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American Morning

Royal Legacy: Princes William and Harry Speaking Out; Air Traffic Jam; At the Movies

Aired June 15, 2007 - 06:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

JOHN ROBERTS, CNN ANCHOR: Life after death. A late-night agreement to bring a controversial immigration bill back to the Senate floor.
(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: The silent majority wants a solution and that's what the senators are responding to.

(END VIDEO CLIP)

ROBERTS: The great bargain's great comeback, and the new fight to kill it all over again.

Plus, the princes go public.

(BEGIN VIDEO CLIP)

PRINCE HARRY: Personal memories that we have are very much part of it and that's the way I hoped it will always be.

(END VIDEO CLIP)

ROBERTS: William and Harry on their mother and her legacy.

(BEGIN VIDEO CLIP)

PRINCE WILLIAM: We (INAUDIBLE) no doubt at all that we were the most important thing in her life.

(END VIDEO CLIP)

ROBERTS: Heartfelt reflections nearly 10 years after the death of Diana on this AMERICAN MORNING.

And good morning to you. It is Friday, the 15th of June. I'm John Roberts. Good to have you with us.

KIRAN CHETRY, CNN ANCHOR: And I'm Kiran Chetry.

On our radar this morning, well, it's on everyone's radar I guess, it's NASA. All three International Space Station central and terminal computers have power this morning. As we know, it went out. It was intermittent as of yesterday. Now all still working properly, however, so they do still have some work to do with that. And the astronauts, meantime, are going to be heading out with their sewing kits, so to speak, to try to make a quick repair to that thermal blanket as they get ready to return to earth. So we're going to bring you up-to-date. We have the latest and we're also going to be speaking with some people from NASA coming up in just a couple of minutes.

ROBERTS: So a science teacher in Chicago turns on her video baby monitor. Guess what she sees?

CHETRY: Not her adorable little . . .

ROBERTS: Not what you're thinking either.

CHETRY: Infant cooing, no.

ROBERTS: No. She's getting signals from inside the space shuttle. Technology correspondent Jacki Schechner's going to be along a little later to explain how that happens.

CHETRY: Right. So she's been tracking all the work on the space station as well, unwittingly.

Also, a three-year-old from Georgia. This is an unbelievable story of survival. Her dad was going to run an errand. She wanted to make sure that she was there. She climbed on top of his pickup truck. He ended up driving for five miles going at times 45 miles an hour not even realizing she was on the car. She, of course, fell off and we're going to find out more about how she's doing and let's hear quickly what her dad said.

(BEGIN VIDEO CLIP)

CAREY WHITLOW, FATHER: You think, what ifs. And people say, don't think about that. But we do.

(END VIDEO CLIP)

CHETRY: There she is. A brave little one. Hung on for five miles until another passing motorist saw her fall off.

She's doing OK, as you can see. She's a little . . .

ROBERTS: Scraped up.

CHETRY: Scraped up. Cuts and bruises. But her mom said she's sitting in the hospital bed eating strawberry shortcake, so she can't be too bad along.

ROBERTS: Apparently after she bounced and got her legs back under her, she started chasing after dad in the truck.

CHETRY: Intrepid little three-year-old.

ROBERTS: Oh, can you imagine.

We begin this morning, though, in the Mid East and Hamas tightening its grip over Gaza. Right now, Friday prayers are keeping the gunfire to a minimum, but reminders of the violence are everywhere. Moments ago, the coroner in Gaza told reporters that the morgue is overflowing with bodies. Many of them, Fatah loyalists who were dragged in the street and shot execution-style in the past 24- hours. The concern this morning, will Hamas try to extend its reach into the West Bank? CNN's Atika Shubert is in Jerusalem for us this morning.

Atika, the Arab league is meeting in emergency session today to try to figure this out. When we look at Mahmoud Abbas and Hamas leaders, what's the strategy on both sides today and then what's Israel doing as well?

ATIKA SHUBERT, CNN CORRESPONDENT: Well, really, both Hamas and Fatah are trying to figure out what to do next. Hamas clearly is in control of Fatah. Fatah is in control of the West Bank. And the West Bank is very much a Fatah stronghold. It seems unlikely that Hamas forces would be able to make any headway there.

However, it seems to be a bit of a stalemate now. Both Presidents Abbas in the West Bank and former Prime Minister Ismail Haniyeh, in Gaza, claimed to be the true Palestinian authority. Neither is giving in. And no one is sure what happens next.

In the meantime, Israel is looming over this, trying to figure out what to do. The Israeli government says it doesn't want to become involved. It won't intervene unless attacked. But there is also, of course, the problem of a looming humanitarian crisis. What to do will a million and a half people in the Gaza Strip who are, at the moment, cut off from supplies.

