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Live From...
John Boehner Named House Majority Leader; Republicans Choose New House Majority Leader; Indictments Announced in Florida Homeless Beatings Case; Airline Fortunes
Aired February 02, 2006 - 14:57 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
KYRA PHILLIPS, CNN ANCHOR: An update today on Capitol Hill -- acting House Majority Leader Roy Blunt claimed that he had enough votes to get the job on a permanent basis. He was wrong.
Instead, Republicans elected Ohio Representative John Boehner to replace Tom DeLay.
CNN congressional correspondent Ed Henry joins us with more.
Following the balloting, we thought it would go one way, and then it went the other.
ED HENRY, CNN CONGRESSIONAL CORRESPONDENT: That's right, quite a dramatic development, really.
John Boehner had been gaining ground on Roy Blunt. But, as you noted, he had been insisting publicly he had the votes. He clearly did not. It was 122-109 in favor of Boehner. But that was on a second ballot. As you know, a lot of drama in the room just around the corner from me.
House Republicans, they do this by secret ballot, just as the Democrats do. And they have their leadership elections. And there's a lot of horse-trading behind closed doors. You know, the problem for these candidates for these leadership jobs is, they think they have the votes wrapped up, but, since it's a secret ballot, there's a lot of double-dealing going on, where some people are saying, yes, I'm with you, Roy Blunt, and then they go behind closed doors and, in secret ballot, they vote for John Boehner.
And what happened, on the first ballot, is, it turned out there were more ballots than actual lawmakers voting. So, they had to redo it. There was concern that there were voting irregularities, there was a some sort of problem.
They then actually got to the revote, and -- and Roy Blunt did not have the -- the 117 votes he needed for a clear victory in the first ballot. They had to go to a second ballot. John Boehner won there.
Democrats are already saying, this is status quo, it's more of the same, because John Boehner, as you know, was in the Republican leadership after the 1994 Republican revolution. He got bounced after the '98 elections, when Republicans had a little bit more of a little bit of a bloodbath after that election, concern that they lost seats and lost their way.
They're back in the same boat, almost -- these days, a lot of concern up here among fellow Republicans to John Boehner, who were saying they were nervous. They thought Roy Blunt was too much of the status quo. He was already a member of the leadership, and, in fact, is going to stay a member of the leadership. He's now going to stay on in the number-three job, Republican whip.
And it was just -- there was concern among Republicans he was -- that Roy Blunt was too close to Tom DeLay. They want a clean break. They want a fresh start. They're concerned that they may pay the price at the ballot box in November because of all these various Republican lobbying scandals and the like -- Kyra.
PHILLIPS: Now, Ed, we already heard from Roy Blunt. A couple of other Republicans came out. But what's the holdup? Why aren't we hearing from more? Why aren't they coming out sooner?
HENRY: Well, one thing they're doing right now is voting on the policy chair job, which is a much lower job. It's something that John Shadegg of Arizona had. He was in this majority leader race. He got the third highest total of votes on the first ballot, so he then dropped out. He is now vacating that policy chair post.
And there's been some controversy about that, because, unlike Shadegg, Roy Blunt decided not to give up the number-three job. And that may have hurt him in the majority leader race.
John Boehner and others were making a big deal about the fact that, if Roy Blunt felt he really had the votes locked up, why would he not give up the number-three job? Maybe he realized he needed to hedge his bets.
Interesting. You know, John Boehner, we're waiting for him -- him to come to the cameras. He's also expected to be on "THE SITUATION ROOM" with Wolf Blitzer today. So, we will get to hear him.
He's going to want to immediately get out there, get the Republican message out, and show that he is ready to step up.
This is, as Dana Bash noted earlier, a very big job, not just internally here on the Hill, but for the president -- a lot of Republicans nervous not just about the midterm elections, but that the president's legislative agenda, his program up here, went off track in 2005. They got to get it back on track, in their estimation.
And Tom DeLay is somebody who got a lot of legislative victories for the president. They need somebody else to step up now -- Kyra.
PHILLIPS: All right, Ed, keep us posted. We are seeing a little action there, some folks coming out of the room.
Let us know when we can go to that live.
Ed Henry on...
HENRY: Thank you.
PHILLIPS: ... Capitol Hill, thank you so much.
