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Forced Spending Cuts; Hot Air Balloon Crashes

Aired February 26, 2013 - 15:00   ET

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

(BEGIN VIDEOTAPE)

BROOKE BALDWIN, CNN ANCHOR (voice-over): Tragedy on vacation. A hot air balloon full of tourists crashes to earth, but why?

Plus, scientists just discovering a fast-moving comet. But it is not Earth in its crosshairs. It's Mars.

And more than 30 years ago, The Who canceled a concert. But, tonight, they're doing something extra special for the fans who kept their tickets all these years.

(END VIDEOTAPE)

BALDWIN: Hi, everyone. Welcome back in studio seven. I'm Brooke Baldwin.

It is the world's deadliest hot air balloon crash in two decades. Just two people survived when this balloon filled with tourists exploded in the skies high above Egypt. Look at these pictures. This is what is left; 19 people were killed when it came careening to the ground. They were tourists. They were from France and Belgium, Britain, Hong Kong, Japan.

They were simply taking in the sights of the ancient city of Luxor when the explosion happened 1,000 feet above the earth. That's just shy of the height of the Empire State Building.

Ian Lee is live for me in Cairo.

Ian, we are hearing there are two people who survived, may have actually jumped before this balloon crashed towards earth. Can you just take me through what exactly happened?

IAN LEE, CNN INTERNATIONAL CORRESPONDENT: That's right, Brooke.

Right as plane -- or -- sorry -- the balloon was coming down, it was about 10 feet off the ground when things started to go awry. The pilot of the hot air balloon and one of the passengers jumped out. The balloon then caught on fire, sending it straight up into the sky, 1,000 feet, up into the air, before it finally stopped and then came plummeting down to the ground.

The two people are in the hospital right now. But the head of the civil aviation authority is in Luxor. He's investigating what took place. They said that the hot air balloon was operating legally and that it had fulfilled all the requirements to operate, although the chamber of tourism says that the company that operates the balloon has had some infractions and they are going to be looking into that right now.

But Egypt has had a history of hot air balloon accidents. Four years ago over the span of a couple of months, 80 people were injured in hot air balloon accidents in Luxor. The government shut down the hot air balloon industry for six months to investigate. They said they implemented reforms that should have worked. They didn't work this time. Right now all the hot air balloons in Luxor are grounded.

BALDWIN: Tragic. Ian Lee, thank you.

And another snowy blow to the nation's midsection here. Folks, it is late February. We're talking blizzard. Check it out. Kansas City, Missouri, going nowhere fast for the second time in less than a week. Poor guy trying to change his tire here. Want you to look at this now. But look closely. These is a snowdrift in Texas close to three feet deep.

We have Ted Rowlands live for us right now at Chicago's O'Hare International Airport.

Ted, stand by for me, because I first want to go to Erin McPike. She's in Kansas city.

Erin, how are things looking out there?

ERIN MCPIKE, CNN CORRESPONDENT: Actually, Brooke, the storm has stopped and the roads are actually clear.

And I want to show you this. We're actually at the time where we can see lovely sludge. Yuck.

BALDWIN: Oh, lovely.

MCPIKE: So that means it is time for the cleanup to start and Kansas City Mayor Sly James estimated that the last week's snowstorm cost the city about $2 million. They think that this week's snowstorm will cost just a little bit more because it is heavier snow, and that means more trees have come down.

But, by and large, Brooke, people we have talked to here are actually very happy about this snowstorm because this is really dry, this area here. It is the third consecutive year of a drought. And this snowstorm has brought much needed moisture, Brooke.

BALDWIN: OK, so we have some sludge and moisture in Kansas City. Thank you, Erin.

Ted Rowlands, let's go to you in Chicago. Never fun, cancellations, flights at O'Hare. Tell me, give it to me straight, what is the current situation?

TED ROWLANDS, CNN CORRESPONDENT: Well, 230 flights, that's straight up, Brooke, as straight as I can give you. The reason, of course, is the snow.