ROBERTS: Yes. We're also wondering at this moment what the U.S. strategy is as well, Atika. We're going to be talking with Richard Haas (ph) in just a little while. He's former deputy secretary of state in the Bush administration. Also the president of the Council on Foreign Relations, about all of this.

And, Atika, we'll get back to you this morning as things develop there, continue to develop in both Gaza, the West Bank and in Israel.

Atika Shubert for us this morning from Jerusalem.

CHETRY: And this may be a sign of sometimes how brutal things can get over there. A TV anchor in Lebanon is out of a job this morning for laughing at an assassination. She apparently didn't know that her microphone was on when she joked about a member of parliament who had been killed. Take a listen to what went over the air.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Hello, Hajj. My condolences.

UNIDENTIFIED MALE: Thank you. My condolences.

UNIDENTIFIED FEMALE: So why did it take them so long to kill him?

(LAUGHTER)

UNIDENTIFIED MALE: We don't glee over people's misfortunes.

UNIDENTIFIED FEMALE: It's not glee, but we've had enough of them.

(END VIDEO CLIP)

CHETRY: Well, there's what she said, why did it take so long to kill him? She was talking about the anti-Syrian member of parliament who was killed. After some laughter, she also says Fatfad (ph) should be next, referred to another anti-Syrian member of parliament. You can also hear another anchor chastising her, saying we shouldn't get glee out of this type of thing. The station happens to be owned by a pro-Syrian speaker of parliament. The uproar actually happened after this clip started making the rounds on YouTube.

ROBERTS: Yes. And we've seen that before, haven't we?

We're waiting for details this morning on a new immigration deal in the Senate. It looked like the bill was dead, but now it appears live enough to return to the Senate floor as early as next week. Negotiators agreed to limit the number of amendments to 11 on each side, whittled down from hundreds, and we're waiting to see what those amendments are all about. And, of course, everyone is wondering if there are enough votes to pass the measure. Dana Bash is following all of the latest moves from Capitol Hill this morning.

(BEGIN VIDEOTAPE)

DANA BASH, CNN CORRESPONDENT: One week ago we watched as immigration reform appeared to die on the Senate floor and now, as soon as next week, it's coming back to life. This dramatic turnaround came after intense negotiations behind closed doors tried to revive the bill.

Last week this bill essentially collapsed because opponents said that they weren't going to have enough opportunities to change things they don't like in this immigration compromise. So what negotiators agreed on are a limited number of amendments, about 20, to give opponents opportunities to address their concerns. Opponents both on the Republican and Democratic sides of the aisle.

Now just because this breakthrough has come forward, it does not mean immigration is actually going to pass the Senate because there are so many opponents to this who are determined to kill the bill and they will have a lot of opportunities to try.

Dana Bash, CNN, Capitol Hill.

(END VIDEOTAPE)

ROBERTS: And in about 10 minutes time, Mark Halperin, the senior political analyst for "Time" magazine will be here to talk about this latest deal and what's going to happen, coming up next.

Kiran.

CHETRY: Well, Governor Arnold Schwarzenegger telling immigrants, put down your Spanish newspapers this morning. Speaking to Hispanic journalists, Schwarzenegger said that the best way for immigrants to learn English is to use it a lot, to avoid Spanish TV, books and newspapers. Schwarzenegger was answering a questions about how Hispanic students could improve academically.

ROBERTS: The Justice Department has announced an expanded investigation. It's going to look into a conversation between Attorney General Alberto Gonzales and his former aide, Monica Goodling, asking if Gonzales used undue influence on Goodling, or at least attempted to do so. And it goes back to her testimony that he met with her to recount her version of events in the prosecutor firings and then asked for her reaction. Goodling testified in Congress that that conversation made her feel uncomfortable.

CHETRY: Well, this morning, flight controllers have just powered down the computers on-board the International Space Station. Those computers crashed. Now they're trying to reboot them. Parts of the shuttle have powered down to conserve energy in case it needs more time to be docked at the station. These are live pictures coming to us, by the way, right now. Atlantis astronauts will be conducting a space walk today. They're going to be repairing the shuttle's thermal blanket that came loose during liftoff. So a lot on the plate this morning from up in space. AMERICAN MORNING's Alina Cho joins us now with more on both of those things for us.

They've got computer trouble and they're going to using a sewing kit to try to fix this thermal blanket that came lose.

ALINA CHO, CNN CORRESPONDENT: They're actually going to use a surgical stapler, Kiran. It's unbelievable, really.