Now Tom DeLay's European investigation under investigation -- the Texas DA who is prosecuting the former House majority leader is demanding details of a trip DeLay took six years ago with disgraced former lobbyist Jack Abramoff, the latter at the center of a nasty scandal over influence-peddling.
For their part, Democrats are demanding the appointment of a special prosecutor.
(BEGIN VIDEO CLIP)
SEN. HARRY REID (D-NV), MINORITY LEADER: Americans deserve the truth about the Jack Abramoff scandal. We know for a fact that the Republicans have not and will not police themselves.
(END VIDEO CLIP)
PHILLIPS: Also speaking, New York senator Charles Schumer, suggesting what we know about Abramoff's activities so far may be the tip of the iceberg.
Now eye on Iran, specifically a dim view of Iran's contentious nuclear program by the U.N.'s nuclear watchdog group, but no referral yet to the Security Council. Should that happen -- and it might tomorrow -- Iran vows to ramp up its uranium enrichment.
CNN's Richard Roth is following events from New York.
Richard, what happened in Austria?
RICHARD ROTH, CNN SENIOR U.N. CORRESPONDENT: Well, in Vienna, they're going to -- they agreed to talk again on Friday.
Some people thought there might be a decision today, but not so. They're concerned about Iran's threat to continue nuclear enrichment, if the matter is referred to the Security Council. And they're trying to get as strong a unified base of support of countries behind a resolution that is targeting Iran.
That's what these people are discussing in that room. They are going to resume on Friday. This is all a bid led by the E.U.-3, three powerful European countries, Germany, France and Britain, who have had enough with Iran, saying that they have abrogated agreements to suspend nuclear research, despite economic incentives, and many countries, including Russia and China, think the matter should come to the Security Council for potential punitive action, but that may be down the road. China, Russia and others still want to leave room for negotiations.
PHILLIPS: So...
ROTH: Kyra.
PHILLIPS: ... when we talk about the Security Council, and you say punitive action, what exactly could that be?
ROTH: That could be trade sanctions, acid freezes, travel bans on Iranian leaders, though I would say that could be several months away, depending on Iran's actions.
Right now, everyone, including the U.S., says there's still time for diplomacy, though -- though the threat of having the Security Council hold the ball, so to speak, may carry more weight in Iran.
PHILLIPS: Has John Bolton made any comments?
ROTH: He's now the president of the Security Council for the month of February. But it looks like, according to the deal worked out with China and Russia, this issue wouldn't come up for grabs at the Security Council until March.
However, as he explained his style of working today, Bolton said he's very much into discipline. He was upset that he was the only one on time at 10:00 a.m. in New York today, while the 14 other council members straggled in.
He was very happy the other day when the matter seemed like it was coming to New York. He said, it's a good morning, pumping his fist, when -- upon hearing that countries had worked out an agreement to refer the matter to New York and the council.
PHILLIPS: Richard Roth, we will keep our eye on it. Thanks so much.
Saddam Hussein in absentia again. The former Iraqi dictator has refused to show up for the last two sessions of his crimes-against- humanity trial, presumably objecting to a new and stricter chief judge. With no end to the boycott in sight, the judge adjourned until February 13.
Hussein and seven co-defendants are being tried for alleged involvement in the killings of more than 140 Shiite men in 1982.
A chase -- or a cash crunch, rather, for Palestinians, one week after the stunning election triumph of Hamas, a group that has long been at war with Israel, the Palestinian Authority, finds it can't pay its workers. Israel has frozen tax revenues and other funds it collects on the Palestinians' behalf, and the U.S. and European Union are threatening to withhold funds as well.
There's a chance the Authority's 140,000 workers could get their paychecks next week, if Arab countries come through with help.
Brace yourself. Your computer could be in for a shock to its system. What's being called the Kama Sutra worm is set to go off tomorrow, its target, some of the most commonly used documents at work and at home.
Technology correspondent Daniel Sieberg tracks the risk.
(BEGIN VIDEOTAPE) DANIEL SIEBERG, CNN TECHNOLOGY CORRESPONDENT (voice-over): It's the oldest trick on the screen. Just promise sex, sexy pictures or schoolgirl fantasies gone bad and watch the mouse clicks all over the globe.