You can see it is blowing snow. It has been falling for about two hours here. So you have got 230 flights already canceled here at O'Hare, most of them proactively because of the weather, another 50 flights at Midway. Those folks on those planes didn't show up. Take a look at the security line. There is nobody here. So, actually for the flights that are going out, the passengers are not feeling the pain of the lines, and the terminal here in at American is virtually empty.

And if you look at the board, there are a lot of flights still going out. Chicago of course is a city that is very familiar with snow and deicing and they are getting planes out continually still, despite the snowfall. Whether that will change later in the day, we will have to see. They expect the snow to continue for the next few hours, even overnight in Chicago.

But for now, planes are leaving, 230 canceled, that's about 20 percent of the flights. So, 80 percent of the flights are getting in and out of O'Hare.

BALDWIN: Check your flights ahead of time. Ted Rowlands at Chicago's O'Hare, Ted, thank you.

Now to this, Olympian Oscar Pistorius holding his own private memorial service today to honor the woman he shot and killed back on Valentine's Day, 29-year-old Reeva Steenkamp. The double amputee Olympian stands accused of her murder. He says he shot her by accident, thinking she was an intruder. The memorial service for the law graduate and model is happening tonight at the home of Pistorius' uncle where he has been staying ever since he was release on bail last week. Pistorius, keep in mind, is banned from returning to the home he shared with Steenkamp. That is now a crime scene.

Attorney General Eric Holder is the latest Obama Cabinet chief to warn about the effects of impending budget cuts. He talked today in Washington.

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ERIC HOLDER, U.S. ATTORNEY GENERAL: If this so-called sequester goes into effect, it will not only curtail the department's ability to support our state and local partners. It will have a negative impact on the safety of Americans across this great country. Our capacity to respond to crimes, to investigate wrongdoing, and to hold criminals accountable will be reduced.

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BALDWIN: So now we have heard from Attorney General Holder. We have also heard from Ray LaHood, transportation secretary, who says the cuts will cause all kinds of flight delays. The Agriculture Department warning of food inspection furloughs, and possible closures of meat and poultry plants.

Gloria Borger, she is in Washington, all kinds of scary scenarios we have been hearing.

Other than issuing these dire warnings, is anyone doing anything to try to prevent the cuts from kicking in by Friday?

GLORIA BORGER, CNN SENIOR POLITICAL ANALYST: No.

You know, just watching those pictures of Erin in a snowstorm, I was thinking, it is like we know this huge storm is coming to the country, but nobody is buying a shovel. OK. Nobody is getting together and talking. They're trading charges. They're playing a pre-blame game, if you will.

And each side is sticking with its own vision. I think the president is really making a calculation here that once these cuts go into effect, and, again, we have to say it is not all going to happen at once, it would happen gradually, but once these things go into effect, the president believes that the country is going to blame the Republicans more than it will blame him.

BALDWIN: You talk about the president, and we saw him speaking earlier this afternoon in Virginia. He's warning of this, his words, trickle-down effect of defense industry cuts.

Meantime, House Speaker John Boehner, he went out, essentially said that the president is trying to score political points, even started swearing. Gloria, how are the two sides crafting the message here so that everyone thinks it is the other guy's fault, you know, once the pain kicks in?

BORGER: You know, I think that's what that's -- exactly what they're trying to do. But my point is that at a certain point, if these cuts kick in, and if they're hurtful, as we think they will be, I think what the public is going to start to ask is, why didn't you do something to prevent it?

And that's where I think the risk of the White House is, because the president is, after all, president of the United States. And so at a certain point, and it is very hard to tell, Brooke, when that happens, but at a certain point, public opinion starts to shift.

Right now, it looks like most people would blame Republicans. More people would blame Republicans than the president. But that can really shift easily. You see that poll there, 45 to 32 percent. But it could shift if people don't like what they see and they say, either a pox on both houses or perhaps maybe the president ought to have a way to lead out of this.

BALDWIN: We have known about this for some time, haven't we, Gloria Borger?

BORGER: We have. It is a manmade disaster, not a natural one.

(CROSSTALK)

BALDWIN: Where is the shovel? Gloria Borger, thank you so much.

