Return to Transcripts main page
CNN Newsroom
Details on a Missing Air France Flight; GM Files for Bankruptcy
Aired June 01, 2009 - 09:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
HEIDI COLLINS, CNN ANCHOR: Lots of breaking news this morning. First, a passenger plane is missing. Air traffic controllers lose contact with an Air France flight like the one you see there.
And it's the end of a road for an American icon. GM has filed for bankruptcy but what is next for the automaker?
Plus an abortion provider shot to death in his church. Now, a suspect is in custody. It is Monday, June 1st. Hi everybody, I'm Heidi Collins. You are in the CNN NEWSROOM.
We begin this hour with the search for Air France flight 447. Brazil's Air Force is looking in an area off the Atlantic ocean now, about 225 miles from the Brazilian coast. The plane was en route from Rio de Janeiro to Paris when controllers lost contact with it. 216 passengers and a dozen crew members are on board. The Airbus A330 was scheduled to land in Paris about four hours ago.
The airline has set up a crisis center now at Charles de Gaulle Airport. Air France says the airplane sent an automatic signal indicating electrical problems while going through an area of strong turbulence.
Now a short time ago, head of Air France spoke at a news conference.
(BEGIN VIDEO CLIP)
PIERRE-HENRI GOURGEON, CEO, AIR FRANCE (Through translator): Around four hours Paris time entered into a zone of strong turbulence and storms. Around 4:15, 15 minutes later, a number of messages of maintenance from the operators showed a failure of several components, in particular, the unexpected situation taking place on the operators. From then, from now, we're going to try to find contact.
(END VIDEO CLIP)
COLLINS: An Air France spokesman says it is possible the plane was hit by lightning. We want to give you a look at the flight path, too. We want to bring in CNN's meteorologist Rob Marciano to talk more about the area in which we are talking about here to be specific.
Obviously, so much that we don't know at this point, Rob. But we do know and we did just hear the gentleman from Air France saying that yes, there were thunderstorms in the area and they were dealing with some strong turbulence. ROB MARCIANO, CNN METEOROLOGIST: Yes, they were heading towards an area that had a lot of thunderstorm activity and it pretty much does, if you're crossing the Atlantic from south to north, you're going to run into this area.
Well, let's first talk about where they were and where they were going. Rio down to the south and then having to go to France, which is to the northeast. So it would have started here and then paralled the coastline up towards the northeast. So it wouldn't have been over the open water, really, for three, maybe four hours until it got into the Atlantic Ocean.
They are launching a search and rescue from this air base, Fernando de Noronha. And then this is the area that they would have had to fly through to get to France. This is what's called the Inter-tropical Convergence Zone. It's an area that basically rings the globe where thunderstorms develop because the winds at the surface converge and that causes thunderstorms.
It will migrate from north to south, depending on the time of year. But that's an area that will always have thunderstorms and it looked particularly active last night and still does right now.
These lightning strikes are detectors, mostly ground-based detectors but it gives you an idea that on either side of the Atlantic there certainly was a lot of thunderstorm activity with lightning and of course any thunderstorm is going to have some turbulence. There's going to be a lot of vertical motion in that air and that tosses a plane around and that certainly was a concern with this particular flight.
Water temperatures in that area in the 70s for the most parts. But the weather happening above the water, obviously, of greater concern when they're trying to figure out what happened to that plane as they try to figure out where it is. Heidi?
COLLINS: Yes. Exactly. A lot more to talk about here, obviously, when you're talking about this particular aircraft and the electronic systems, too, with regard to lightning. So we will delve into as much of that as we possibly can.
Rob Marciano, thanks so much. Check back with you later on.
Meanwhile to this story now today as well. General Motors, an American icon, goes bust. Just last hour the company filed for bankruptcy. The latest chapter in a remarkable downfall.
CNN's Ali Velshi has the bottom line, what does it mean for you. And Deborah Feyerick talks to GM employees. About 20,000 workers will get pink slips in all of this. And Jill Dougherty is at the White House. This morning, President Obama is going to be talking about the bankruptcy and the taxpayers' role in the road ahead.
Now here's a quick rundown of what we do know. Taxpayers now own 60 percent of the new company. The government will shell out $30 billion on top of the $19.4 billion it's already funneled into the company. GM is expected to come out of bankruptcy in 60 to 90 days.
The goal? A stronger, leaner GM. It will have a smaller work force, fewer dealers and fewer factories as well.
Let's go ahead and begin with the filing itself now. What does it mean and are there any surprises in all of this?
CNN business correspondent Ali Velshi is breaking it all down for us. He is briefly interrupting his vacation north of the border and is joining us now from Toronto. Just wanted to explain to everybody why you're coming to us from Toronto, Ali.
What changes at GM are actually going to begin today? What will we see?
ALI VELSHI, CNN SENIOR BUSINESS CORRESPONDENT: Well, you know, when you're saying the bankruptcy could last a few months, we really have to now think of this as two companies. One will be the old GM and then the other one will be the new GM.
