one-point lead over cleveland, but the cavs have one last chance, but kyrie irving's mark is off the mark. the spurts win, 96-95. when we return, the hard truth about soft drinks. we'll tell you why the government is pushing to reduce the sweeteners in your soda. so ditch the brown bag for something better. like our bacon ranch quesadillas or big mouth burger bites, served with soup or sala over cleveland but the cavs have starting at just 6 bucks at chili's. if you don't feel good when you leave the bathroom, you've got the wrong toilet paper. you want it to get you clean... gently. as long as i use quilted northern ultra plush® i'm happy... and positive i'm clean. quilted northern ultra plush with the innerlux layer. for a comfortable, confident clean, or your money back.
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well, here's a look a well, here's a look at today's forecast in some cities around the country. washington, d.c., atlanta, and st. louis, mostly sunny, all in the 50s, but atlanta gets up to 58 degrees. denver, afternoon snow, a high of 38, and seattle can expect showers, a high of 52. it is the latest proposal in the war on obesity.
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a major consumer group says we are drinking too much sugar, and as marlie hall reports, it says it's time to lighten up on the sweeteners. >> reporter: this is how much high fructose corn syrup consumer advocates say the average american drinks each year. that's the sugar in soda. >> that's about 70,000 calories per year. >> reporter: the center for science in the public interest is calling on the food and drug administration to limit the sugar content in soda and other sugary drinks. the group says current levels are harmful, leading to obesity, heart disease, and other health problems. >> when you're faced with a diabetes epidemic, the situation in which two-thirds of american adults are overweight or obese, the government has a responsibility to do something about that. >> reporter: the average 20-ounce bottle of soda has about 17 teaspoons of sugar in it. that's double the daily recommendation. experts say the problem is it's
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easy to consume too much sugar when it's in a liquid. >> to just eat 16 teaspoons of sugar, it's almost impossible to do that, but you can gulp it down in a minute or two and go back for another. >> reporter: the beverage industry says it is doing its part, noting the calories have come down in the last 15 years. others think something has to be done. >> somebody needs to help them in order to protect their health. >> reporter: people are actually drinking fewer sugary beverages than a decade ago, but it's still four times what they drank in the 1950s. marlie hall, cbs news, new york. just in time for valentine's day, it's mating season for the nearly extinct tasmanian devil. the sound of romance. these two devils were released into the wild and the female is considered genetic royalty
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because she's cancer-free. the disease almost wiped out the species. coming up after your local news on "cbs this morning," oscar-winning actress helen hunt. i'm anne-marie green. this is the "cbs morning news." e-marie green. this is the "cbs morning news." unteer to help those in need. when a twinge of back pain surprises him. morning starts in high spirits but there's a growing pain in his lower back. as lines grow longer his pain continues to linger. but after a long day of helping others, he gets some helpful advice. just two aleve have the strength to keep back pain away all day. today, jason chose aleve. just two pills for all day pain relief. try aleve d for strong all day long sinus and headache relief. for our bold taste -- and some people found that a little bit strong. but as soon as they tasted blonde roast boy they were on board. ♪ ♪
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4 minutes before 5:00 on this valentine's day. a cold and wintery start to the day. marty's over at first warning weather. >> let's take a look at the out look. get your sunglasses out. the low 30s now. 47 at lunch
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with a high of near 50. anthony brown says expanding medicaid in maryland is a step towards implementing the federal reform law. >> james hair from cumberland is now laid to rest. he served in the korean war and was missing for 62 years. >> already in the news this morning, unanswered questions a closer look at what went wrong during a baltimore city police training exercise that injured a police recruit. >> a little girl killeded by a stray bullet, wjz is live with what her family is doing. >> more news, first warning weather and your first traffic report of the morning in a couple of minutes.
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