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FAA Near Collisions Of Drones, Airlines Surge; Kim's Little Sister Gets Huge Promotion; Black Friday Invades Thanksgiving

Aired November 27, 2014 - 16:30   ET

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

(COMMERCIAL BREAK)

BRIANNA KEILAR, CNN GUEST ANCHOR: More than 3 million Americans are expected to be flying to holiday destinations this Thanksgiving weekend, but a new report out by the Federal Aviation Administration says the planes they are now flying on are competing for air space with private drones.

The government says those small remote-controlled aircraft often fitted with cameras are causing real trouble for pilots leading to a surge in near collisions between drones and jet packed with flyers. Here's CNN's Tom Foreman.

(BEGIN VIDEOTAPE)

TOM FOREMAN, CNN CORRESPONDENT (voice-over): New York's busy airports appear to be the epicenter of dangerous encounters involving unmanned aerial vehicles or UAVs. The alarming new FAA report says that three aircraft on the same day reported a very close call with a UAV near LaGuardia.

Another pilot said he almost hit one. Yet another spotted one just below his right wing and two commercial jets almost struck a trashcan sized UAV 5,000 feet in the air.

The worry is rising coast-to-coast. Remotely operated aircraft have unexpectedly popped up over government buildings, national parks, sports stadiums, highways and even at air field where Air Force One is based.

The FAA is working up new rules to cover commercial UAV operation. The report could set the stage for tough regulations and Mark Dombroff says it should. He is an attorney who specializes in aviation issues.

MARK DOMBROFF, AVIATION ATTORNEY: If nothing is done, we're going to have a midair collision in which a lot of people lose their lives.

FOREMAN: Enthusiasts have imagined a brave new world in which UAVs deliver medicine, chase down criminals and even drop off purchases from retailers.

ERIC MALONEY, DRONE ENTHUSIAST: The industry is really growing. It's an exciting time for drones. There's a lot of new technology coming out every month. FOREMAN: But federal approval for any commercial use has been extremely rare. When a man used the UAV to shoot commercial video in Virginia in 2011, the FAA fined him $10,000. The National Transportation Safety Board just confirmed the agency's right to do that.

(on camera): So up until now, a lot of people have operated in this gray space saying it's more like a model, not really like an airplane, but that gray space is going away.

DOMBROFF: You may not agree with the FAA but the FAA has defined it as black or white. You're either a hobbyist, recreational user, or you are not.

FOREMAN (voice-over): Amateurs will still likely be able to fly their UAVs within existing rules, but the new commercial regulations expected in weeks will almost certainly launch a new debate about government power, private rights, and public safety. Tom Foreman, CNN, Washington.

(END VIDEOTAPE)

KEILAR: Joining me now to talk more about this, Richard Quest. How dangerous, Richard, is all of this air traffic?

RICHARD QUEST, CNN AVIATION CORRESPONDENT: If you believe the FAA, it's extremely dangerous. The list of 25 near misses with drones was just published, but when you read some of the accounts, for example, at New York where a Delta Airlines 737, a Virgin Atlantic 747, Delta reports that the drone came within 10 feet of his left wing.

A JetBlue plane in New York says the drone flew under the nose of the aircraft at 1,500 feet beneath them. Now the airline industry says it's a real problem. It's an accident waiting to happen.

The drone enthusiast and those on the other side says not so. The drones cannot do that much damage to aircraft anyway and it's being put out of proportion. But the industry is firm and the aviation industry says, do something.

KEILAR: As the law is catching up here, what are we expecting from these new drone regulations?

QUEST: Well, there we have a hornet's nest practically because the FAA is trying to balance between the hobbyists, who love to fly these smaller drones with those who want to fly big drones with commercial interest like Amazon and others who want to use larger drones at higher altitudes.

So what they've come up with is what is believed is draw proposals no night flying, a limit of 400 feet. You've got to be within sight of the operator. You can't just be flying a drone off into the blue yonder and you should have a low-level pilot's certificate.