But basically, as you mentioned, there are two problems, that computer glitch, which they've been trying to fix since yesterday, and the terminal blanket, which actually is what protects the shuttle from the blazing heat during re-entry.

Now first to the computer problem. Parts of the shuttle have actually been powered down to conserve energy in case it needs to spend more time docked at the space station. Now engineers are focusing on a bad power feed on the Russian side of the space station that was causing power failures in the computers that control the station's orientation and they also produce oxygen. These are really command and control computers, so you can imagine how people are really concerned about this.

And that power feed, we should mention, was delivered to the space station by the shuttle Atlantis and connected during a space walk earlier this week. Now later today, flight controllers plan to disconnect the power feed between the U.S. and Russian sections of the space station. They're going to reboot the computers and they're hoping that will fix the problem.

Now we should mention that this is the first time the space station has had this type of massive computer failure. But NASA is not worried about this. They say abandoning the space station is not a likely scenario.

Now to that other problem. Later today astronauts will conduct a space walk to staple down that thermal blanket that pealed back during Friday's launch of the space shuttle Atlantis. That thermal blanket, as I mentioned, protects the shuttle during re-entry. And you'll recall, it was re-entry problems that caused the break-up of the shuttle Columbia back in 2003 killing seven astronauts.

Now the shuttle mission is now in its seventh day. It's actually been extended from 11 to 13 days just to fix that thermal blanket. And, Kiran, it could be extended a big longer because of the computer problems. But they don't believe it will be catastrophic. What's interesting about the thermal blanket situation is that usually astronauts -- and I didn't know this -- it takes months to plan for a space walk. But they had to plan this one in just a day.

CHETRY: Right, they did it on the fly.

CHO: That's right.

CHETRY: And I believe they did it with one of the past missions where they had -- actually had to pull a chunk of that styrofoam out using another everyday item. I think a pliers.

CHO: That's right. They don't think this will be catastrophic. They just want to fix the problem so that they don't have more problems when the shuttle gets back on the ground.

CHETRY: All right. Alina, thanks.

CHO: My pleasure.

ROBERTS: Nine minutes after the hour now.

We told you about this back up at the top on our radar. A little more on it now. A three-year-old girl in Georgia is lucky to be alive. Christa Whitlow survived a wild five-mile ride yesterday clinging to the top of her father's pickup truck. Miraculously, she owned skinned her face, arms and legs. A little bandaged up there and a little soar. The girl had climbed up on top of the camper that was on the back of the pick-up truck. And her father, unaware, headed on down the road at 45-miles-an-hour. She eventually fell off but then got up and chased after the truck. Her father says Christa felt guilty about what happened.

(BEGIN VIDEO CLIP)

CAREY WHITLOW, CHRISTA'S FATHER: She smiled. And I bent down to kiss her and she licks my face and, like, sorry, dad. And she thought she was in trouble. All she wanted to know is if she was still a good girl or not.

(END VIDEO CLIP)

ROBERTS: And all he wanted to know is if she was OK.

CHETRY: She's so adorable. Look at her.

ROBERTS: Oh my goodness. Doctors expect that Christa is going to go home from the hospital today. Christa's father is going to join us live at 7:30 this morning to talk more about all of this.

CHETRY: So adorable. A typical three-year-old. She had an entire plate of hospital food. You could see the green beans and everything else, but she was going right for the strawberry shortcake. So she feels well enough to still have her sweets. Adorable little girl.

Well, FEMA's trying to get its money back. It tops our "Quick Hits" now. "USA Today" this morning reporting that FEMA paid $485 million too much in claims after Hurricanes Katrina, Rita and Wilma and now they're trying to get some of that back. But many of the people who got the money say, we spent it.

The U.S. is going ahead with a missile shield in central Europe despite Russia's offer. Defense Secretary Gates is delivering the news to his Russian counterpart today. The Russian's offered a radar in Azerbaijan, but Gates says it can't replace the system that the U.S. is planning to build.

A week ago it was left for dead. Today, the senators are breathing new life into the president's stalled immigration bill. We're going to get details of the bill straight ahead on AMERICAN MORNING. Will it pass this time? We're going to find out when we come back. The most news in the morning is here on CNN.

(COMMERCIAL BREAK)

ROBERTS: Fourteen minutes after the hour. A blocked energy bill tops our "Quick Hits" now. Democrats want power companies to use more renewable sources like wind and solar energy. So far, though, Republicans are not going along with it. They say that that will raise the price of electricity.

The search is on for a suspected arsonist in Seattle. Firefighters say at least three fires were deliberately set last night. A fourth one is under investigation. Police say one of the fires caused $10,000 in damage to a church. It was torched while meetings were going on inside. No one was hurt.