The new GM may take a year to 18 months to actually evolve. They are going to start to separate those assets and those problems at GM that they just can't deal with, they couldn't negotiate their way out of. They'll start to dispose of those.
The new GM will be compromised of those factories that work, those workers are going to keep on, those cars that they're going to continue to make, any new cars they're going to make because General Motors is going to bring a new car into the mix, and they will start a new company that is designed around the number of cars that we expect to sell in the United States.
Now part of the problem is despite all of the issues that were going on, we were selling a few years ago, 16 million cars a year in the United States. Not GM, but cars in general. That has now dropped to under 10 million. So the new reality has got to reflect the fact that after all the money the government has put in can General Motors be profitable if only 10 million cars a year are going to be bought in the United States?
And the government thinks that can be the case, but after putting in $19 billion already the U.S. government is now committing another $30 billion. Over $50 billion of taxpayer money will go into this new General Motors.
COLLINS: Yes. And also the fact that the bankruptcy period is only 60 to 90 days. What sort of realistic big changes can happen in that amount of time to emerge?
VELSHI: Well, remember that this has been an ongoing process. Right?
COLLINS: Yes.
VELSHI: GM has been working for the last two months to get to this point trying to avoid bankruptcy but they didn't. But as a result they've had new negotiations with the United Auto Workers which will bring some wages down, it'll cut some benefits.
Not good for the workers but they were concessions designed to try and keep this company going. They've got some discussions going on with the bondholders.
Really what's going to change immediately is that we're all going to own GM. The U.S. government will have 60 percent of it.
COLLINS: Yes.
VELSHI: The Canadian government will have another 10 percent. The UAW will own 17.5 percent. The bondholders 10 percent.
Everybody doesn't want to own GM. The bottom line is everybody who's in it now is forced to be in it so they're going to be forced to work together to try and get this company to be successful so that they can sell their shares and get back to the business of whatever they were doing.
The government, the UAW, none of them wants to own this company. So the good news is they're all in the same mess together. And they are going to have to try and work out, let's get rid of this, let's downsize this and let's come out a leaner, meaner company than when they went into bankruptcy.
COLLINS: Right. Exactly. All right. Our chief business correspondent, Ali Velshi, for us. Ali, thanks so much.
GM looks ahead. GM workers look for answers. So who will lose their jobs? Whose plants will actually remain open?
CNN's Deborah Feyerick is in Warren, Michigan now just outside of Detroit. She's joining us with the reaction from GM employees.
Certainly not a good day for them. Not a surprise either so I bet there's a lot of mixed emotions, Deb.
DEBORAH FEYERICK, CNN CORRESPONDENT: Well, absolutely, Heidi. As a matter of fact, you have a lot of uncertainty, a lot of resignation, a lot of anxiety. Nobody knows which plants are going to close but they do know that 11 plants will do so, three more remaining idle.
The problem is, is that the workers feel like they're not getting the answers which ones are going to remain viable. What we do know is the more profitable sections of the company like Cadillac, Chevrolet, those will likely continue as a new GM.
It's the rest, the brands that have not been selling like Hummer and Saab and Pontiac, all of those will being liquidated. And so the workers right now just trying to figure out exactly what the future holds for them but we can tell you, morale right now low.
(BEGIN VIDEO CLIP)
GERTRUD FOSTER, GM ASSEMBLY WORKER: I don't know if this is going to be one of the plants that are going down. But, you know, like I said, what are you going to do. There's nothing we can do.
It's a day-to-day situation. And just -- you know, got to go with the flow. But I thank God I have a job, you know, but it's like -- like I said a day-to-day situation.
(END VIDEO CLIP)
FEYERICK: And that's one of the things that you hear a lot from the workers. And that is, is that many of them invested their lives in this country. Some of them here for decades. Their fathers, their uncles, their cousins all worked here.
COLLINS: Right.
FEYERICK: And so really, they're mourning the loss of this company as it has existed and they are sort of hunkering down to see how it's going to reinvent itself. And of course, it's going into bankruptcy is simply so that company can have a chance to do what it needs to do without the pressure of the creditors.
The reason they declared bankruptcy today is because the company owed $1 million to the bondholders and that's why they decided to do what they did. But right now, the workers here, you know, they're shifts are coming and going. And they just -- they don't know what the future is going to bring. Heidi?
COLLINS: Yes. Understood. All right. Our Deb Feyerick live for us live in Warren, Michigan. Thank you, Deb.
Later this morning now, President Obama is expected to voice his support for the GM's bankruptcy and the taxpayers' role in keeping it afloat. CNN's Jill Dougherty is joining us from the White House.
So, Jill, the government says they will take a hands-off approach to running the company, but can they really stick to that at this point?