The drone enthusiasts say this is a case of death to the whole drone business if this was introduced. Well, the FAA is now going to consult on it. They are going to decide what to do.

But there's no getting away from it, Brianna. Fundamentally, you have two different points of view. Those who say drones need to be encouraged, prospered, and those who say they are a menace and need to be restricted.

KEILAR: Do you think the FAA can even track all of these drones?

QUEST: No is the short answer. They can't because the planes can't track them. By the time the drone -- you're talking about the smaller drones. They are too small to show up on the aircraft radar. Nor can they activate the collision avoidance system that aircraft have on board.

And the problem is that many drone operators are novice, drones often get out of control and they do not realize that they, in many cases, are breaking existing regulations, which have a height restriction of several hundred feet and a distance restriction from airports of five miles.

So what we have here is rules being made while an industry is being created and the two are in the moment, seemingly, in conflict.

KEILAR: I want to ask you, you said that some in the camp of pro drones say that a drone really wouldn't do much damage. It doesn't pose much of a risk. We know, though, that even a small bird is an issue for an airplane. So is that true that that doesn't pose a risk?

QUEST: Whether it's true or not, I don't want to find out.

KEILAR: Good point.

QUEST: Brianna, if I -- look, I fly more than most and frankly, if my pilot is coming into land at LaGuardia, which has a short runway to begin with, a difficult approach with so much air traffic from Kennedy, New York, Teterboro, an odd runway configuration. And in the middle of it all, at the crucial moment of final approach, he's wondering about someone flying a drone, need I say more?

KEILAR: Very well put, Richard Quest, thanks.

Coming up, North Korea reveals a major role for Kim Jong-Un's little sister. Could this 20 something really be the one calling the shots for a nation with nukes?

Plus, flat screens trumping the turkey on Thanksgiving, why Black Friday is now becoming Black Thursday?

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KEILAR: There's been a lot of speculation about who is really in charge of North Korea ever since Kim Jong-Un did a disappearing act from the public eye for weeks. His latest move may not do much to end those rumors after he gave his little sister a big promotion.

(BEGIN VIDEOTAPE) KEILAR ((voice-over): In the secretive hermit kingdom, she may be the only person more mysterious and enigmatic than her older brother. But today, just weeks after Kim Jong-Un resurfaced from a months' long disappearance, it appears Kim's little sister is taking a leading role in her family's iron-fisted regime.

Overnight, in an unexpected twist, North Korea's official news agency began referring to Kim Yo-Jong as a vice department director of the country's governing party.

Aside from the new title, experts say they know very little about the move or even about Kim Yo-Jong herself.

VICTOR CHA, AUTHOR, "THE IMPOSSIBLE STATE": All we know is that she's the younger sister, went to school in Switzerland in her mid-20s. She started showing up publicly from earlier this year at a couple party functions.

KEILAR: Analysts say Kim Yo-Jong is the youngest of seven children that her father, Kim Jong-Il had with four different women. While he was still alive, experts say she took on important responsibilities for her father, like inspecting sites before official visits.

After her father's death and her brother's selection as supreme leader, she apparently began receiving intelligence briefings and handling government policy. She is said to enjoy unfettered access to her brother.

But the public announcement of her new title will most likely lead to speculation about whether she is gaining power, especially after months of questions related to her brother's health.

After being out of the public eye for several weeks this fall, Kim Jong-Un only recently reappeared in photographs smiling and walking with a cane. Some reports have speculated Kim was in hiding after surgery on her angle or foot.

Still, even if her brother is healthy, this new positioning of Kim Yo- Jong is significant in a country where power has been handed down through her family for three generations.

CHA: Clearly an effort to slow track her on to becoming somebody who is important within the system again because there really aren't many bodies left to carry on the sort of Kim clan rule.

(END VIDEOTAPE)

KEILAR: Coming up, a backlash against retail chains that are choosing to begin Black Friday before the dishes are even cleared on the Thanksgiving dinner table. Could these stores make just as much from good PR by giving people the day off?

Plus, all the bands and all the floats, we'll show you the highlights from the Macy's Thanksgiving Day Parade.

