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CNN Live At Daybreak
California Mourns Mudslide Victims; Evacuated South Carolinians Head Home
Aired January 13, 2005 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The final victims -- California mourns a family's huge loss after the mud slide.
Pro baseball finds a way to punish steroid users.
And what's with this? What's with the swastika on Prince Harry's arm?
It is Thursday, January 13.
You are watching DAYBREAK.
And good morning to you.
From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.
Now in the news, 10 people are confirmed dead and all the missing are accounted for in La Conchita, California after the mud slide there. Searchers pulled the bodies of a mother and three daughters from the rubble yesterday. The father had left the house to get ice cream when the mud slide happened.
Gunmen in Baghdad opened fire on a minibus this morning, killing all six Iraqis on board. Then the gunmen abducted a Turkish businessman who was waiting for the bus outside of his hotel. Witnesses say there were at least 10 gunmen.
In South Carolina, about half of the 5,400 residents forced out by a deadly gas cloud last week are going home today. The chlorine gas from a train wreck killed nine people. Later this hour, we'll take you to a news conference on this and in just a few minutes we'll talk with a reporter live from near there.
To the forecast center now, though, and Chad -- good morning.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.
Welcome back, by the way.
COSTELLO: Thank you.
MYERS: We sent Kelly Wallace up to Zabar's to bring you some chicken soup yesterday, so maybe that was the reason you're back.
COSTELLO: It was helpful. MYERS: Good.
(WEATHER REPORT)
COSTELLO: Out in California, the bodies of those buried in a mountain of mud have all been found. Now some residents are searching for answers to the tragedy. The community of La Conchita wants to know why there was no evacuation order in place before the mud slide and why there was no warning from laser and mirror sensors installed on part of the bluff.
CNN's Eric Philips has more from the site of that mud slide that claimed 10 lives.
(BEGIN VIDEO TAPE)
ERIC PHILIPS, CNN CORRESPONDENT (voice-over): Governor Arnold Schwarzenegger toured the area by air and by ground to see for himself the devastation the mudslides caused.
GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: In the past few days, we have seen the power of nature cause damage and despair. But we will match that power with our own resolve.
PHILIPS: So far, officials have confirmed 10 deaths as a result of Monday's mudslides.
UNIDENTIFIED FEMALE: So many of our friends have gone.
PHILIPS: A somber meeting for residents as the names of the dead were read.
They are using dogs, cameras, listening devices and radar equipment to seek out air pockets where survivors may still be trapped. Since Monday, 10 have been pulled from the rubble alive.
UNIDENTIFIED MALE: All of our employees have been putting blood, sweat and tears into the effort here.
PHILIPS: The last time residents here saw a mud slide was 1995. A protective wall was built then. But residents say officials didn't do enough to make sure it was reinforced.
UNIDENTIFIED FEMALE: We asked to have the hill terraced. We were told it was too expensive, it couldn't be done. How much money have they spent on the rescue now of dead bodies when that could have all been prevented?
PHILIPS (on camera): Authorities say they did everything they could to keep this community safe, but that there was no way they could have predicted this mud slide. The search and rescue mission will continue, at least until Thursday.
In La Conchita, California, I'm Eric Philips, reporting.
(END VIDEOTAPE) COSTELLO: More news from across America this morning.
Nine people were injured in an apparent natural gas explosion at a Chicago shopping mall. None of the injuries serious. The blast flipped over about a dozen cars and ripped a 50 yard trench in the parking lot at the Ford City Mall.
And two people are dead after a massive pileup on Interstate 96 near Lansing, Michigan. More than three dozen others are injured. Thick fog blamed for several accidents in both directions. The pileup involved around 200 vehicles.
And in Florida, they are cleaning up tar balls that have washed up on beaches between Miami and Fort Lauderdale. The crews don't know exactly where the tar came from. Tar balls form when fuel congeals in seawater, in case you are wondering.
Now for our "Security Watch," passengers from a British Airways flight finally made it to New York after being forced to turn around in mid-flight. The plane returned to London when it was discovered that a passenger was on the no fly list. The man was put on the list in late December due to possible ties with terrorists in Morocco. He's been questioned and released.
Thirty-one times -- that's how often someone has shown a laser beam into the cockpit of a plane since December 31. That's a rate of nearly three times a day.
Transportation Secretary Norman Mineta is taking action, calling those responsible stupid.
(BEGIN VIDEO CLIP)
NORMAN MINETA, TRANSPORTATION SECRETARY: Shining these airplanes -- these lasers at an airplane is not a harmless prank. It is stupid and it is dangerous. These people are putting others at risk and law enforcement authorities are going to seek these folks out and if they are caught, they are going to be prosecuted. This is not a harmless prank.