And what do you always want in the middle of a drought? A drink, right? Well, drought conditions in Tennessee are threatening to leave Jack Daniels drinkers dry. The cave spring at the Lynchburg, Tennessee, distillery is running dangerously low and putting the century old whisky business in jeopardy.

Oh, my goodness. Reynolds Wolf here today with a look at the weather forecast.

That spring usually runs 800 gallons a minute. Now they didn't say what it's down to now, but apparently its . . . (WEATHER REPORT)

ROBERTS: Time to serve you up a plate of Friday politics now.

Kiran.

CHETRY: Did you say fried egg politics? I'm starving.

ROBERTS: Ah, Freudian slip.

CHETRY: Well, Senate leaders reached a deal last night to revive the controversial immigration reform bill, bring it back to the floor as early as next week. So that tops our list of what's on the political radar today. Mark Halperin, senior political analyst for "Time" magazine joins us now to discuss it.

Thanks for being here, Mark.

MARK HALPERIN, SENOR POLITICAL ANALYST, "TIME": Sure.

CHETRY: You know, last week all we kept hearing was lame duck and all but dead, lame duck and all but dead and now it looks like there's some new life into this immigration bill. Were we not giving the president enough credit?

HALPERIN: Well, there's a little life in it, but it's still an up-hill struggle. This is a complicated process. This is a step forward for the president. It's a win for the president, but it doesn't get the nation to a comprehensive immigration reform yet. There's about 17 steps to go. I'd say this was step one-half.

CHETRY: Did he make any progress at that lunch?

HALPERIN: Well, what the president did was got a hearing for Republicans to say, can we go to the next step? We go back to our "School House Rock." They've got to get through the Senate. Then the House looms. The House is going to be tougher than the Senate. But they're focused on step one, which is getting it through.

The president now has said, look, if we put a lot of money into enforcement, which is what most vocal critics are complaining about, if we do that, can we move forward? What they've got is procedurally in the Senate now a deal. Bring it back to the floor. Don't have it talked to death by a filibuster or by unlimited amendments. It's an agreement to go forward, but not to get it done.

CHETRY: So what they're agreeing to, at least in part, and when you mention the money, an agreement for an additional $4.4 billion in funding to secure the border and to enforce the workplace laws. This is something that many of the conservative Republicans that were against it really felt was important.

But back to the issue of the amendments. Aren't they trying to limit -- actually I guess you can talk about it -- about each of them gets a limit. You can do 10 different amendments to talk about . . .

HALPERIN: That's right, a handful of amendments on both sides.

CHETRY: For Democrats and GOP, and then you've got to move on?

HALPERIN: To try to move it forward. That procedural agreement is important in the Senate. Look, the anger. The reason that this bill is dividing the Republican Party is the anger on talk radio, the anger from the activists is shut down the border, control the border, we don't want any talk of giving a path to citizenship, which is important to the president. Somehow he's got to figure out, with Senate leaders of both parties, how can they get a bill out?

CHETRY: Let's talk about the campaign trail real quick. This is interesting from politico.com, that John McCain's campaign has actually bought the web address www.mittversesfact.com. Evidence, more evidence, of just how nasty this campaign may get?

HALPERIN: Well, look, this is still the preseason, to use a sports metaphor, which I know you love. The real campaign begins in September. Right now they're jockeying for position. Four strong Republican candidates with Fred Thompson, if the former Tennessee senator enters. Every candidate has to decide who to go after. It's a complicated four dimensional chess problem. The McCain people, right now, for whatever reason, think going after Mitt Romney with this cute website is right for them. But you're going to see a lot of preseason skirmishing. Can you name any teams record ever in preseason? No, you don't.

CHETRY: Because you don't worry about it yet.

HALPERIN: It just doesn't matter. So right now they're getting ready, they're practicing, and they're trying to see what weaknesses there are in the opposition. But come September, you'll see commercials. You'll see much more engagement than you'll see over the summer.

CHETRY: Mark Halperin, senior political analyst with "Time" magazine.

Great to see you. Thanks for being with us.

HALPERIN: Thanks.

CHETRY: John.

ROBERTS: Twenty minutes after the hour. Sex offenders busted on MySpace tops our "Quick Hits" now. Seven men have been arrested in Texas. They are the first known arrests since MySpace agreed to release information on sex offenders using the site. The men were either on probation or parole and under Texas law were not allowed to use the Internet.

And it's not probation but prison for Lewis Scooter Libby. A judge denied a request to postpone his sentence while he appeals his conviction in the CIA leak case. The former top aide to Vice President Dick Cheney says he will appeal that ruling as well. And if that fails, he could be forced to start serving his two-and-a-half year sentence in the next two months.