(CROSSTALK)

BALDWIN: Coming up: Some fans bought some tickets to see the legendary rockers The Who 33 years ago. Look at these tickets. They're just slightly old. Here is the deal. The concert was canceled. They never got to see them. That is about to change in a matter of hours. That's coming up.

Also, Dennis Rodman in North Korea? What? We will tell you why he's there next.

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BALDWIN: And first lady Michelle Obama told ABC's Robin Roberts that for her, going shopping at Target is -- quote, unquote -- "like a dream."

The first lady was photographed at a Target back in 2011. Remember, she was wearing the big sunglasses, the disguise, I guess. She said if she had the chance, she is going to -- quote -- "break out of the White House, disguise the family dog Bo, do it again. The first lady also talked about why President Obama has been going gray over the past couple of years. She said, it is not the pressures of the Oval Office. She says it is actually fatherhood.

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MICHELLE OBAMA, FIRST LADY: Fathers, in particular, I don't think they know how they're going to feel until it happens, you know. There is nothing like the look on his face when Malia dresses up for a party, and she's heading out, and he walks past, she walks past him and you can see his face sort of just drop a little bit, like, what was that? He's a little gray. People think the gray is from his job. It is from his children.

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BALDWIN: Parents, can you relate?

Coming up, rock legends The Who canceled a concert 33 years ago. A couple of people actually held on to the ticket stubs, and they get to go to the rain check concert tonight. We will talk to someone who has held on to one of the tickets for three decades next.

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BALDWIN: All right, move over, all the rocker groupies. One die-hard fan of The Who has clearly proven himself after three decades of loyalty.

And, tonight, pretty sweet payoff. Steve Ball never got rid of his two tickets to see The Who in Providence, Rhode Island, back in 1979, even though that concert was canceled. Their hit "Another Tricky Day," the lyrics, you could say, told Ball's story. He didn't get what he wanted and for good reason; 11 people were trampled to death at another Who concert weeks before.

So for public safety, Providence, the mayor, called off the show. But now Ball -- fast-forward 33 years -- going to attend the Who concert tonight. Here he was with the two ticket stubs he held on to, using the same $11.50 tickets to get in.

Here's the two. The venue managers, they decided to honor any ticket from that '79 show.

And Stephen Ball joins me live from Providence.

Steve Ball, welcome. I see your Who shirt. You're ready to rock and roll. Take me back to '79. You're a freshman in college, you wait in line all night long to buy these two tickets to the Who show, boom, it's canceled. Describe your disappointment.

STEPHEN BALL, THE WHO FAN: Oh, well, you know, back then, being 18 years old, it was total devastation. I was really looking forward to seeing them. It would have been first time.

When they were in Boston in 1976, I was still too young, and my mother wouldn't let me go to that show.

BALDWIN: Well, now you get to go. I know you have been to shows before. But this is the first in Providence. As we mentioned, those people were trampled in the previous show. The mayor decided to cancel. I know CNN actually reached out to Pete Townshend. Let me tell you what Pete said -- quote -- "I think the mayor of Providence made an informed decision at the time. I know it was based on what he knew."

And we learned the show tonight, the general manager of this venue, Who coincidentally was supposed to work that show 33 years ago, he wanted to right this wrong. He's honoring the ticket stubs and you held on to yours. How did you do that? Why did you do that?

BALL: I just had this little shoe box. I used to all put my ticket stubs in there. I have been to hundreds of concerts here at the -- well, now the Dunkin' Donuts Center and it always provides a great venue. All the shows I had been to, they were always very, very good shows. There was never any security issues. And I was just totally in shock that that concert got canceled.

But I understand then Mayor Cianci's situation and he had to make that decision. It was a horrible thing that happened in Cincinnati at that time.

BALDWIN: So, here you are, you hop in the car over the weekend, you drive all the way up from Richmond to Providence, Rhode Island, for this made-good on this show. Who gets ticket number two?

BALL: Well, fortunately, the Dunkin' Donuts Center, when we cashed in those two tickets, at that very moment, also offered us to have other tickets, so I have got both my sisters with me this time.

BALDWIN: So at the time, you wanted to take, what was it, one of your sisters. She was, what -- she was in high school at the time?