MERRICK FURST, GEORGIA TECH COLLEGE OF COMPUTING: There are a lot of people who are going to be very unhappy on the 3rd of February. This virus will wipe out all their word process documents, all their pictures, all of their work sheets.
SIEBERG: Computer security companies like Internet Security Systems reports the Kama Sutra worm has been spreading since January 16th in e-mails with subject line like hot movie, crazy illegal sex, and give me a kiss. But when users click the attachments on those e- mails, they didn't get any dirty pictures.
They did, unknowingly, infected their computers. The malicious code boroughs deep within the Windows operating system and on Friday the worm goes to work. It will overwrite and corrupt spreadsheets, family pictures and financial statements. Just about everything. The good news, there's still time to fix things.
ALAIN SERGILE, INTERNET SECURITY SYSTEMS: From a security standpoint, users should definitely have some type of anti-virus software on there. They should some type of intrusion prevention, which basically protects them from worms, self-propagating worms, which anti-virus can't protect you against. And there are some free applications out there as well that allow to you scan your computer for spyware, for zombie-type of softwares that -- that have been installed on machines.
SIEBERG: And as an important form of insurance, now is a very good time to back up your most valuable computer files on a CD or a DVD.
(END VIDEOTAPE)
PHILLIPS: Daniel Sieberg joining us now live. Let's talk about the clues that your e-mail may be infected. How do we know?
SIEBERG: Well, Kyra, this particular worm has a differing subject line almost every time you get it.
We have some examples of what you might see coming in to your in- box. As you can imagine, with a name like the Kama Sutra worm, the subject lines are fairly sexual in nature. Some of them, we can't mention on TV.
PHILLIPS: Fairly sexual?
SIEBERG: Yes, fairly.
(LAUGHTER)
PHILLIPS: Come on.
(LAUGHTER)
SIEBERG: We can say "Crazy, Illegal Sex" on TV. That's about it.
(LAUGHTER)
SIEBERG: We have a few more examples we can show people of what it might be. "Give Me A Kiss." "Miss Lebanon 2006." I don't know where they get it. You have got to give them some points for credibility, I suppose -- for creativity, I should say.
"Schoolgirl Fantasies Gone Bad" and "The Best Video Clip Ever." You -- you can see the theme here -- Kyra.
PHILLIPS: All right. So, what can we do to protect ourselves, besides not opening up the following?
(LAUGHTER)
SIEBERG: Right.
Well, first of all, this does affect virtually every operating system. For Window users that are out there, we're talking about Windows 98, 2000, Millennium Edition, and XP. Mac users, I know you're saying, Aha, it doesn't affect us.
But, if you do have a P.C. and you're worried about getting this on your computer, there are some things you can do. It has been spreading, as we mentioned, since January 16. So, you may have it on your computer and not even be aware that it's there. Don't open those unexpected e-mail attachments.
It could look like it's coming from someone you know. Keep your anti-virus and anti-spyware software up to date. You're going to want to go out there. Remember, this deadline, tonight, basically at midnight -- the third of every month is when it is going to wipe out this data on your computer, essential writing over it.
So, it's not going to be easy to recover, if at all. So, you are going to want get out and get the latest anti-virus software.
And, Kyra, guess what? Don't fall for those sexy subject lines, you know? I -- I -- it's hard to believe that these virus writers could be so unscrupulous as to promise something and then not deliver, but it's true. It's the classic bait and switch.
PHILLIPS: So...
SIEBERG: So...
PHILLIPS: So, don't -- don't open up any e-mails that say "Daniel Sieberg Is a Sex God"? Don't open those up?
SIEBERG: I would -- I would be amazed if there was such an e- mail.
(LAUGHTER)
SIEBERG: But, yes, just be careful of anything that promises something, and especially sexual in nature. The -- it's the oldest trick in the book. It really is. These types of worms and viruses have been around for a long time.
PHILLIPS: All right, Daniel, we will be paying attention. Thanks so much.
SIEBERG: All right.
(CROSSTALK)
PHILLIPS: On a much more serious note, we're talking about a hate crime suspect now still on the loose, more than 14 hours after a rampage in a Massachusetts nightspot.
Today, police searched the home of 18-year-old Jason Robida, where they say they found Nazi paraphernalia anti-Semitic writings. Last night's attacks were in a gay bar in the town of New Bedford.