JILL DOUGHERTY, CNN CORRESPONDENT: Well, that's a question, you know? That's the line that we will hear, certainly, that they are going to try to do that. But there are a lot of questions, you know, when you come down to how it's going to be run and some of the issues, the government says it won't interfere but there are also some questions where cars will be made, what kind of cars.
There are a lot of implications for this. And, yet, here, I think, if we break it down into like three things the president is trying to get across today, the first one would have to be the government is a reluctant shareholder. The government doesn't want to be in the auto business, he will argue, and it will try to get out as quickly as possible.
The second would be hands off the management. The president is going to, we expect, say that they won't be getting into the nitty-gritty of how to run this company. They will vote, of course, on the selection of the board of directors, but that is about it.
And then the last thing would be make the new GM profitable. And the reason, of course, is that they want the taxpayers to be paid back. So those would be the three main things, I think, Heidi.
COLLINS: All right. Very good. Understood. Jill Dougherty for us today outside the White House. Appreciate that, Jill.
And we will have live coverage of President Obama's remarks later this morning. He is scheduled to speak on GM at 11:55 Eastern, 8:55 Pacific and of course you can see it right here on CNN.
Back to the breaking news now this morning on the Air France plane. CNN's Jim Bittermann is our senior international correspondent. He is joining us now by phone from Charles de Gaulle Airport.
So, Jim, we are aware that there is a crisis center that's been set up there. Tell a little bit about that and what else you may be learning in the wake of this story.
(ON THE PHONE)
JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT: Heidi, in fact, yes, crisis is set up here for the family and friends of those people waiting for this flight to come in about four hours and discovered, in fact, that it will probably not be coming in.
No one has officially said that the plane has crashed but there's every indication that it has. There's no denying that's for certain. And the government is saying that they are sending various support teams here, including psychiatrists and medical people to help out the families who, obviously, are absolutely devastated by the news that they received when they came to the airport this morning.
Basically, what we've heard most recently was a news conference by director general of Air France who outlined a scenario in which the plane had taken off from Rio de Janeiro and something over 3 1/2 hours into its flight when it radioed its normal radio contact in just before hitting a zone of turbulence.
This is -- today is the official start of the Atlantic hurricane season and it ran into some turbulence over the South Atlantic on its way to Paris and was only a short while after that that the automated computers aboard the plane sent out automated signals to the ground suggesting that there had been a number of catastrophic failures aboard the plane and that was the last anybody had heard of the flight.
So at this point in time, there's a big assumption here that, in fact, the plane has crashed. Heidi?
COLLINS: All right. We, obviously, are following this story very, very closely. We sure do appreciate your reporting. Jim Bittermann coming to us from Charles de Gaulle Airport there in France where we know that there has been a crisis center set up. 228 people aboard this Air France flight. We continue to follow that story closely.
An abortion provider shot to death in his church. And now a suspect is in custody. Investigators say they are monitoring the Internet as part of their investigation. (COMMERCIAL BREAK)
COLLINS: A 51-year-old Kansas man has been charged with murder in the church shooting death of Dr. George Tiller. Tiller was one of the few U.S. physicians who performed late-term abortion.
CNN's Ted Rowlands is joining us now live from Wichita with the latest.
Ted, good morning to you.
TED ROWLANDS, CNN CORRESPONDENT: Good morning, Heidi. Dr. Tiller was serving as an usher at his church on Sunday when services started. He was basically, according to police, in the front of the church in the foray area.
The church service had just begun at 10:00. His wife was singing in the choir. There weren't a lot of people out in that area according to police. That's when the gunman walked in and killed Tiller with just one shot. We don't know where he was shot but he was pronounced dead at the scene when paramedics arrived.
The suspect then was able to get away, but before he did, witnesses spotted his license plate and got a make on his car. That made all the difference in terms of the arrest.
Now Tiller has been at the center of the abortion debate for decades still. People on both sides of this argument -- of this debate were shocked by his murder.
(BEGIN VIDEOTAPE)
ROWLANDS, (voice-over): Dr. George Tiller was shot and killed in the foray of his church where he was serving as an usher. His wife, witnesses say, was singing in the choir.
MICKEY COHLMIA, REFORMATION LUTHERAN CHURCH MEMBER: It's heart- wrenching that something in our community could happen as evil as this in his church.
ROWLANDS: Dr. Tiller was one of only a few physicians who performed late-term abortions and was a longtime target of anti-abortion extremists. In 1993, Tiller was shot in both arms while leaving his Wichita, Kansas clinic.
Police say the suspect in Tiller's killing was arrested about four hours after the shooting on Interstate 35 near Gardner, Kansas. At this point, they believe he acted alone, but say they are monitoring the Internet as part of their investigation.
DET. TOM STOLTZ, WICHITA, KANSAS POLICE: There's a lot of information flowing on the internet right now between pro life and pro choice groups and, unfortunately, we don't have the luxury as law enforcement to focus only on this case. We have to focus on a bigger picture, so we have a whole other facet going we will be investigating. ROWLANDS: While most of the reaction from both sides of the abortion debate condemns the murder, Randall Terry, a veteran anti-abortion activist, said, quote, "George Tiller was a mass murderer."