(END VIDEO CLIP)
COSTELLO: He also outlined new guidelines for pilots. Beginning on January 19, all pilots will be required to report any laser sightings to air traffic controllers, who would then advise all pilots in the area and inform police. And then Norman Mineta's department would take over, making sure every case is aggressively prosecuted.
But is it enough to allow pilots to fly safely?
Live now to Captain Terry McVenes, executive air safety chairman for the Airline Pilots Association.
Good morning.
TERRY MCVENES, AIRLINE PILOTS ASSOCIATION INTERNATIONAL: Good morning, Carol.
COSTELLO: Are you satisfied with Secretary Mineta's guidelines?
MCVENES: Well, we think this is really a good first step for gathering information about these laser incidents so that we can better assess if there is a risk and if there is a risk, exactly what it is that we have to do. So, yes, we're very satisfied with the direction that Secretary Mineta has taken.
COSTELLO: Well, let's talk about that risk. The FBI says these laser incidents are not terror related.
Why is it all of a sudden we're hearing of so many incidents, do you think?
MCVENES: Well, that remains to be seen. We're -- one -- before we can really do anything with it, we need to understand exactly what the impact of these events have had. Laser events are not new to aviation. They've been going on for some time. The first report that we were investigating was back in 1995 with some of laser shows that took place in Las Vegas. So we've been very involved with this over the years, to evaluate the effects of lasers on pilots and what needs to be done about it.
COSTELLO: Well, a question for you then. If this problem has been around since we know, 1995, why hasn't something been done about it?
MCVENES: Well, when you put in the context of the actual number of operations that take place on a daily basis, it's a very small number of incidents. There's thousands of flights every day and this is not a lot of incidents compared to that. Flying remains very safe and we just need to find out exactly what the impact of this is right now.
COSTELLO: Could it be as simple as having pilots wear protective goggles?
MCVENES: Well, again, with so many flights out there, it would be hard to develop procedures where the pilots would always have these goggles on. We'd be better served by simply looking at it more from a preventive standpoint, figuring out what the threat is, seeing if it is part of the terrorist movement and if it is, then find out who these people are and prosecute them accordingly.
COSTELLO: Captain Terry McVenes from the Airline Pilots Association.
Thank you for joining DAYBREAK this morning.
MCVENES: Thank you.
COSTELLO: Please stay tuned to CNN all day and all night for the most reliable news about your security.
Nearly half of the people living near the site of that deadly chlorine leak in South Carolina will be going home just about two and a half hours from now.
Reporter Wade Phillips of CNN affiliate WJBF has the latest from the town of Aiken -- good morning.
WADE PHILLIPS, WJBF CORRESPONDENT: Good morning, Carol.
For the last week, people in a one mile circle around the train accident site have been away from their homes. They were evacuated from their homes late Thursday night and haven't been able to go back since.
Now, a significant number of those people will finally be allowed back in their homes beginning about 8:30 this morning.
The question is what they're going to find when they get there. We're told that there will be significant electrical damage to many of these homes because of the effects of the chlorine. That electrical damage will be most heavy, we're told, on the outside of these homes.
Now the question is when the rest of the people will get to go home. About 5,400 people are out of their homes right now. At the very least, or at the very most, about half of them will be going home today. We're told it could be several days before the rest of those people get a chance to return to their homes.
Now, we're expecting a press conference coming up within the hour to tell us the very latest on when these people will be allowed to return. We will have that and we will let you know the latest information as soon as it becomes available -- Carol, back to you.
COSTELLO: And we do appreciate that.
Wade Phillips reporting live from Aiken this morning.
Still to come on DAYBREAK, being a huge American company has its pros and cons. Now Wal-Mart has come up with a way to fend off the critics. We'll tell you about its plan at 6:15.
And you know how much it costs you to fly, but do you know how much it really costs the airlines to get you from Point A to Point B? Explaining the expenses at 18 minutes past.
And royal ruckus. Hear what some people are demanding of Prince Harry after he turns up wearing a swastika on his arm.
But first, here's a look at what else is making news this Thursday morning.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
COSTELLO: Your news, money, weather and sports.
It's 6:13 Eastern.
Here's what's all new this morning.
A second assassination attempt failed against an Iraqi presidential candidate who favors ties with Israel. The Baghdad house of the Democratic Islamic Party chairman was attacked with gunfire and grenades. No injuries reported.
Five days ago, she buried her husband, Representative Robert Matsui of California. Yesterday, Doris Matsui launched her campaign for his congressional seat. She's endorsed by house Democratic leader Nancy Pelosi.
In money news, brisk iPod and computer sales helped Apple achieve its best quarter ever. Revenue jumped 75 percent over last year, to $3.5 billion. The stock jumped $8 in trading after the announcement.