Well, she turned on her baby monitor and picked up a signal from outer space. Who did she made contact with? Jacki Schechner will be here to show us how it happened, next on AMERICAN MORNING.

(COMMERCIAL BREAK)

ROBERTS: A tuberculosis case in Texas tops our "Quick Hits." Lamon Yamen (ph) is in protective custody in San Antonio this morning. Health officials say that he stopped accepting treatment back in April, so they started looking for him. He doesn't have the drug resistant form of TB, though.

And doctors plan to operate on Andrew Speaker, the patient who does have drug resistant TB. Speaker will have surgery next month to remove some infected tissue from one of his lungs.

CHETRY: All right. Well, a baby monitor swipes a feed from NASA. At least it would appear that way. It happened to a mom in Chicago. And instead of getting the pictures of her baby boy, she actually tuned in and got shots from space. CNN's Jacki Schechner is here to show us how this may have happened.

Now we've heard about the audio glitches. Let's say you're trying to hear your baby and you accidentally hear your neighbors, but this takes the cake.

JACKI SCHECHNER, CNN CORRESPONDENT: Well, I didn't even know there were video baby monitors out there.

CHETRY: I know, mine was audio only.

SCHECHNER: You should know these things. But basically there are video baby monitors. And what happened is, this woman, Natalie Mylinger (ph) in Chicago, picked up what you see on NASA TV on her baby monitor. It has two channels. One of them is actually picking up the video.

Now we spoke to NASA and they said the got a good chuckle out of it but it's not actually coming from the space shuttle. If you think about the way that they do their video, it actually is encrypted, sent down to White Sands and then unscrambled there and that's how it gets to NASA TV on your television or your computer. So that would be one heck of a baby monitor.

CHETRY: So this is the baby monitor or one like it where she was able to see this picture?

SCHECHNER: One like it. Actually, the one she had is an older version and a larger version, but it has two channels and one of them just started to pick up the NASA feed.

Now they don't know what happened. They can't figure it out. It's a big mystery at this point. They thought, perhaps, it was picking it up from a wireless router. From somebody's computer or somebody's television and was actually beaming to her monitor. But it turns out those frequencies are different. So the monitoring company is sending her a second monitor. They want to see if it's something in her house. Perhaps the wiring. They can figure out what's going on. She won't give up the first one. She says she has seen the space walks, the moon maps, mission control. It is her favorite thing and she will not give back the old monitor. So she's going to have two of them.

CHETRY: That's hilarious.

SCHECHNER: Yes.

CHETRY: So she's possibly seeing more than you would see on these NASA websites or these linked up websites?

SCHECHNER: Well, she's seeing the same thing, but she's seeing it all day long. So she's got her baby in one room and . . .

CHETRY: And NASA in the other.

SCHECHNER: Astronauts in space in the other.

CHETRY: That's pretty wild.

SCHECHNER: Isn't that's cool. Yes.

CHETRY: Yes, Jacki, thank you.

SCHECHNER: Sure.

ROBERTS: The things you pick up on a baby monitor.

It's 27 minutes after the hour now. Ali Velshi here "Minding Your Business."

The production of ethanol is just driving the cost of everything up, isn't it?

ALI VELSHI, CNN CORRESPONDENT: Yes. It really is a big deal. And what ethanol in this country is largely made from corn. And what's happening is the demand for that has meant that land that would otherwise be planted with other crops, including wheat, are being replanted with corn because it's worth more to farmers to do that. Right now, about 27 percent of our plantable land is being planted with corn and the government says in five years it will be 33 percent.

So the issue here is that it's costing more for corn, frankly. It's costing more for animal feed because animal feed is made from corn. It's costing more for corn syrup because we use high fructose corn syrup to sweeten most of our drinks and things like that. It's costing more for milk, for eggs, for pork, for chicken. All sorts of things end up costing more.

Milk prices could be up more than 10 percent by the end of this year. Cereal prices. We've already seen the major food manufacturers increase cereal prices. If you go to some of these steak houses, the price of a steak has actually gone up. And if you get a side of corn with that, you're in big trouble.

So it's actually a big deal, because when you look at all the food that we buy and the fact that it's all increasing, plus the fact that fuel prices are increasing, so the cost of manufacturing, processing and shipping that food, that all comes together and creates an inflation problem. We're going to get inflation numbers for the month at about 8:30 Eastern today, two hours from now, but this is a concern that food prices are going up across the board.

ROBERTS: OK. We'll talk to you in just a little while.

For the first time since Princes Diana's death, her sons are speaking out about her on camera. Prince William sets the record straight. Take a listen.