Dr. Tiller was 67, married with four children and 10 grandchildren. A family statement says, in part, "We asked that he remembered as a good husband, father and grandfather, and dedicated servant on behalf of the rights of women everywhere."
(END VIDEOTAPE)
ROWLANDS: Scott Roeder is a large man, 6'2", 250 pounds. He was arrested without incident according to police. They did not find the weapon in the vehicle. It's unclear whether they have found the weapon since.
Roeder was in his car, the same car as that the parishioners had identified. They did find a single rose in the back window. That is a symbol for anti-abortion activists. That, they said, was the only specific point, description wise during the arrest itself. Otherwise, went off basically very easily.
Today, outside the courthouse, media from across the country, as you imagine, have gathered today. We expect that Roeder could be making his first court appearance as early as this afternoon here in Wichita.
COLLINS: Yes. It was interesting, too, Ted. President Barack Obama actually came out and made a statement on what happened to Dr. Tiller.
ROWLANDS: Yes. The president issued a statement last night, shortly after the news of the murder took place and he basically denounced the action and also acknowledged that divisiveness of the abortion issue, but urged people to deal with it in the context of debate and, of course, denounces (INAUDIBLE).
COLLINS: All right. Our Ted Rowlands, thanks so much for the very latest, coming to us out of Wichita this morning. We'll stay on top of that story as well.
Now Dr. Tiller's shooting is the latest in a history of violent attacks and acts vandalism committed against abortion providers. Here's a look at some recent cases.
In April 2007 a homemade bomb was placed in a parking lot of women's heath center in Austin, Texas. A bomb squad diffused the device and no one was hurt. In October 1998 an abortion opponent killed a doctor at his home in Buffalo, New York.
January of 1998 a bomb outside the clinic in Birmingham, Alabama killed a police officer and injured several other people. And in December of 1994, two receptionists were killed when a man opened fire inside two Boston-area abortion clinics.
Bankruptcy. What does it mean if you're shopping for a GM car or driving one already? And as GM goes, so goes Spring Hill, Tennessee. How this is affecting workers way outside of Detroit. (COMMERCIAL BREAK)
COLLINS: Quickly want to let you know in the wake of the news on General Motors filing for bankruptcy today, the Dow Jones Industrial Average have actually dropped General Motors and Citigroup from, as we said, the closely watched Dow Jones Industrial Average.
We did tell you about this on Friday that this is what would happen. We did not know who they'd be replaced by. So we now know they will be replaced by technology bellwether Cisco Systems and also by the financial services giant Travelers. So we'll stay on top of that story as well and watch those numbers closely today.
The downfall of an icon. If you own a GM car or you're thinking about buying one, what does the bankruptcy actually mean to you?
Here to walk us through some of that CNN personal finance editor, Gerri Willis.
So, yes, a lot of people are wondering the answer to that question today.
GERRI WILLIS, CNN PERSONAL FINANCE EDITOR: Right, Heidi. Well, look, if you own a GM car, one of the biggest issues you'll face is your dealership could be shut down. That means you may have to travel further to get to a garage and wait time to maybe longer to get your car fixed.
To find a new place to get your car service, go to GM's dealer locator on their Web site. But if you look at it, it's just routine maintenance (INAUDIBLE) like oil changes, consider going to an independent shop for that. Not only are they're more convenient, but "Consumer Reports" say it's usually less expensive than dealerships. Just make sure to hold on those receipts, Heidi?
COLLINS: Yes, what's your advice to people who just want to get a GM car on the cheap?
WILLIS: Well, you know, your timing is right. Incentives on GM cars are historic. Take a look at these deals. The 2009 Cadillac Escalade up to $4,500 cash back, '09 Tahoe, up to $7,000 cash back. Chevy Impala, '09 again, $6,000 cash back plus low-interest financing and all this before dealer discounts which depends on where you live and the type of car you want and your dealership.
And as we've mentioned, warranties shouldn't be a problem since both the company and Uncle Sam will be standing behind them. Heidi?
COLLINS: Yes. So what's the best strategy for getting rock bottom deal on a GM car right now if that's what you want to be doing?
WILLIS: Right. Well, the first thing you do is find a dealership that's going out of business. The deal you get is more dependent on how the dealer is doing than how GM is doing. Dealerships going out of business will be more desperate to get cars off their lot. And you want to call the dealership, not go there first. Ask if they've got the car you're interested in before you show up in person. This way you avoid getting persuaded into buying a different kind of car if they don't have what you want.
Now know the incentives and price the dealer paid for it. Look, Heidi, 25 percent of vehicles are sold below what the dealer paid across the board, 17 percent of GM vehicles are selling below what the dealer paid. That's according to Truecars.com.
Negotiate but don't bully. Don't go in offering half of the vehicle's value but you do have leverage since auto sales, well, they're not doing very well anywhere at all.