In culture, high kicks will be back. On Broadway, the legendary musical, "A Chorus Line," which first opened off Broadway in 1975, will return to the great white way in September.
In sports, boxing promoter Don King is suing ESPN for $2.5 billion. That's billion. He ain't messing around. The suit claims a "Sports Century" segment calls him a snake oil salesman, a shameless huckster and worse -- Chad.
MYERS: Is ESPN even worth $2.5 billion?
COSTELLO: I don't know. He's just going for the gusto. I mean why not?
MYERS: I mean he's just, he's trying to get the national debt.
(WEATHER REPORT)
COSTELLO: Those are the latest headlines for you this morning.
If you're in the airport clutching that ticket, which should have cost you a lot less in these times, we've got some interesting information on why it costs so much to fly.
Ben Mutzabaugh, "USA Today's" travel expert, joins us, as is usual, at this time.
Good morning, Ben. BEN MUTZABAUGH, "USA TODAY": Good morning, Carol.
COSTELLO: So let's start with what, on average, it costs airlines to fly one round trip flight.
MUTZABAUGH: Sure.
We looked at Atlanta to New York, La Guardia. And these numbers are very ball park. But for an average flight, looking at the planes that are most common on that route, it costs the average airline about $16,000 to make a round trip flight. And...
COSTELLO: $16,000? MUTZABAUGH: Yes.
COSTELLO: OK, let's break down that $16,000.
MUTZABAUGH: Sure. We have 62 percent of that that goes to fuel and waiver costs. And that's about roughly 31 percent each. So that takes up the bulk of their expenses for that flight. But then you also have the aircraft rent and lease, which is 20 percent. And then, you know, whether you lease it or whether you're renting it, that's also a pretty big expense for the airlines. And then you have the maintenance, 13 percent. Really, it comes back to the labor and fuel. That's what's eating up a lot of their costs right now.
COSTELLO: OK, labor and fuel.
So, you know, I've always pondered -- why is a smaller airline able to charge less per ticket than a larger airline?
MUTZABAUGH: Well, there are some standards that they use in the industry. For example, a discount carrier like Southwest, their average cost -- it's industry jargon, but the best way to think of it is picture one airline seat. It costs Southwest $0.07 to fly that one airline seat one mile. Whereas a carrier like Delta or American, it costs them $0.12 to fly that one seat one mile. And the way that will make sense to you or the average person would be $0.12 to $0.07 for the same distance for one seat. That's almost, you know, what, 40 percent higher for the major carriers than for the discount carriers.
So that's why these discount carriers can offer fares that are so low. And the major carriers have to match these fares because they don't want to lose business. And obviously when you can see how much difference there is in the operating cost, well, the major carriers are really struggling to make money with the prices they're being forced to teaching.
COSTELLO: Again, though, doesn't salary have something to do with that, too?
MUTZABAUGH: It does. You know, the salaries have come down a little bit at the major carriers, but they still have issues with pensions and some other expensive legacies of when the airline industry was flush with money. They still have some issues that are costing them a lot of money. And the low cost carriers, which came of age later, don't have all of these other labor related burdens that some of the major carriers have.
COSTELLO: Interesting.
Well, thank you for putting it all into perspective for us.
We appreciate it.
MUTZABAUGH: My pleasure.
COSTELLO: Ben Mutzabaugh from "USA Today" joining DAYBREAK this morning. Time now for a little "Business Buzz."
Wal-Mart going on the offensive today to debunk what it calls an urban legend.
Carrie Lee is at the Nasdaq market site to ex -- what urban legend?
CARRIE LEE, CNN CORRESPONDENT: Well, the urban legend, Carol, that they take advantage of employees, unfair labor practices, all of those good things we've heard so much about. The world's largest retailer is now fighting back against negative publicity by putting an open letter from its CEO, Lee Scott, in over 100 newspapers today.
Now, "USA Today" reports that Scott says he's going to offer the unfiltered truth because the company's critics were creating an urban legend. The world's largest retailer is also the largest private employer in the U.S. and the company's image has been hurt by lawsuits involving labor practice, as well as criticism about its impact on competitors. So look out for these ads in newspapers today.
That is the latest on Wal-Mart.
We'll keep an eye on that stock.
Apple Computer could be a nice mover today. Shares up about 12 percent after hours last night after seeing profits quadruple in the recent quarter thanks to the success of those iPods.
Futures across-the-board, though, looking flat to slightly lower. We'll get a look at weekly jobless claims and retail sales numbers coming out a little later today, Carol. That could give us some direction. A lot going on.
COSTELLO: You're not kidding.
Carrie Lee live from the NASDAQ market site.
Thank you.