Plus, the president's message to the troops. (COMMERCIAL BREAK)

KEILAR: Take it from us, for those of us working, the free meal can be nice, but most people would rather be home on Thanksgiving. That's why there's been a bit of a backlash against retail stores making their employees come in and face the crowds before the clock strikes midnight on Black Friday.

CNN Sunlen Serfaty is live at an Old Navy not too far outside of Washington, D.C., and they are already open, right, Sunlen?

SUNLEN SERFATY, CNN CORRESPONDENT: That's right, Brianna. The shoppers here, they started lining up at 1:00 p.m., the doors then opened at 4:00 p.m. The deals inside already underway.

You can see the cash registers there. There's a line at every cash register inside. While Black Friday seems to be starting earlier than ever well before Thanksgiving dinner is served, it's not without its controversy.

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SERFATY (voice-over): Call in a battle between Thanksgiving dinner and Black Friday deals, after years of opening their doors earlier and earlier, tonight is the major chains are distancing themselves from the ever expanding holiday sale season, not only refusing to open before Friday, but bragging about it.

UNIDENTIFIED MALE: When we look at today at what's going on this year, it really is what some would call a tipping point.

SERFATY: Some stores are now promoting the fact that they'll be closed, slapping up signs like these, a not so subtle shot at the competition.

MARSHAL COHEN, CHIEF INDUSTRY ANALYST, NPD GROUP: They are playing the PR card and sitting there saying, we're going to make this a marketing message and make it about, we do care.

SERFATY: It seems to be working.

AMANDA HIGGS, SHOPPER: I'm all about Black Friday, but Thanksgiving is a day for family.

SERFATY: Some grassroots groups like these are even boycotting the stores opened today.

But with so much money at stake, other stores aren't blinking and will welcome Thanksgiving shoppers. A new CNN/ORC poll shows that's in part because 12 percent of Americans say they don't want to wait for their dinner to settle. That's 36 million Americans pushing for doors to open earlier than ever.

UNIDENTIFIED FEMALE: This is really a response to customer demand. Previous years, we've had great responses from our customers. I believe last year we served over 22 million. SERFATY: Walmart has been opened since 6:00 a.m. Kmart also let shoppers in before dawn and will stay open for 42 hours straight. Other stores like Macy's, Best Buy, and Target will be opened by 6:00 tonight.

While most consumers say they are against the idea of Thanksgiving Day shopping, the National Retail Federation says 74 percent polled last year actually ended up in stores.

LAUREN PAVONE, SHOPPER: I definitely need to go to the ones that are open.

SERFATY: Maybe tonight the lure of a deal may be more powerful than turkey or tradition.

(END VIDEOTAPE)

SERFATY: And three states already have so-called blue laws on the books which ban stores from being opened on this holiday and a handful of other states, Brianna, are moving to pass similar laws. They want retailers to keep their hands off this holiday.

KEILAR: It is Thanksgiving, after all. Sunlen Serfaty, happy Thanksgiving to you. Thanks for your report.

SERFATY: Thank you.

KEILAR: Now joining me now, retail expert, Kristin Bentz. She is the executive director of PMG Venture Group and she is personally big into Black Friday, I will say, but Kristen, why are retailers starting today?

KRISTIN BENTZ, EXECUTIVE DIRECTOR, PMG VENTURE GROUP: Boy, you know, this was more like "50 Shades of Gray" instead of Black Friday and retailers are desperate. So they are opening their doors as early as they possibly can to get their share of your wallet.

KEILAR: OK, so -- part of it obviously is that they depend so much on really this day, this weekend of shopping. How important, how profitable is Black Friday for retailers?

BENTZ: It used to be very profitable. The story with Black Friday and this moniker came the moment that retailers' books went from the red into profitable, which meant that they became profitable.

Now it really is more of a symbolic holiday and you know, retailers have stretched out Black Friday, Black Thursday, Black October. It doesn't really matter anymore in my opinion. It just doesn't.