Keep in mind, you may want to wait a few weeks or even a few months with these dealerships to get the best deals. They have a little time here. Availablity of cars is going to slowly diminish so you may have to contend with a car, with the color you don't like or features you're not crazy about, but, ultimately, you should be able to get a fantastic deal if you wait a few months. Go to these dealerships that are actually going out of business.
COLLINS: All right. Our personal finance editor, Gerri Willis. Gerri, thanks so much.
WILLIS: My pleasure.
COLLINS: An Air France flight with 228 people on board missing over the Atlantic. We've learned the plane did send out an automatic signal indicating electrical problems. We'll have an update on the story coming up.
(COMMERCIAL BREAK)
ANNOUNCER: Live in the CNN NEWSROOM, Heidi Collins.
COLLINS: The Dow Jones Industrial Average finished higher in March, April and May, and the blue chips are looking to start off June with a bang.
Susan Lisovicz is at the New York Stock Exchange now where the opening bell is just about to ring it looks like. Hi there, Susan.
SUSAN LISOVICZ, CNN CORRESPONDENT: Hi there, Heidi. Yes, there's this old expression, sell in May and go away. On Wall Street, well, it certainly did not ring true in May in the first day of this new month, June, looks like we're going to have a nice rally following big gains in Asia and Europe.
The market not expected to have much of a reaction to the GM bankruptcy filing, since everyone knew it was coming.
COLLINS: Yes.
LISOVICZ: GM shares closed on Friday at 75 cents. They will not open for trading here at the New York stock exchange. There is the bell. And GM will be removed from the Dow Jones Industrial Average effective June 8th. It's being replaced by technology giant Cisco System. Dow Jones also took the opportunity to make another alteration to the index. It's replacing Citigroup, a stock battered by the financial crisis that fell to a low of 97 cents earlier this year. Citi will be replaced by financial services company travelers which makes its return to the Dow 30.
And yes, Citi did buy travelers and then spun it off. I mean that's how wacky things have been over the last year or so. Shares of Ford, the only publicly traded stocks, are moving higher, with GM in bankruptcy.
Ford is the one to turn to at this point, and Ford is planning a significant production increase, I should say, hoping to increase its market share at the expense of GM and Chrysler.
And right in the first minute or so of trading, we're seeing a nice rally. We're also seeing a rally in oil prices yet again. Trading above $67 a barrel. That is not a good thing. But we have seen a rally that has affected not only stock prices, but commodity prices as well.
Right now, the Dow is up 86 points and one percent. Ditto for the NASDAQ and the S&P 500.
Heidi, back to you.
HEIDI COLLINS, CNN ANCHOR: All right. Susan Lisovicz, we are watching closely. Thanks so much.
LISOVICZ: You're welcome.
COLLINS: We'll check back a little bit later on.
Meanwhile, what exactly does a smaller GM mean to you at home? And will the 60 to 90 days of bankruptcy protection actually be enough to reinvent a former symbol of U.S. economic dominance?
Well, joining us now with some answers to those questions. Neal Boudette, Detroit's bureau chief for "The Wall Street Journal."
Good morning to you, Neal. Thanks so much for being here. Once again, as we've been saying, not a surprise that this happened today, but, still, obviously, news to talk about.
I want to read something to you out of the "The Wall Street Journal" this morning and get your reaction. It says this, "The question now facing 56,000 autoworkers, 3,600 GM dealers and the Obama administration. Will it work?"
So what do you think, Neal?
NEAL BOUDETTE, DETROIT'S BUREAU CHIEF, "THE WALL STREET JOURNAL": Well, I think the chances are pretty good. A lot of people look at bankruptcy as an end, but, you know, it's really a new beginning for the company. They should get out of this pretty quickly. And they've got all the agreements in line they need to restructure the company. And if they get out of bankruptcy, they will have a dramatically reduced cost structure and they should be able to go forward and be reasonably profitable and in a fairly short period of time, especially if the U.S. economy comes back. Of course, if the economy doesn't come back, all bets are off.
COLLINS: Well, right. And then, obviously, the big question is will consumers buy GM cars? I mean, isn't that the big question? You say you wouldn't be surprised if Americans sort of rally around this U.S. company.
BOUDETTE: That's right. If you look at Chrysler, Chrysler has been in bankruptcy for 30 days, and their sales are down in the last month, but not dramatically so compared to the rest of the market. The rest of the industry is also down. So I think Americans will buy from a company in bankruptcy, because they know the U.S. government is guaranteeing the warranty on their cars. And they have an idea that this bankruptcy is a temporary thing. It's not something it's going to drag on for months and months or more than a year that would give them reason to worry about the company's future.
COLLINS: Well, what's the reaction? Obviously, we're talking to you from the state of Michigan. What's the reaction in Detroit as you know it?