It may be strike three for illegal substances in major league baseball. And the penalties for some players could be pretty tough.
Ray D'Alessio of CNN Sports has all the details for you coming up.
Also, Ali Velshi back with more on your credit history and you and why you need to know the score.
(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)
WALTER UPDEGRAVE, SENIOR EDITOR, "MONEY": When you reach age 50, you want to make sure that you're taking advantage of the catch up provisions that were put into the law a couple of years ago for people 50 and older. So, for example, if you're contributing to a 401K, you probably are allowed to add another couple thousand dollars in the form of a catch up contribution. And also with an IRA or a Roth IRA, you're also allowed to put in these catch up contributions.
So essentially what this allows you to do is put a little more money away on a tax deferred basis and increase the value of your retirement accounts.
(END VIDEO CLIP)
COSTELLO: Is the crackdown finally coming? Major league baseball is expected to announce new rules concerning steroids today and players could be in for some harsh realities.
Ray D'Alessio joins me now live from Atlanta to explain these new rules.
Take it away -- Ray.
RAY D'ALESSIO, CNN CORRESPONDENT: Hey, good morning to you, Carol.
And, Carol, first off, I'm sure in a perfect world fans would have loved to see players banned for life for at least one positive test, but the bottom line, this new reported plan is a step in the right direction.
Now, comparing the two, under the old plan, the first time a player tested positive for steroids he was subject to only treatment in counseling. New plan, reportedly a first time offense could result in a possible 10 day suspension.
Old plan, a player wouldn't face a one year suspension until the fifth offense. New plan, a fourth offense could result in a one year suspension.
And as far as the randomness of testing, Carol, under the old system, players faced only tests during spring training, from the time that spring training started to the end of the last day of the season and that was only once a year. Now there could be random tests during and in the off season, as well.
COSTELLO: Really?
D'ALESSIO: So, again, a big step in the right direction. In a perfect world, again, fans, I'm sure they would like to see players banned for life for disrupting the so-called purity of baseball. But at least this is a step in the right direction.
COSTELLO: There's still so much to iron out, though, isn't there, as far as the players who are accused of using steroids from past years?
D'ALESSIO: Exactly. And will we ever know, again, the only player that has come right out and has admitted yes, I took steroids, I made a mistake, was the Yankees' Jason Giambi. He is coming back to play this year. He has already said he will show up for spring training. The big question is how is he going to perform in that national spotlight? I mean people are going to look at him, he's going to be booed in the stands, you know, he's going to get jeered. And whether or not he is able to, you know, maintain that level of consistent, you know, consistent competitive play throughout the year while he's under this scrutiny is yet to be seen. But, again, if you're a player who has not taken steroids, never even tried them, you like this new policy because, again, it takes, you know, some of the mystery out of the game.
COSTELLO: Yes. I was just amazed that the players and the owners managed to come up with any agreement at all.
D'ALESSIO: And, again, it's often been said that the players union is one of the strongest unions around. And, you know, I mentioned it to you the last half hour, the fact that they got this thing basically done within the last two months, that's very good. I mean that showed that there was a sense of urgency. It was their message to the fans that say hey, we're sorry. We realize we needed something to be done and we needed it to be done quickly.
COSTELLO: Well, you know the reason, the reason the fans were angry. And they knew they had to appease the fans. So I say hurray for the fans.
D'ALESSIO: Exactly.
COSTELLO: Yes.
D'ALESSIO: A victory.
COSTELLO: Thank you, Ray.
D'ALESSIO: OK, Carol.
COSTELLO: Still to come on DAYBREAK, he was a witness for the defense, but could the top officer in the unit undermine the soldier accused of abuse at Abu Ghraib?
And Prince Harry's wardrobe malfunction? Hmmm, royal criticism this morning for one poor choice of costume.
(COMMERCIAL BREAK)
COSTELLO: Good morning to you.
Welcome to DAYBREAK.
From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.
Now in the news, 10 people confirmed dead and all the missing are accounted for in La Conchita, California after the mud slide there. Searchers pulled the bodies of a mother and three daughters from the rubble yesterday. Three more bodies have not yet been found. A new indictment means a 36-year-old woman accused of killing a pregnant woman and taking the baby from the dying woman's womb could face the death penalty. Still, a federal prosecutor says a decision on that is months away.
British Finance Minister Gordon Brown says he'll try to raise $10 million for the worldwide fight against AIDS. Brown wants public and private money for a global fund to expand AIDS programs in poor nations.
And the delivery of aid to victims of the Asian tsunamis hits a roadblock. Indonesia's military says international aid workers must now be accompanied by soldiers because of the threat of rebel attacks.
To the forecast center now and Chad -- good morning.