KEILAR: And also they've got such deep discounts, right, or is that even real? I mean, it seems like they have a lot of sales. How do they really pick up a lot of shopping traffic? How do they pick up profits if they are offering discounts like this?

BENTZ: Well, that's a very interesting point because right now, if you didn't know, the entire country is 50 percent off, even before Black Friday. Now with this crisis that we have, it's going to be even tougher for retailers to maintain margins getting their goods out of the port and onto the shelves to you.

They've had to use air freights instead of port freights. That's going to cost them more money. That's going to eat into their margins. So next quarter when they report their quarterly earnings or monthly earnings, it's going to be very difficult for them to even gain profits.

KEILAR: Well, so it's going to be slim if they even make that up. OK, so you're going early tomorrow, I know, 4:30 a.m. you said, is that right?

BENTZ: No, I'm just on the air at 4:30 a.m.

KEILAR: You're on the air at 4:30 a.m. OK. But there's a lot of people who are -- I mean, they eat their turkey, go out tonight, they are waiting for the morning. I'm more of the online shopper. That's how I do it. How is Black Friday impacted by internet shopping?

BENTZ: Well, I mean, that is Black Friday, I mean, literally. Who wants to like brave all of this traffic and be in the stores when obviously all I want to do is whip out my laptop and have my pajamas on. I think internet shopping is a big impact and I think internet shopping really is the new Black Friday.

KEILAR: Yes, I suppose you could go out in your pajamas, but I do like to stay in and do my shopping. What's the outlook like for holiday shopping this year? Are we thinking that consumers will be spending more than they did last year?

BENTZ: Well, no. Last year, we had terrific weather, a terrific economy. Things are a little better now. There is a little bit more money in consumer's pockets because of low gas prices. I think it's going to be good. I don't think it's going to be great, but it will definitely be better.

KEILAR: All right, so it's going to be good. Not great. The shipping is pretty interesting to me on this because you always look when you shop, especially online, to see if, you know, someone might have a better deal. But the other guy is going to offer cheaper shipping and overall the better deal. These retailers are getting competitive. Explain this to us.

BENTZ: Well, they have to be. I mean, the fascinating thing about studying retail is it is survival of the fittest. So all of these retailers that are offering free shipping now, OK, well, that was important like five years ago. Now that's the norm.

So we've actually -- retailers have trained consumers to shop on discount only and to require free shipping. So any retailers that are jumping on this bandwagon now, that's great for them, but this is what we want. This is the new normal.

KEILAR: Yes, they have to do that. I sure do look for it. All right, Kristin Bentz, thanks so much and have a good day tomorrow when you get up bright and early. Happy Thanksgiving.

BENTZ: Thanks so much.

KEILAR: Coming up, President Obama giving thanks to the troops who are far away from their loved ones on this Thanksgiving his day.

Plus highlights from across the country as we kick off the holiday season.

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KEILAR: Finally this hour, we want to take a moment to recognize the brave members of the U.S. military who can't be home today and to show you some of the highlights from today's Thanksgiving celebrations.

(BEGIN VIDEOTAPE)

MIGUEL MARQUEZ, CNN CORRESPONDENT: This is the Macy's Thanksgiving Day Parade. Some 49 balloons of all shapes and sizes, 27 floats, 12 marching bands, 1,300 cheerleaders and dancers and some thousand clowns and lots and lots of people, happy Thanksgiving.

BARACK OBAMA, PRESIDENT OF THE UNITED STATES OF AMERICA: Thanksgiving is my favorite holiday because, more than any other, it's uniquely American. Each of us brings our own traditions and cultures and recipes to the table, but we all share this day united by the gratitude for the bounty of this nation.

To our service members who are away from home, we say an extra prayer for you and your loved ones and we renew our commitment to take care of you as well as you have taken care of us. God bless you and from my family to yours, happy Thanksgiving.

(END VIDEOTAPE)

KEILAR: Thank you very much for watching. I'm Brianna Keilar. A very happy Thanksgiving from all of us here at CNN. Anthony Bourdain "PARTS UNKNOWN COPENHAGEN" starts right now.