BOUDETTE: Well, I think people here have suspected GM was going to go into bankruptcy for so long now, that it's almost -- I wouldn't say a nonevent, but it's not that big a deal for people. It's not that people are fretting or worried. They have been fretting and worrying for a long time. The state is in a very tough economic situation and highest unemployment in the nation. But this filing today is something they had expected, and so it's not much of a shock.
COLLINS: All right. Neal Boudette, we continue to follow the story alongside you. Thanks so much.
BOUDETTE: Pleasure.
COLLINS: He's our Detroit bureau chief for the "Wall Street Journal." Thank you.
President Obama will address the GM bankruptcy later this morning. He's speaking at 11:55 Eastern, 8:55 Pacific. You can see that here live on CNN.
And also the search for Air France Flight 447. We are going to be talking to a former NTSB investigator coming up right after the break.
(COMMERCIAL BREAK)
COLLINS: We begin this hour with a search for Air France Flight 447. Brazil's Air Force is looking in an area off the Atlantic Ocean about 225 miles from the Brazilian Coast. You can see the map there on the screen. Now the plane was en route from Rio de Janeiro to Paris when controllers lost contact with it. 216 passengers and a dozen crew members were aboard. The airbus 8330 was scheduled to land in Paris about four hours. The airline has set up a crisis center at Charles De Gaulle Airport. Air France says the plane sent an automatic signal indicating electrical problems while going through an area of strong turbulence and weather.
A short time ago, the head of Air France spoke at a news conference.
(BEGIN VIDEO CLIP)
PIERRE HENRI GOURGEON, CEO, AIR FRANCE (through translator): Around four hours Paris Time entered into a zone of strong turbulence and storms. Around 4:15, 15 minutes later, a number of messages of maintenance from the operators showed a failure of several components, in particular, the unexpected situation taking place on the apparatus. From then, from now, we're going to try and find contact.
(END VIDEO CLIP)
COLLINS: An Air France spokesman says it is possible the plane was hit by lightning.
Joining us on the phone now to talk more about the missing Air France flight is former NTSB investigator Greg Feith.
So, Greg, neither one of us is in the business of speculation here. But, obviously, after hearing from the gentleman, the director general of Air France talking about weather and talking about this automatic signal indicating there is an electrical problem, it leads us to think about a couple of different things that could have been going on here.
What do you make of it?
GREG FEITH, FORMER NTSB INVESTIGATOR: Heidi, one of the things about the A330 Airbus is that all of the systems, the flight control systems are what they call fly-by wires. So when the pilot makes a control input, it sends a signal into the computer and then the computer actually moves the flight control. If they've had any kind of total electrical failure or an electrical system anomaly because of them flying through this area of a thunderstorm and being struck by lightning, that could incapacitate the airplane enough where the pilots may not be able to remain in control of the airplane.
COLLINS: Now exactly what do you mean by that, Greg? Because when we talk layman's terms here, some people have referred to this type of aircraft as an electrical jet if you will. That means the pilot cannot take over and manually fly the plane?
FEITH: He can manually fly the airplane with backup systems. They can use battery power. They can use what they call a rat or ram air turbine that drops out from underneath the aircraft and spins to create some limited electrical power. But if there is something that has gone bad with the computers, I think on that airplane, there's three or four of them. If there was a multiple failure of those computers, then, all of a sudden now, they aren't able to control the manipulation of the flight controls themselves and the airplane could have been out of control of the pilots. COLLINS: So what you're talking about, as we have again heard from Air France spokesman that it is possible this plane was hit by lightning, that would be the case in what you're talking about?
FEITH: That would be probably one source of what caused the electrical anomaly. Now, of course, like anything else, like with your, you know, sophisticated TVs and computers, if you have a big power surge and it knocks out the power supply to those computers or to your home computer, it now renders, it incapacitated, unworkable, and now the crew has to come up with other possible, you know, ways to control that airplane. And there are very limited ways to control the airplane, especially, if they're in an adverse area of weather. They are at night, they are at altitude. You know? That's a bad combination.
COLLINS: Yes. Absolutely. All right. Now, Greg, because you were a former NTSB investigators, what are we likely to see happen next here? Obviously, we have not even heard that they have been able to locate this aircraft just yet.
FEITH: We would think that one, I mean, from an investigative standpoint, we would, you know, if the crew was able to maintain control of the airplane and divert to an alternate airport, we would have expected to hear somebody reporting this airplane landed.
COLLINS: Sure.
FEITH: If the airplane crashed on land anywhere, other than a very desolate remote area where nobody is, we would have expected somebody to report it. So most likely, the plane is down in the water. So they will go back and look at the last radar hit.
And the last -- there's mandatory reporting points as you cross the ocean. So they'll go back and look at the last communication, last radar hits and then try to project, based on speed and altitude, where that airplane may have gone into the water and then send search operations out there.
COLLINS: All right. Greg Feith, we will stay in touch with you and sure do appreciate your help this morning. Coming to us out of Denver this morning. Greg Feith, former NTSB investigator.