MYERS: Good morning, Carol.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Aired January 13, 2005 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: The final victims -- California mourns a family's huge loss after the mud slide.
Pro baseball finds a way to punish steroid users.
And what's with this? What's with the swastika on Prince Harry's arm?
It is Thursday, January 13.
You are watching DAYBREAK.
And good morning to you.
From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.
Now in the news, 10 people are confirmed dead and all the missing are accounted for in La Conchita, California after the mud slide there. Searchers pulled the bodies of a mother and three daughters from the rubble yesterday. The father had left the house to get ice cream when the mud slide happened.
Gunmen in Baghdad opened fire on a minibus this morning, killing all six Iraqis on board. Then the gunmen abducted a Turkish businessman who was waiting for the bus outside of his hotel. Witnesses say there were at least 10 gunmen.
In South Carolina, about half of the 5,400 residents forced out by a deadly gas cloud last week are going home today. The chlorine gas from a train wreck killed nine people. Later this hour, we'll take you to a news conference on this and in just a few minutes we'll talk with a reporter live from near there.
To the forecast center now, though, and Chad -- good morning.
CHAD MYERS, CNN METEOROLOGIST: Good morning, Carol.
Welcome back, by the way.
COSTELLO: Thank you.
MYERS: We sent Kelly Wallace up to Zabar's to bring you some chicken soup yesterday, so maybe that was the reason you're back.
COSTELLO: It was helpful. MYERS: Good.
(WEATHER REPORT)
COSTELLO: Out in California, the bodies of those buried in a mountain of mud have all been found. Now some residents are searching for answers to the tragedy. The community of La Conchita wants to know why there was no evacuation order in place before the mud slide and why there was no warning from laser and mirror sensors installed on part of the bluff.
CNN's Eric Philips has more from the site of that mud slide that claimed 10 lives.
(BEGIN VIDEO TAPE)
ERIC PHILIPS, CNN CORRESPONDENT (voice-over): Governor Arnold Schwarzenegger toured the area by air and by ground to see for himself the devastation the mudslides caused.
GOV. ARNOLD SCHWARZENEGGER (R), CALIFORNIA: In the past few days, we have seen the power of nature cause damage and despair. But we will match that power with our own resolve.
PHILIPS: So far, officials have confirmed 10 deaths as a result of Monday's mudslides.
UNIDENTIFIED FEMALE: So many of our friends have gone.
PHILIPS: A somber meeting for residents as the names of the dead were read.
They are using dogs, cameras, listening devices and radar equipment to seek out air pockets where survivors may still be trapped. Since Monday, 10 have been pulled from the rubble alive.
UNIDENTIFIED MALE: All of our employees have been putting blood, sweat and tears into the effort here.
PHILIPS: The last time residents here saw a mud slide was 1995. A protective wall was built then. But residents say officials didn't do enough to make sure it was reinforced.
UNIDENTIFIED FEMALE: We asked to have the hill terraced. We were told it was too expensive, it couldn't be done. How much money have they spent on the rescue now of dead bodies when that could have all been prevented?
PHILIPS (on camera): Authorities say they did everything they could to keep this community safe, but that there was no way they could have predicted this mud slide. The search and rescue mission will continue, at least until Thursday.
In La Conchita, California, I'm Eric Philips, reporting.
(END VIDEOTAPE) COSTELLO: More news from across America this morning.
Nine people were injured in an apparent natural gas explosion at a Chicago shopping mall. None of the injuries serious. The blast flipped over about a dozen cars and ripped a 50 yard trench in the parking lot at the Ford City Mall.
And two people are dead after a massive pileup on Interstate 96 near Lansing, Michigan. More than three dozen others are injured. Thick fog blamed for several accidents in both directions. The pileup involved around 200 vehicles.
And in Florida, they are cleaning up tar balls that have washed up on beaches between Miami and Fort Lauderdale. The crews don't know exactly where the tar came from. Tar balls form when fuel congeals in seawater, in case you are wondering.
Now for our "Security Watch," passengers from a British Airways flight finally made it to New York after being forced to turn around in mid-flight. The plane returned to London when it was discovered that a passenger was on the no fly list. The man was put on the list in late December due to possible ties with terrorists in Morocco. He's been questioned and released.
Thirty-one times -- that's how often someone has shown a laser beam into the cockpit of a plane since December 31. That's a rate of nearly three times a day.
Transportation Secretary Norman Mineta is taking action, calling those responsible stupid.
(BEGIN VIDEO CLIP)
NORMAN MINETA, TRANSPORTATION SECRETARY: Shining these airplanes -- these lasers at an airplane is not a harmless prank. It is stupid and it is dangerous. These people are putting others at risk and law enforcement authorities are going to seek these folks out and if they are caught, they are going to be prosecuted. This is not a harmless prank.