CNN's Deborah Feyerick brings us this report.
(BEGIN VIDEOTAPE)
DEBORAH FEYERICK, CNN CORRESPONDENT: There's an all-out manhunt under way for 18-year-old Jason Robida.
A captain here at the New Bedford Police Department says he's extremely violent and should be considered armed and dangerous. He has been on the run since just after midnight.
According to a bartender who was there, he says the 18-year-old came in, sat down, and asked him, is this a gay bar? Well, something about his Robida's tone of voice and demeanor made the bartender suspicious, so he asked for identification and then served him two drinks.
Well, after a couple minutes, Robida walked to a pool table in the back of the bar and then took out a hatchet and began hitting two people who were playing pool. Patrons thought a fight had broken out. They tried to break it up. The hatchet went flying. Robida pulled out a gun. And that's when he shot the two folks playing pool, as well as another man who had just exited the bathroom.
The bartender says it was a bloodbath.
PHILLIP, PUZZLES LOUNGE BARTENDER: He pulls out a handgun from out of his pocket, fires one shot directly up in the air, which got everybody's attention. And we all moved away. And he gets up and proceeds to shoot the first person that he attacked with a hatchet in the face, then turns to the second person that he attacked with a hatchet and shot him twice in the head.
At the same time, there was a customer coming from out of the bathroom, which is also in the back of the bar, behind the pool table, and he turned the gun on him, fires one shot at him, which went into his abdomen, in one end, out the other.
FEYERICK: The three victims are all in critical condition. They were airlifted to a Boston hospital.
The names of the victims, Robert Perry, Alex Taylor,and Luis Rosado -- it appears that Mr. Rosado and Mr. Robida Robert both lived on the same street here in New Bedford.
Now, a neighbor at Robida's home says that he would only go out at night and that, in her words, he hated everyone.
Now, at the time of the shooting, he was wearing dark black jeans with patches on them, along with a black hooded sweatshirt. Police say he's driving a 1999 green Pontiac Grand Am. And, right now, they have launched an all-out search to try to get him, again, warning everybody that he is extremely violent. He may have been injured in the attack.
So, he might seek medical help. And there is a potential that he is suicidal.
Deborah Feyerick, CNN, New Bedford, Massachusetts.
(END VIDEOTAPE)
PHILLIPS: Still to come from LIVE FROM -- drawing up a storm. Editorial cartoons, they are not always funny. Sometimes, they are pretty downright nasty. Muslims abroad have had enough -- the unfunny papers when LIVE FROM continues.
(COMMERCIAL BREAK)
PHILLIPS: Straight to Dennis Hastert.
Of course, you can see John Boehner, the new House majority leader. Let's listen in as they come out of a closed session.
(JOINED IN PROGRESS)
REP. DENNIS HASTERT (R-IL), SPEAKER OF THE HOUSE: ... talking about -- our members -- about a new vision about this party and the direction we're going to go.
I want to congratulate both John Boehner and Adam Putnam and new members of the leadership. The leadership's going to go back to work. We will be back at work tomorrow at 10:00 tomorrow morning.
We're going to look at the issues of health care, the issues of energy, the issues of -- of keeping our tax rates low for the American workers -- and we have a lot of work to do.
And at this time, then, I would like to introduce the new conference majority leader, John Boehner.
(APPLAUSE)
REP. JOHN A. BOEHNER (R-OH), HOUSE MAJORITY LEADER: Mr. Speaker, thank you.
Ladies and gentlemen, thanks for coming out today.
I'm humbled by the support of my colleagues to be the new majority leader for Republicans in the House. We ran a -- a good race.
Come over here, Roy.
It's been a well -- it's been a well-fought race. And I think our members wanted to make -- wanted, obviously, to make a big decision, and they did.
And I would just say this. We came here to do our work on behalf of the American people. I -- I have -- never came here because I wanted to be a congressman. I came here to help solve the problems that the American people face every day.
And I think what you're going to see us do is rededicate ourselves to dealing with issues, big issues, that the American people expect us to deal with, in terms of trying to improve their incomes, their prospects for jobs, and to provide better security for Americans all over this country.
And with that, I'm going to introduce our whip and my friend, Roy Blunt.