Thanks so much, Greg.
FEITH: You're welcome, Heidi.
COLLINS: GM's sputters, stalls and slides into bankruptcy. The American icon officially filed the papers just last hour. Here's a quick rundown of what we know. Taxpayers now own 60 percent of the new company. The government will shell out $30 billion on top of the 19.4 billion it's already loaned to the company. GM could come out of bankruptcy in 60 to 90 days. The goal, of course, is stronger, leaner GM. It will have a smaller work force, fewer dealers and fewer factories as well.
GM brand Saturn was supposed to be the different kind of car company, but it didn't revitalize GM like executives had hoped two years ago.
Sean Callebs visit the city now where it's not just Saturn's future at stake.
(BEGIN VIDEOTAPE)
SEAN CALLEBS, CNN GENERAL ASSIGNMENT CORRESPONDENT (voice-over): Little League and General Motors, American icons.
But in the community of Spring Hill, about a 45-minute drive, south of Nashville, wannabees could be on the way out. GM could possibly shut down, phased out or sell of this factory in Spring Hill.
Among the more than 3,000 anxious employees, Johnny Miranda, who left a GM job in Van Ives, California, 16 years ago to come work at this facility.
JOHNNY MIRANDA, GM AUTO WORKER: I want to think positive and a lot of people, everybody -- because it could bring you down, it can really mess you up if you think, you know, they're going to close it and you're going to lose your job.
CALLEBS: For years and years, this plant made Saturn vehicles. It was supposed be to the car and the business plan that breathed new life into GM by taking sales away from fuel-efficient Japanese cars. Saturn didn't revolutionize the industry, and two years ago, the Spring Hill plant, stopped making the Saturn and began turning out Chevys.
Sunday afternoon in the park is a welcome break, a chance to play with the kids and not think about the possibility of layoffs and mounting debts.
Almost everyone in Spring Hill knows someone who's job is on the line.
WILL BARNES, SPRING HILL RESIDENT: My father has worked for GM. He's worked for GM ever since the day he graduated from college. You know, and he's cut his yard five times this week, because he doesn't, you know, this is the level of uncertainty for him. And so -- and I hate to see him in that situation.
CALLEBS: Over the last two decade, subdivision after subdivision cropped up, and the town of Spring Hill blossomed in the shadow of the Saturn plant now called GM Spring Hill Manufacturing. But now that GM is filing for bankruptcy protection, this plant could be sold or closed in an effort to make GM leaner and keep the company in business.
MIRANDA: It's going to hurt. No question. It will hurt.
(END VIDEOTAPE)
COLLINS: Sean Callebs joining us now live at the plant in Spring Hill, Tennessee.
So, Sean, what kind of impact would a closing have on the community and its unemployment rate, too?
CALLEBS: Well, it's going to have a huge impact. There's no way around it really. This area really sprang up because of the Saturn plant, which is now GM. But in the recent years, it has become more of a bedroom community for the Nashville area. But I've been listening to talk radio all morning, clearly, this is the issue folks are talking about.
Unemployment rate is about 15 percent here in this county. If you lose a few thousand jobs, they expect it could go up in the 30 percent area. So it could have a very punishing effect. We talked to a lot of people, Heidi, who moved down here from Michigan about 20 years ago because they had gone through this up in that area. So now they're kind of reliving a nightmare. A lot of people have set up new homes down here, new lives. They never thought they would have to go through this again.
COLLINS: Wow. All right. Sean Callebs following this story for us from Spring Hill, Tennessee.
Sean, thank you.
He survived a shooting once before. But this one in church took his life.
(COMMERCIAL BREAK)
COLLINS: Head on over to Rob Marciano now, because it is hurricane headquarters, mainly because today is the first day of the Atlantic hurricane season, right?
(WEATHER REPORT)
COLLINS: I'm glad you didn't call me hurricane Heidi like somebody else did earlier today.
ROB MARCIANO, AMS METEOROLOGIST: I'm sure you've been called that more than once.
COLLINS: Yes. All right, Rob. We'll check back a little later on. I know you are seriously also helping us out with this Air France flight as we are unaware of its location right now. So appreciate that. Thank you.
MARCIANO: All right. See you later.
COLLINS: A 51-year-old Kansas man has been charged with first-degree murder in the church shooting death of Dr. George Tiller. A vigil was held in Wichita last night for Tiller, one of the few physicians who still performed late-term abortions.
CNN's Josh Levs has more.
(BEGIN VIDEOTAPE)
JOSH LEVS, CNN CORRESPONDENT (voice-over): He was a major target of antiabortion groups. A man who never wavered in the face of protests, trials and violence. In 1993, Dr. George Tiller was shot and wounded in both arms. In 1986 his clinic was bombed. He continued to be one of the few doctors who performed late-term abortions. In 1999, he described the philosophy of his Wichita, Kansas clinic.