BALL: Yes. Yes.

BALDWIN: And it is her birthday today.

(CROSSTALK)

BALL: Yes, it's her 50th birthday today. Happy birthday, Louise.

But it was going to be her Christmas present, because the concert was supposed to be on December 17, 1979.

BALDWIN: Do you think the -- here's my final question for you. Do you think that The Who will give you and the other 31 ticket holders from 1979 who will be there tonight, do you think they will give you a special shout-out? Do you hope so?

BALL: Well, hopefully they will. It will just be great to see them live. This will be my third time and every time they put on a fantastic show, the greatest rock band ever.

BALDWIN: OK. Stephen Ball, thank you. Happy birthday to your sister. Have a blast tonight. And we have a written piece on sort of how this whole thing went down, the backstory of it and see more quotes from Pete Townshend. Just go to CNN.com to read the article.

Stephen, have fun.

Coming up next, Seth MacFarlane reveals whether he will host the Oscars again after critics blasted his performance Sunday night.

Plus, my fellow space geeks, listen up. First, a meteor, then an asteroid, and now a comet heading straight for Mars. What? Stay there.

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BALDWIN: Near the bottom of the hour, I'm Brooke Baldwin.

Sports, technology, health, science, showbiz news, we're hitting it all for you right now, beginning with coincidence or unconventional diplomacy. Take a look at who was in North Korea. Just weeks after the country fantasized on YouTube about blowing up a major American city, former NBA bad boy Dennis Rodman, why is he there?

Goodwill visit, documentary shoot with some of his Harlem Globetrotters. Rodman says there is no timing involved here, but he does tweet that he's looking forward to meeting North Korean President Kim Jong-un. His agent says Rodman wants to tell him the only way to go is peace, not war.

Quarterback Tom Brady reportedly will stay with the New England Patriots three more years at a cut-rate price. What's the price? Well, $27 million, according to "Sports Illustrated." But it is a win-win. The Pats can cut deals with other players without hitting the league's salary cap. And in theory, that will surround Brady with more talent to help them return to the Super Bowl, so they would like.

The deal also puts Brady one step closer to retiring with the team that brought him to the NFL. Brady can afford to take one for the team. He's married to Gisele Bundchen, the highest paid supermodel in the whole world.

Booking travel online is supposed to be as quick and easy as buying a book on Amazon, right? Well, it's not, according to the latest measure of customer satisfaction. The American Customer Satisfaction Index looks at evaluations by something like 70,000 consumers. Satisfaction with e-commerce Web sites overall is up more than a point. But it is down for online travel companies, down, by 2.6 percent, the biggest decline actually of all categories.

The survey also finds there is very little difference in the customer satisfaction ratings among travel agencies.

And, parents, if your kids run up the big bill buying virtual goodies through free kids apps without permission, aha, it is almost payback time. Apple has agreed to settle this class-action lawsuit filed by five parents. And if a judge approves, as many as 23 million people will get a credit in the iTunes store.

Zain Asher is in New York.

And, so, Zain, how do parents qualify for the credit?

ZAIN ASHER, CNN CORRESPONDENT: Hi, Brooke.

Well, Apple will send notices to the owners of the accounts affected. To qualify, customers Will have to prove three things, number one, That they were charged for these purchases. They didn't give their password to the kids, and that they already haven't received a refund. This all stems from a lawsuit filed against Apple a couple of years ago by a group of parents.

They were basically upset when their kids were able to make what are called in-app purchases, things like buying add-ons to games and other apps without their permission. They are saying Apple made it too easy for kids to buy games.

Now, here's the problem. Apple used to allow users to make additional purchases for 15 minutes without reentering their password. But it turns out in some cases, children were actually racking up hundreds of dollars in extra charges during that window.

Now, there have been software updates since then that require users to reenter passwords when making in-app purchases and there are adjustments that can be made in the iOS system that give parents more control.

Now, as part of the settlement, Apple will give iTunes credit for people who were charged $30 in virtual goods or less. Those claiming more than $30 can ask for cash.

Brooke? BALDWIN: Zain Asher, thank you.