(END VIDEO CLIP)
COSTELLO: He also outlined new guidelines for pilots. Beginning on January 19, all pilots will be required to report any laser sightings to air traffic controllers, who would then advise all pilots in the area and inform police. And then Norman Mineta's department would take over, making sure every case is aggressively prosecuted.
But is it enough to allow pilots to fly safely?
Live now to Captain Terry McVenes, executive air safety chairman for the Airline Pilots Association.
Good morning.
TERRY MCVENES, AIRLINE PILOTS ASSOCIATION INTERNATIONAL: Good morning, Carol.
COSTELLO: Are you satisfied with Secretary Mineta's guidelines?
MCVENES: Well, we think this is really a good first step for gathering information about these laser incidents so that we can better assess if there is a risk and if there is a risk, exactly what it is that we have to do. So, yes, we're very satisfied with the direction that Secretary Mineta has taken.
COSTELLO: Well, let's talk about that risk. The FBI says these laser incidents are not terror related.
Why is it all of a sudden we're hearing of so many incidents, do you think?
MCVENES: Well, that remains to be seen. We're -- one -- before we can really do anything with it, we need to understand exactly what the impact of these events have had. Laser events are not new to aviation. They've been going on for some time. The first report that we were investigating was back in 1995 with some of laser shows that took place in Las Vegas. So we've been very involved with this over the years, to evaluate the effects of lasers on pilots and what needs to be done about it.
COSTELLO: Well, a question for you then. If this problem has been around since we know, 1995, why hasn't something been done about it?
MCVENES: Well, when you put in the context of the actual number of operations that take place on a daily basis, it's a very small number of incidents. There's thousands of flights every day and this is not a lot of incidents compared to that. Flying remains very safe and we just need to find out exactly what the impact of this is right now.
COSTELLO: Could it be as simple as having pilots wear protective goggles?
MCVENES: Well, again, with so many flights out there, it would be hard to develop procedures where the pilots would always have these goggles on. We'd be better served by simply looking at it more from a preventive standpoint, figuring out what the threat is, seeing if it is part of the terrorist movement and if it is, then find out who these people are and prosecute them accordingly.
COSTELLO: Captain Terry McVenes from the Airline Pilots Association.
Thank you for joining DAYBREAK this morning.
MCVENES: Thank you.
COSTELLO: Please stay tuned to CNN all day and all night for the most reliable news about your security.
Nearly half of the people living near the site of that deadly chlorine leak in South Carolina will be going home just about two and a half hours from now.
Reporter Wade Phillips of CNN affiliate WJBF has the latest from the town of Aiken -- good morning.
WADE PHILLIPS, WJBF CORRESPONDENT: Good morning, Carol.
For the last week, people in a one mile circle around the train accident site have been away from their homes. They were evacuated from their homes late Thursday night and haven't been able to go back since.
Now, a significant number of those people will finally be allowed back in their homes beginning about 8:30 this morning.
The question is what they're going to find when they get there. We're told that there will be significant electrical damage to many of these homes because of the effects of the chlorine. That electrical damage will be most heavy, we're told, on the outside of these homes.
Now the question is when the rest of the people will get to go home. About 5,400 people are out of their homes right now. At the very least, or at the very most, about half of them will be going home today. We're told it could be several days before the rest of those people get a chance to return to their homes.
Now, we're expecting a press conference coming up within the hour to tell us the very latest on when these people will be allowed to return. We will have that and we will let you know the latest information as soon as it becomes available -- Carol, back to you.
COSTELLO: And we do appreciate that.
Wade Phillips reporting live from Aiken this morning.
Still to come on DAYBREAK, being a huge American company has its pros and cons. Now Wal-Mart has come up with a way to fend off the critics. We'll tell you about its plan at 6:15.
And you know how much it costs you to fly, but do you know how much it really costs the airlines to get you from Point A to Point B? Explaining the expenses at 18 minutes past.
And royal ruckus. Hear what some people are demanding of Prince Harry after he turns up wearing a swastika on his arm.
But first, here's a look at what else is making news this Thursday morning.
(COMMERCIAL BREAK)
(STOCK MARKET REPORT)
COSTELLO: Your news, money, weather and sports.
It's 6:13 Eastern.
Here's what's all new this morning.
A second assassination attempt failed against an Iraqi presidential candidate who favors ties with Israel. The Baghdad house of the Democratic Islamic Party chairman was attacked with gunfire and grenades. No injuries reported.
Five days ago, she buried her husband, Representative Robert Matsui of California. Yesterday, Doris Matsui launched her campaign for his congressional seat. She's endorsed by house Democratic leader Nancy Pelosi.