DR. GEORGE TILLER, ABORTIONIST: Third trimester abortion is simply a part of abortion. We have constructed our clinic and our philosophy along the lines that until you have natural survival hood, the woman is the patient, not the fetus. Now when does natural survival hood come on? Good question. Some time after the end of the second trimester.
LEVS: On the clinic's Web site, Tiller's said the facility would perform elective abortions until a fetus is viable. That viability he said is determined by the attending physician.
Tiller faced repeated legal challenges. In March, he was acquitted on 19 counts of performing procedures unlawfully at his clinic. He also faced many peaceful demonstrations. By people who found his work unconscionable.
UNIDENTIFIED MALE: I guess just devotion to God, and what I believe that gets me out here.
LEVS: Groups on both sides of the abortion debate condemned his killing. "Operation Rescue," which opposes abortion rights said, "we denounced vigilantism and the cowardly act".
NARAL Pro-Choice America said, "The murder will send a chill down the spines of the brave and courageous providers that serve women across this country."
George Tiller, 67 years old, was known for his work but was also a family man. In a statement his family called the killing an unspeakable tragedy. And said, "we ask that he be remembered as a good husband, father and grandfather and a dedicated servant on behalf of the rights of women everywhere."
Josh Levs, CNN.
(END VIDEOTAPE)
COLLINS: The confirmation hearings are pending, but this week's Supreme Court nominee Sonia Sotomayor starts making her case on Capitol Hill.
(COMMERCIAL BREAK)
COLLINS: Seven months after voters went to the polls, the fate of a senate seat from Minnesota lies with that state's Supreme Court. Justices today will hear arguments from attorneys for Republican Norm Coleman and Democrat Al Franken.
Franken leads Coleman by 312 votes. Coleman is asking for previously rejected absentee ballots to be counted. If Coleman loses, he could petition the U.S. Supreme Court, but it is uncertain that court would take on the case.
Sonia Sotomayor will face some of her first challenges as a Supreme Court nominee tomorrow. She'll go to Capitol Hill to meet with Senate Majority Leader Harry Reid, as well as Democratic and Republican members of the Senate Judiciary Committee. It's a chance for them to get to know each other before her hearings begin.
President Obama wants Sotomayor on the bench before the next term starts. He would like to see the Senate confirm her before August. That's because Congress will go on recess for that month. Republicans want more time to consider her. They want to vote after the break in September. The next court term begins on October 5th. The president wants Sotomayor seated well before then.
Overhauling health care, top of mind, this week. Senator Ted Kennedy is meeting with Democrats from his health committee to be in weighing his proposals to extend healthcare to all. The Senate Finance Committee will also meet to work on that same issue. And health industry groups are expected to deliver specific plans to the White House today backing up their recent pledge to curb their own costs by $2 trillion over the next ten years.
Well, there is an awful lot going on this morning. We're staying on top of it. All of it. All of that news for you. Our CNN crews are covering it for us. Let's now begin with Stephanie Elam.
Hi, Stephanie.
STEPHANIE ELAM, CNN BUSINESS CORRESPONDENT: Hi, Heidi. It is official. General Motors is in bankruptcy. So what does this mean for GM shareholders and for its of employees? I'll have that at the top of the hour.
Heidi?
MARCIANO: And I'm Rob Marciano in the CNN severe weather center. Hurricane headquarters. It is the first day of the Atlantic tropical season. And we'll tell you what the forecast is, and what things are looking like. That's coming up at the top of the hour.
JIM ACOSTA, CNN GENERAL ASSIGNMENT CORRESPONDENT: And I'm Jim Acosta in Washington. Judge Sotomayor and the issue of race. Just who is out of order? I'll have that story coming up in the CNN NEWSROOM.
COLLINS: All right, very good, guys. Thanks so much.
We will also have the very latest on the missing Air France flight. We're going live to Charles De Gaulle Airport in Paris.
(COMMERCIAL BREAK)
COLLINS: An Air France plane had electrical problems before it disappeared between Rio de Janeiro and Paris. A spokesman for the airline says the plane could have been hit by lightning. 228 people are on board that plane. The plane had been scheduled to land about five hours ago. We are watching it closely for you. Beginning today, U.S. and Canadian citizens who want to cross a border must present a passport or a limited number of other approved travel documents. In addition to the Canadian border, the new rules apply to those entering the U.S. from Mexico, Bermuda and Caribbean countries.
A 2,300-year-old temple in Myanmar collapses while workers are trying to repair it. At least two people were killed. A number of others injured. Some people were still in the debris one day after the pagoda collapsed.
We want to get you updated now on this breaking news story that we have been following all morning long. An Air France flight vanished over the Atlantic Ocean. 228 people were on board that flight that left Rio de Janeiro and had been scheduled to land in Paris about five hours ago. A top Air France executive said the plane was experiencing electrical problems and turbulence before it vanished.
The airline has set up a crisis center now at Charles De Gaulle airport. Our Jim Bittermann is there. We'll be hearing from him in just a few short minutes.