(BEGIN VIDEO CLIP)

PRINCE WILLIAM: After 10 years, there's been sort of a rumbling of some people bringing up the bad and over time people seem to forget or have forgotten just about all the amazing things she did.

(END VIDEO CLIP)

ROBERTS: We're going to have much more from this BBC interview in about five minutes time. Stay with us.

You're watching AMERICAN MORNING. The most news in the morning is on CNN.

(COMMERCIAL BREAK)

CHETRY: There is a beautiful shot from our tower camera courtesy of WTAE in Pittsburgh, PA., this morning. Fifty-four degrees right now, partly cloudy. Going up, though, to 80 degrees today. And not far away is where the U.S. Open is going to be taking place today, Oakmont.

ROBERTS: Yes. Is Phil Mickelson going to have any success this year, or is he going to -- again?

CHETRY: I think that meant choke.

Welcome back. It is Friday, June 15th.

I'm Kiran Chettry.

ROBERTS: Good morning to you. I'm John Roberts.

(NEWSBREAK)

CHETRY: Well, for the first time since Princess Diana died, Britain's royals, the princes, are speaking publicly about the loss of their mother. The heir and his brother sat down with a BBC reporter ahead of the July 1st concert marking the 10th anniversary of Diana's death.

CNN's Adrian Finighan is live in front of Buckingham Palace for us with more.

And it's very rare that we hear the princes sit down and actually give these types of interviews.

ADRIAN FINIGHAN, CNN CORRESPONDENT: It is, indeed, Kiran.

Good morning to you. You joined us at an excellent moment here at Buckingham Palace. They're changing the guard over there. A lot of men in bearskin hats and red tunics marching up and down in front of the crowds, in front of the railings in front of Buckingham Palace.

Now, the whole point of the princes giving this interview was as a prelude to that concert that they've organized for their mother. They said they wanted to counter criticism of Princess Diana and to help people remember what a wonderful person she really was.

Here is what they had to say.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: Why do you think she is so inspiring to you?

PRINCE WILLIAM: Because she did everything because she felt it was right and what she wanted to do. She didn't go by what she thought was the best thing to do or be told to do something. She did it from her heart, and fully immersed herself in it.

And she cared. She cared massively. You know, we've been left with no doubt at all that we were the most important thing in her life. And then after that, it was everyone else. It was all her charities and everything else.

And to me, that's a really good, you know, philosophy, that she -- she just -- she loved caring for people and she loved helping.

UNIDENTIFIED FEMALE: How do you think you would like her to be remembered by the public?

PRINCE HARRY: As sort of a happy, fun, bubbly person who cared for so many people. She put everybody first, and then herself very much last.

And, you know, she was -- she was the most caring person, you know. I mean, she was our mother, so we'd say that, as I'm sure everybody else would say that about their mother. Really caring, so sweet, and very much missed by not only us, but I think a lot of people.

(END VIDEO CLIP)

FINIGHAN: Now, that concert in a couple of weeks' time on July 1st, which would have been the princess of Wales' 46th birthday, is going to be raising money for organizations that she was supporting at the time of her death. It's going to be an amazing day.

Let me read you some of the artists, a list of some of the artists that will be performing there.

We've got Rod Stewart, Elton John, Kanye West, Duran Duran, Bryan Ferry, Joss Stone, Fara Williams (ph), Lily Allen, Nelly Furtado, P. Diddy, Natasha Bedingfield, and if rock and pop is not your thing, Andrew Lloyd Webber will be there with an orchestra, as will the English National Ballet.

Kiran, it's going to be a fantastic concert and CNN is going to be there.

Back to you.

CHETRY: Oh, can't wait. Absolutely.

Adrian Finighan, thank you so much.

ROBERTS: Some "Quick Hits" for you now.

(NEWSBREAK)

(COMMERCIAL BREAK)

ROBERTS: Forty-one minutes after the hour now.

Flight delays hit an all-time high this year. More than one out of every four flights is at least 15 minutes late. And things could be getting worse.

Consumer Reporter Greg Hunter has been looking into what's being done to prevent a traffic jam in the sky, and he's doing it from the driver's seat this morning, live in Whippany, New Jersey.

Good morning to you, Greg.

GREG HUNTER, CNN CONSUMER REPORTER: Hey, John.

I'm at CAE, and these folks specialize in pilot stimulation. Take a look at this simulator.

Now, the outside looks like some crazy machine, but inside that looks just like a 900EX airplane. And you can see it's going up, it's down, it's turning, it's banking. The folks here at CAE say good pilot training is critical with our crowded skies.

(BEGIN VIDEOTAPE)

HUNTER (voice over): For many air travelers during the past few weeks, flying has been extremely frustrating.