In money news, brisk iPod and computer sales helped Apple achieve its best quarter ever. Revenue jumped 75 percent over last year, to $3.5 billion. The stock jumped $8 in trading after the announcement.
In culture, high kicks will be back. On Broadway, the legendary musical, "A Chorus Line," which first opened off Broadway in 1975, will return to the great white way in September.
In sports, boxing promoter Don King is suing ESPN for $2.5 billion. That's billion. He ain't messing around. The suit claims a "Sports Century" segment calls him a snake oil salesman, a shameless huckster and worse -- Chad.
MYERS: Is ESPN even worth $2.5 billion?
COSTELLO: I don't know. He's just going for the gusto. I mean why not?
MYERS: I mean he's just, he's trying to get the national debt.
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COSTELLO: Those are the latest headlines for you this morning.
If you're in the airport clutching that ticket, which should have cost you a lot less in these times, we've got some interesting information on why it costs so much to fly.
Ben Mutzabaugh, "USA Today's" travel expert, joins us, as is usual, at this time.
Good morning, Ben. BEN MUTZABAUGH, "USA TODAY": Good morning, Carol.
COSTELLO: So let's start with what, on average, it costs airlines to fly one round trip flight.
MUTZABAUGH: Sure.
We looked at Atlanta to New York, La Guardia. And these numbers are very ball park. But for an average flight, looking at the planes that are most common on that route, it costs the average airline about $16,000 to make a round trip flight. And...
COSTELLO: $16,000? MUTZABAUGH: Yes.
COSTELLO: OK, let's break down that $16,000.
MUTZABAUGH: Sure. We have 62 percent of that that goes to fuel and waiver costs. And that's about roughly 31 percent each. So that takes up the bulk of their expenses for that flight. But then you also have the aircraft rent and lease, which is 20 percent. And then, you know, whether you lease it or whether you're renting it, that's also a pretty big expense for the airlines. And then you have the maintenance, 13 percent. Really, it comes back to the labor and fuel. That's what's eating up a lot of their costs right now.
COSTELLO: OK, labor and fuel.
So, you know, I've always pondered -- why is a smaller airline able to charge less per ticket than a larger airline?
MUTZABAUGH: Well, there are some standards that they use in the industry. For example, a discount carrier like Southwest, their average cost -- it's industry jargon, but the best way to think of it is picture one airline seat. It costs Southwest $0.07 to fly that one airline seat one mile. Whereas a carrier like Delta or American, it costs them $0.12 to fly that one seat one mile. And the way that will make sense to you or the average person would be $0.12 to $0.07 for the same distance for one seat. That's almost, you know, what, 40 percent higher for the major carriers than for the discount carriers.
So that's why these discount carriers can offer fares that are so low. And the major carriers have to match these fares because they don't want to lose business. And obviously when you can see how much difference there is in the operating cost, well, the major carriers are really struggling to make money with the prices they're being forced to teaching.
COSTELLO: Again, though, doesn't salary have something to do with that, too?
MUTZABAUGH: It does. You know, the salaries have come down a little bit at the major carriers, but they still have issues with pensions and some other expensive legacies of when the airline industry was flush with money. They still have some issues that are costing them a lot of money. And the low cost carriers, which came of age later, don't have all of these other labor related burdens that some of the major carriers have.
COSTELLO: Interesting.
Well, thank you for putting it all into perspective for us.
We appreciate it.
MUTZABAUGH: My pleasure.
COSTELLO: Ben Mutzabaugh from "USA Today" joining DAYBREAK this morning. Time now for a little "Business Buzz."
Wal-Mart going on the offensive today to debunk what it calls an urban legend.
Carrie Lee is at the Nasdaq market site to ex -- what urban legend?
CARRIE LEE, CNN CORRESPONDENT: Well, the urban legend, Carol, that they take advantage of employees, unfair labor practices, all of those good things we've heard so much about. The world's largest retailer is now fighting back against negative publicity by putting an open letter from its CEO, Lee Scott, in over 100 newspapers today.
Now, "USA Today" reports that Scott says he's going to offer the unfiltered truth because the company's critics were creating an urban legend. The world's largest retailer is also the largest private employer in the U.S. and the company's image has been hurt by lawsuits involving labor practice, as well as criticism about its impact on competitors. So look out for these ads in newspapers today.
That is the latest on Wal-Mart.
We'll keep an eye on that stock.
Apple Computer could be a nice mover today. Shares up about 12 percent after hours last night after seeing profits quadruple in the recent quarter thanks to the success of those iPods.
Futures across-the-board, though, looking flat to slightly lower. We'll get a look at weekly jobless claims and retail sales numbers coming out a little later today, Carol. That could give us some direction. A lot going on.
COSTELLO: You're not kidding.
Carrie Lee live from the NASDAQ market site.