REP. ROY BLUNT (R-MS), HOUSE MAJORITY WHIP: Thank you, John.
(APPLAUSE)
BLUNT: Thank you, John.
PHILLIPS: Let's bring in Ed Henry there on the Hill.
Ed, Dennis Hastert coming straight out, saying, here, this is the new vision for this party, this -- the vote that took place, announcing the new majority leader for all the Republicans in the House, already hitting on some issues, health care, energy, keeping tax rates low. They got a lot to do.
But we also want to hear about ethics, too, don't we?
HENRY: Absolutely.
And John Boehner wants to hit the ground -- ground running on all those issues. He's had a lot of pent-up demand. As you know, he was a leader coming out of the 1994 Republican revolution. He was in a lower post, and then got bounced out after the '98 elections.
He has been plotting this comeback for years. And, so, he's ready to hit the ground running. But Democrats are already charging, look, this is not an end to status quo. Even though Roy Blunt got rejected as majority leader, as you see right there, he's still in the picture. He's staying on as the number three, as the Republican whip. And they're basically saying, you know, he was a DeLay protege. Roy Blunt is still going to be around. John Boehner is somebody who has previously been in the leadership. He is back now. He's also someone, John Boehner, who you're going to hear a lot about his relationship with lobbyists.
He's somebody who has worked a lot with the lobbyists in town. That is going to be a source of controversy. He points out, though, that he hasn't been in the sort of ethical hot water that we have seen Tom DeLay and others get into.
But this is a Republican Party that's very nervous about the midterm elections coming up in November. They were concerned that Roy Blunt was too close to Tom DeLay. They feel this is a clean break, but you are going to hear the Democrats saying, it's really not a reformer now taking over. It's somebody who has already been kind of in the top ranks of the Republican Party already -- Kyra.
PHILLIPS: And it seems like Boehner and Blunt both have a lot of respect for each other.
Ed Henry there on the Hill -- thanks, Ed.
Well, we want to move on a lot to talk about cartoons today, but nobody is laughing. What began as a free speech debate has ignited a religious and cultural powder keg in Europe and the Middle East.
More from London and CNN's Robin Oakley.
(BEGIN VIDEOTAPE)
ROBIN OAKLEY, CNN EUROPEAN POLITICAL EDITOR (voice over): Palestinian gunmen Thursday surrounded the European Union offices in Gaza, firing weapons and demanding an apology for cartoons of the Prophet Muhammad, which have appeared in European newspapers.
UNIDENTIFIED MALE (through translator): We call on the governments of Denmark, France and Norway to apologize officially. Otherwise, demonstrations will be held, and we will shell the headquarters of the E.U. and all European nations in Gaza.
OAKLEY: Islamists have been outraged by the caricatures, including one showing the prophet with a turban shaped like a bomb, which first appeared last September in a Danish newspaper and which has been shown in pixelated form on the Arab TV station Al-Jazeera.
Islam forbids any representation of the prophet. CNN, too, has pixelated the pictures, so as not to offend viewers.
Protest marchers have been burning the Danish flag. Some Arab nations have closed their Copenhagen embassies. And Danish goods from companies like dairy giant Arla have been boycotted in countries like Saudi Arabia.
FINN S. HANSEN, MANAGING EDITOR, ARLA: In five days, a wave -- no, a tsunami of consumer reaction has totally brought our business to a standstill.
OAKLEY: The French newspaper "France Soir" reprinted the cartoons Wednesday.
UNIDENTIFIED MALE (through translator): We wanted to reaffirm a fundamental principle, the freedom of expression. We can't accept that a religious dogma, whatever it is, forbids illustrators to draw freely.
OAKLEY: But with the political dimension of the row escalating, that decision brought the sacking of the paper's managing editor. And French Muslims plan legal action.
DALIL BOUBAKEUR, MUSLIM COUNCIL HEAD (through translator): You don't have the right to say that Prophet Mohammed, a prophet that we venerate every minute of every day, is someone who founded a terrorist religion.
OAKLEY: European nations are now seeking to cool the fury without sacrificing their societies' basic principles.
ANDERS FOGH RASMUSSEN, DANISH PRIME MINISTER: The Danish government condemns any expression, action or indication that attempts to demonize groups of people on the basis of their religion or ethnic backgrounds. It is the sort of thing that does not belong in a society that is based on respect for the individual human being.