UNIDENTIFIED FEMALE: Nobody's doing anything. Nobody knows anything. It's a chaos.

HUNTER: From lines on the runways, to lines in terminals, everything from computer glitches to bad weather have caused thousands of delays and cancellations. The FAA says the system is maxed out. Worse still, the system is going to get crammed even tighter over the next five years.

UNIDENTIFIED MALE: They forecast 12,000, 13,000 airplanes in the next five years to add to the fleet of airplanes that already exist.

HUNTER: CAE, a business pilot training center, has what they call state-of-the-art flight simulation technology to train corporate pilots.

(on camera): A well-trained pilot in a crowded is going to be key.

UNIDENTIFIED MALE: Absolutely. It's going to be essential. It's more than key.

HUNTER (voice over): Half the new planes are expected to be private. The other half commercial, including smaller, regional jets. And in the case of crowded skies, size does not matter.

JAMES MAY, AIR TRANSPORT ASSOCIATION: A blip is a blip is a blip. It doesn't make any difference whether it's the CEO of Fortune 100 company or if it's a 737 flying from Newark to Atlanta. They're using the same air space.

HUNTER: To handle all that traffic, the FAA wants to update its antiquated air control system that uses 1950s technology.

MARION BLAKEY, ADMINISTRATOR, FAA: We think we can handle them if we move to a new satellite-based system and move there pretty quickly. Because that will give us the automation and it will give us the ability to handle a lot more traffic.

(END VIDEOTAPE)

HUNTER: But until we get that satellite-based system, the pilots are going to be a real critical component, as they always are.

Take a look at the training going on in this simulator. They're a steep, steep climb. Now they're dropping down. You ought to feel like that feels like inside.

Or better yet, would you like to go flying? Would you like to fly something like this, something that will do 600 miles an hour, a state-of-the-art airplane, a 7X Falcon? Huh? It's about a $44,000 plane.

Come on. Let's fly. Come right on in here.

Hey, Steve.

Steve is our photojournalist right here.

And this is Tony.

Hey, Tony.

Tony has got about 6,000 hours of flying. Let me get in here.

Tony, we are flying around New York City, so we're flying nice and flat and level. Let's take a little bank here with this airplane.

UNIDENTIFIED MALE: Do you want to go to the left?

HUNTER: Would you like to take a look at New York City? This thing really looks real. And this is really important for pilots to get the training.

I was talking to the president of the company, and I said, "Well, I guess you simulate it. It kind of feels like it's kind of real." And he says, "Oh, no, no. It doesn't feel like it's kind of real. It feels exactly like the real thing, exactly like flying this plane."

And that, of course, is critical.

Take a big, hard bank here. Let's show everybody what it looks like.

This town, New York City, this is exactly what it looks like to a pilot. Can you believe this? There's a thunderstorm going on out there in the distance. There's planes flying around.

So it is -- it really is great simulation. It feels like the real thing. You guys should feel this.

Back to you guys in the studio.

ROBERTS: Very cool. Thank you, Greg.

Do me a favor, though. If you're going to fly, make sure you only pilot a plane in the simulator.

I also think Greg meant $44 million for the aircraft. If it was $44,000, we'd all have one, wouldn't we?

To avoid delays, you can head to a Web site that air traffic controllers use. Boy, they're the ones who know about it, and here it is -- www.avoiddelays.com.

You'll find advice from controllers about specific airports. Like, Denver, they say avoid an afternoon flight there because those afternoon Rocky Mountain thunderstorms could slow you down.

Or in Indianapolis, stay away from the last flights of the night because those are often delayed by inbound FedEx flights since Indianapolis is the package shipper's second largest hub.

Again, www.avoiddelays.com -- from the people who know.

CHETRY: Yes, pretty cool.

(NEWSBREAK)

(COMMERCIAL BREAK)

(NEWSBREAK)

CHETRY: Well, there's a little something for everyone at the weekend box office. Take a look.

Why did I say take a look? Did we really want to see that this morning so early?

Well, for adults, there's "Eagle Vs. Shark". It's the romantic comedy about oddballs who meet at a costume party, and clearly they do some kissing. Well, some are calling it the next "Napoleon Dynamite".

There's also a few superheroes and a super sleuth. "Nancy Drew" coming to the big screen.

And AMERICAN MORNING'S Lola Ogunnaike joins us to give us the rundown.

Now, we all loved the anti-heroes of "Napoleon Dynamite". So, "Eagle Vs. Shark" is a similar vein?

LOLA OGUNNAIKE, CNN CORRESPONDENT: It's that, you know, corny but lovable duo.