Thank you.
It may be strike three for illegal substances in major league baseball. And the penalties for some players could be pretty tough.
Ray D'Alessio of CNN Sports has all the details for you coming up.
Also, Ali Velshi back with more on your credit history and you and why you need to know the score.
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WALTER UPDEGRAVE, SENIOR EDITOR, "MONEY": When you reach age 50, you want to make sure that you're taking advantage of the catch up provisions that were put into the law a couple of years ago for people 50 and older. So, for example, if you're contributing to a 401K, you probably are allowed to add another couple thousand dollars in the form of a catch up contribution. And also with an IRA or a Roth IRA, you're also allowed to put in these catch up contributions.
So essentially what this allows you to do is put a little more money away on a tax deferred basis and increase the value of your retirement accounts.
(END VIDEO CLIP)
COSTELLO: Is the crackdown finally coming? Major league baseball is expected to announce new rules concerning steroids today and players could be in for some harsh realities.
Ray D'Alessio joins me now live from Atlanta to explain these new rules.
Take it away -- Ray.
RAY D'ALESSIO, CNN CORRESPONDENT: Hey, good morning to you, Carol.
And, Carol, first off, I'm sure in a perfect world fans would have loved to see players banned for life for at least one positive test, but the bottom line, this new reported plan is a step in the right direction.
Now, comparing the two, under the old plan, the first time a player tested positive for steroids he was subject to only treatment in counseling. New plan, reportedly a first time offense could result in a possible 10 day suspension.
Old plan, a player wouldn't face a one year suspension until the fifth offense. New plan, a fourth offense could result in a one year suspension.
And as far as the randomness of testing, Carol, under the old system, players faced only tests during spring training, from the time that spring training started to the end of the last day of the season and that was only once a year. Now there could be random tests during and in the off season, as well.
COSTELLO: Really?
D'ALESSIO: So, again, a big step in the right direction. In a perfect world, again, fans, I'm sure they would like to see players banned for life for disrupting the so-called purity of baseball. But at least this is a step in the right direction.
COSTELLO: There's still so much to iron out, though, isn't there, as far as the players who are accused of using steroids from past years?
D'ALESSIO: Exactly. And will we ever know, again, the only player that has come right out and has admitted yes, I took steroids, I made a mistake, was the Yankees' Jason Giambi. He is coming back to play this year. He has already said he will show up for spring training. The big question is how is he going to perform in that national spotlight? I mean people are going to look at him, he's going to be booed in the stands, you know, he's going to get jeered. And whether or not he is able to, you know, maintain that level of consistent, you know, consistent competitive play throughout the year while he's under this scrutiny is yet to be seen. But, again, if you're a player who has not taken steroids, never even tried them, you like this new policy because, again, it takes, you know, some of the mystery out of the game.
COSTELLO: Yes. I was just amazed that the players and the owners managed to come up with any agreement at all.
D'ALESSIO: And, again, it's often been said that the players union is one of the strongest unions around. And, you know, I mentioned it to you the last half hour, the fact that they got this thing basically done within the last two months, that's very good. I mean that showed that there was a sense of urgency. It was their message to the fans that say hey, we're sorry. We realize we needed something to be done and we needed it to be done quickly.
COSTELLO: Well, you know the reason, the reason the fans were angry. And they knew they had to appease the fans. So I say hurray for the fans.
D'ALESSIO: Exactly.
COSTELLO: Yes.
D'ALESSIO: A victory.
COSTELLO: Thank you, Ray.
D'ALESSIO: OK, Carol.
COSTELLO: Still to come on DAYBREAK, he was a witness for the defense, but could the top officer in the unit undermine the soldier accused of abuse at Abu Ghraib?
And Prince Harry's wardrobe malfunction? Hmmm, royal criticism this morning for one poor choice of costume.
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COSTELLO: Good morning to you.
Welcome to DAYBREAK.
From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.
Now in the news, 10 people confirmed dead and all the missing are accounted for in La Conchita, California after the mud slide there. Searchers pulled the bodies of a mother and three daughters from the rubble yesterday. Three more bodies have not yet been found. A new indictment means a 36-year-old woman accused of killing a pregnant woman and taking the baby from the dying woman's womb could face the death penalty. Still, a federal prosecutor says a decision on that is months away.
British Finance Minister Gordon Brown says he'll try to raise $10 million for the worldwide fight against AIDS. Brown wants public and private money for a global fund to expand AIDS programs in poor nations.
And the delivery of aid to victims of the Asian tsunamis hits a roadblock. Indonesia's military says international aid workers must now be accompanied by soldiers because of the threat of rebel attacks.
To the forecast center now and Chad -- good morning.
MYERS: Good morning, Carol.
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