OAKLEY (on camera): Cartoons may seem trivial, but this has become a fundamental clash between deeply-held religious convictions and equally passionate commitments to the Western traditions of free speech. Diplomats concede, things are likely to get worse before they get better.
Robin Oakley, CNN, London.
(END VIDEOTAPE)
PHILLIPS: A common controversy in this country, too -- check out Dr. Rumsfeld at the bedside of a very badly wounded soldier, no arms, no legs. The doctor says, "I'm listing your condition as battle- hardened."
The artist is Pulitzer Prize-winning Tom Toles of "The Washington Post." Toles says that he was inspired by the defense secretary's comments on the state of the heavily deployed military and meant no offense to the soldiers. Pentagon brass, not amused -- a letter to "The Post," signed by the entire joint staff, describes the drawing as beyond tasteless. The real Donald Rumsfeld had some thoughts about the issue today, too.
(BEGIN VIDEO CLIP)
DONALD RUMSFELD, SECRETARY OF DEFENSE: You know, no one questions of right of a cartoonist to do what they want to do. And people do it all the time. They have been doing it for decades.
(END VIDEO CLIP)
PHILLIPS: Well, it was supposed to open next week, but don't look for "Memoirs of a Geisha" in China. No official reason, but there were plenty of thumbs down over Chinese actresses playing Japanese geishas, amid lingering bad feelings over wartime aggression by Japan.
The movie won't go unseen in the People's Republic. Plenty of pirated DVDs hit the streets just weeks ago.
It was just a yellow sheet of paper, but it could bring great joy or great sorrow. From now on, you will only be seeing it in the old movies -- coming up, a death announcement from Western Union.
You're watching LIVE FROM.
(COMMERCIAL BREAK)
PHILLIPS: Let's go straight to Fredricka Whitfield in the newsroom with a developing story -- Fred.
FREDRICKA WHITFIELD, CNN CORRESPONDENT: Well, this involves the case in South Florida over the three homeless men that were beat.
Well, now indictments have come down for the three teenagers who allegedly carried out the beatings involving sticks, baseball bats, as well as paint guns used. You're looking at videotape earlier. You're looking at videotape of two of the three men who were beating, the two survivors.
And now you're looking at the -- the young boys. They are identified as 18-year-old Rumsfeld Brian Hooks, 17-year-old Thomas Daugherty, and 18-year-old William Ammons, all charged as adults in those beatings of the three homeless people. They're charged with first-degree murder and attempted murder.
And you're looking at surveillance videotape that captured one of the beatings of one of the homeless men that actually survived. The three are also charged with killing 54-year -- 45 -- rather -- -year- old Norris Gaynor. He was one of the homeless men who was not able to survive the injuries carried out, allegedly, by these three teenagers.
So, again, three teens allegedly involved in these beatings have been charged with first-degree murder and attempted murder -- Kyra.
PHILLIPS: All right, Fred, thank you so much.
Well, can America compete and win in the global marketplace? The question got top billing in President Bush's State of the Union address and was one theme -- and one theme that he hammered home in Minnesota today.
Mr. Bush first toured, then spoke at the headquarters of the 3M company in Maplewood.
(BEGIN VIDEO CLIP) GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: There's some uncertainty in America today, and I can understand why, that there's uncertainty when it comes to our economy. People are beginning to see competitors emerge -- India and China.
I'm a fellow who likes competition. I think it's good to have competition. I think it makes us do things better.
(END VIDEO CLIP)
PHILLIPS: Well, this was the second stop in Mr. Bush's campaign to sell his State of the Union agenda. Yesterday, he was in Nashville. Tomorrow, it's Albuquerque and Dallas.
"What hath God wrought?" Those were the words Samuel Morse transmitted from Washington to Baltimore in 1844, essentially sending the very first telegram. The wording of the last telegram is not a matter of record.
For generations of Americans, the arrival of a Western Union courier was an important, often life-changing event. The flimsy yellow paper sometimes signaled good news, sometimes very bad news. Today, more bad news -- late last week, Western Union quietly ended its telegram service, which survived the invention of the telephone, but not the rise of the Internet and text-messaging.