"Eagle Vs. Shark," Eagle is the guy, Shark is the girl. Is it going to work out? Romantic comedy. Hijinx ensue. We watch them.

It's out in New Zealand. And the guy who actually stars in this is going to be in an HBO series, as well. So we might see a lot of him. The series starts on this Sunday.

But -- and then up next, we have "Nancy Drew," starring Emma Roberts, niece of Julia Roberts. And "Nancy Drew," it's an update of the series, but it is not based on an adaptation at all. It's an original. And we'll be checking her out and see her solve the long mystery of a Hollywood icon who's dead.

CHETRY: Still remember loving those books.

OGUNNAIKE: I love them.

CHETRY: Could not wait to tear into a new one.

OGUNNAIKE: I read them so often.

But the favorite this weekend is "Fantastic Four". That's all anyone is talking about.

I went to a screening last evening -- "Fantastic Four: Rise of the Silver Surfer". And when the Silver Surfer hit the screen -- I don't know if you knew about him. I didn't know about him. So really quickly, Silver Surfer is this guy who explores these galaxies looking for planets that his boss can devour.

CHETRY: Ooh. OGUNNAIKE: Really cool...

CHETRY: It scared you when he hit the screen?

OGUNNAIKE: The crowd went wild when the Silver Surfer hit the screen. They're screaming. Their story scenes are like -- they're intense.

But, you know, the film, the original grossed $56 million in its first week, $300 million worldwide. I'm not sure if it will do that well this weekend, only because there's so much competition. This is the summer of sequels, remember.

CHETRY: Right.

OGUNNAIKE: They've got "Pirates". You've got "Spider". And you've got "Knocked Up," which is an original that is still continuing to do very well.

CHETRY: The good news is this one is PG, so maybe more kids will be able to go and like it.

OGUNNAIKE: Yes. And even better news, it's only 89 minutes, so it's quick, in and out. And it's a fun romp.

The lines are really cheesy, though. I'm warning you. And there are a lot of really weird dead pan moments and stares like, "What are you doing here? I don't know." So watch out.

CHETRY: The comic book lines like...

OGUNNAIKE: Exactly.

CHETRY: ... that don't always translate to screen.

OGUNNAIKE: No, they don't. But Jessica Alba always translates to screen.

CHETRY: She does.

OGUNNAIKE: She looked really good.

CHETRY: Lola, thanks so much.

OGUNNAIKE: Thank you.

ROBERTS: Hey, mortgage rates spikes sending shock waves through the housing market. Is the stock market next?

What it all means for buyers and investors. Your business news straight ahead.

You're watching AMERICAN MORNING. The most news in the morning is on CNN.

(COMMERCIAL BREAK) ROBERTS: Fifty-seven minutes after the hour.

A sunken treasure rises to the top of our "Quick Hits".

(NEWSBREAK)

CHETRY: You know, it's funny. It's two minutes before the top of the hour and we're sitting here going, wow, Oprah Winfrey made $260 million. This is a drop in the bucket for the Ali Velshis of the world who cover the hedge fund bosses, right?

ALI VELSHI, CNN CORRESPONDENT: Yes.

CHETRY: I mean, for them...

VELSHI: And all my money is in a blind trust. So I don't know where it's going.

You know, we talk about the housing market a lot. There are sort of three things that affect the housing market. One is mortgage rates, the other one is house prices. And the third one, of course, is how much people earn. Obviously, as people earn more or less, they buy or sell houses.

Well, the mortgage rates, which have been steady for a while, the fixed mortgage rates, we've been talking about this all week. They are going up. They are up again.

We have now seen the biggest spike in four years in the fixed mortgage. A 30-year fixed -- a 30-year fixed mortgage is now going to cost you 6.74 percent on average; 15-year fixed, 6.43 percent; and a one-year ARM, 5.75 percent.

Remember these ARMs, these adjustable rate mortgages, are what got people into trouble in the first place. So people have been considering the idea of switching from these ARMs to these fixed mortgages. But when you started thinking about this a while ago, mortgage rates were a lot lower.

We are now the highest we've been in over a year, and there are some estimates that we're going to see mortgage rates, fixed mortgage rates for a 30-year mortgage, heading to 7 percent by the end of the year. And when we talk about a recovery in the housing market, that's one part of the equation. As mortgage rates go up, on a $300,000 loan, just this increase we've seen in the last month or so, it equates to, you know, almost $200 a month in extra payments.

So, you know, these things add up.

CHETRY: It makes a big difference.

VELSHI: Yes. That's some money that you're not spending somewhere else.

CHETRY: Ali, thank you.

VELSHI: OK.

CHETRY: The next hour of AMERICAN MORNING starts right now.

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