While the telegraph keys -- telegraph keys have gone silent, Western Union remains in business, specializing in electronic money transfers.
Well, the economics of air travel is a mixed bag. United Airlines claws its way out of bankruptcy, but budget airline JetBlue seems headed in the wrong direction.
CNN's Ali Velshi joins us now with the latest.
Ali, what's going on?
ALI VELSHI, CNN CORRESPONDENT: Kyra, good to see you. It has been a long time since I have had a chance to talk to you about these sort of things.
JetBlue has reported its first quarterly loss since the airline went public in 2002. Now, you remember, we have been talking about airlines for a long time. And JetBlue, Southwest, those are the two that get held up as -- as great examples, budget airlines. They do a good job.
JetBlue's problems right now are the same as everyone else's, fuel costs. The other thing that is a bit of a problem for JetBlue right now is that, in late 2005, they took delivery of their first E- 190 planes. Now, this is an airline that -- that flew A-320s, Boeing -- Airbus A-320s.
And they had one kind of plane, one kind of mechanic, one kind of parts shop. Now they have got the Embraer Air E-190. That's a 100- seater plane. And that means they can fly different routes. In fact, they have just announced a few different routes, smaller routes, but it's more expensive, because you have to have different kinds of parts and different kinds of mechanics.
Now, over to United Airlines, which has been in bankruptcy for the last three years, emerged yesterday. The new stock of the company started trading today on the Nasdaq. It used to be a New York Stock Exchange stock. Now it's a Nasdaq stock, UAUA -- UAUA.
The stock is down today, but that's -- the -- you never really can judge by the first day. This is a company that has struggled through bankruptcy and has emerged. And, you know, it -- it's a tough -- it's a tough industry out there. Oil prices, gas prices that affect all of us, they affect the airlines, more labor costs. So, it's a wait-and-see to see how these airlines continue to do -- Kyra.
PHILLIPS: United Airlines -- we were talking about this yesterday -- you and I weren't talking about this, but...
VELSHI: You were talking to somebody else about business stuff?
(LAUGHTER)
PHILLIPS: Yes. I know. Can you believe that? I cheated on you. I'm sorry.
(LAUGHTER)
PHILLIPS: We were talking about...
VELSHI: A week I have been gone.
PHILLIPS: I know. We had to cover Enron, you know?
VELSHI: Yes.
PHILLIPS: Your friend Ken Lay.
United looked good. This news was good for a number of people, but not everybody.
VELSHI: Well, United's a bit of a -- a bit of a sad story, when you think about it, because, back in 1994, it was heralded as this -- this new way of doing things, when the employees of United became the majority owners in the company.
They took some cuts in their -- in their pay. And, in exchange, they were given stock in the company. And over the -- the ensuing few years, more and more employees got more and more stock in the company. And, then, when it went bankrupt -- you know, when you invest in a company that goes bankrupt, your stock goes to zero.
So, here are people who may have lost some of their pensions. They lost their pay. They may have lost their jobs. And they were invested in the company. So for a lot of those United workers who just over ten years ago were celebrating this new way of running the airline industry, I guess it's kind of sad, because the new stock that came out today if you were an old investor in United, you didn't get a piece of that.
PHILLIPS: Not good news. All right. We're going to talk more as we get closer to the closing bell.
VELSHI: Yes. See you in a half an hour.
PHILLIPS: Few people anywhere can say they're related to a president, but we know of two right here in Atlanta. They were guests of honor at a special swearing in just 17 days ago. Today they're here in our studio ready to share their adventures, when LIVE FROM continues.
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PHILLIPS: For safety's sake most, if not all, of West Virginia's mines are grinding to a halt and federal inspectors are urging mines all over the country to do the same thing. West Virginia's governor pleaded for the stand down and immediate inspections after two more mine workers were killed. Those accidents were among three in the same county yesterday.
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GOV. JOE MANCHIN, WEST VIRGINIA: I can confirm that we have had accidents at three separate coal mines -- two underground mines and one surface mine -- that have resulted in two deaths today.
As a result of these three incidents, all of which occurred within just the last few hours, I'm calling on the industry to cease production activities immediately and go into a mine-safety stand down.
(END VIDEO CLIP)
PHILLIPS: That means inspections of not just the mines, but all of the equipment. The miners get safety lectures.
Heroic, horrendous and everything in between -- Gulf Coast governors tell wide-eyed senators of the help they received in the aftermath of Hurricane Katrina. Louisiana's Kathleen Blanco and Mississippi's Haley Barbour both say that they're greatly appreciative of those efforts.
And Barbour noted that even some federal help was heroic. Other efforts he called far from perfect. Barbour also thinks that it's vitally important that one person and only one, should be in charge.
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GOV. HALEY BARBOUR (R), MISSISSIPPI: But this is the nature of the beast. And that's why when you ask what's the role of the governor, somebody's got to be in charge. And it can't be one person in charge. And the federal government can't be in charge in Mississippi, and they never were, and you mentioned Bill Carwile (ph), who was the federal coordinating officer. One of the good things about the unified command structure was he knew he reported to me.
(END VIDEO CLIP)
PHILLIPS: Now Barbour wants to use federal money to help uninsured home owners along Mississippi's coast.
Witnesses to history, our next guests had front-row seats when Africa's first elected female leader took the oath of office. The inauguration of Ellen Johnson-Sirleaf also their first trip to Liberia, but it was not their first visit with the woman now called Madam President.
To Jenelle and Berylene Sirleaf, she's simply grandma. They're back home here in Atlanta after an extraordinary two week trip. And I'm curious, when grandma or Madam President comes to visit, will there be a major entourage? Are you worried about that?
JENELLE SIRLEAF, GRANDDAUGHTER OF LIBERIAN PRES.: Not worried, but perhaps. All the U.N. guards, you know, they're always like constantly following her. So perhaps -- I don't know. Like we'll have them all around the house.
PHILLIPS: Do you think she'll come for the holidays?
J. SIRLEAF: I'm not sure if that's her ...
(CROSSTALK)
PHILLIPS: She has a lot of responsibilities to take care of right? She's got to run Liberia, really.
(CROSSTALK)
BERYLENE SIRLEAF, GRANDDAUGHTER OF LIBERIAN PRES.: But hopefully, maybe.
PHILLIPS: Well, you both went. This is your first trip to Liberia. Your mom actually lived in this area during the civil war. Did she ever talk to you about what life was like there and how happy she is to be in the United States, Jenelle?
J. SIRLEAF: All the time.
B. SIRLEAF: All the time.
J. SIRLEAF: She talked about it all the time. We grew up hearing stories about Liberia and, you know, some of the things that they went through. And, yes, so we kind of feel for the people there and, you know, the fact that she lived in America and stayed away from it, you know, kind of happy about that. But I think everyone plans to return there one day when things get better. PHILLIPS: So I'm assuming she probably said to you, Berylene, that she just wanted a good life for you girls and wanted it to be different?
B. SIRLEAF: Oh, definitely. You know, she wanted Liberia to change as well as the people.
PHILLIPS: So now, grandma is president. I mean, is this just -- let's talk about the inauguration and what it was like. We're going to look at some pictures. I know you guys were snapping photos like crazy. Tell what was the most exciting moment for you, Jenelle?
J. SIRLEAF: For the inauguration, probably when they introduced Laura Bush and her daughter and Condoleezza Rice as they walked up there. I think the whole -- like everybody there was really excited about it as they walked up. And they congratulated my grandmother. I think that was the most exciting part of the inauguration.
PHILLIPS: How about you, Berylene?
B. SIRLEAF: I think it was right when they mentioned the South African president, I was jumping for joy. I'm like, oh my God.
PHILLIPS: Just hearing your grandma's name?
B. SIRLEAF: Yes, it was amazing.
PHILLIPS: Or you're talking about, when they said her name? When they announced her name. That's when it really hit you?
B. SIRLEAF: Oh, yes. It's like first you think about it, and you know, it didn't seem that real, but then once you were there, like reality just hit you right in the face.
PHILLIPS: Now your grandma has been called the "iron lady." Do you agree with that?
J. SIRLEAF: In some ways, yes, because she kind of plays the card of, you know, this sweet grandma, but she can also be, you know, a tough politician. So, yes, I think the name suits her.
PHILLIPS: Do you -- have you ever been having a conversation with her and she just says something very political and you thought, oh wow, grandma really does know what she's talking about?
J. SIRLEAF: Yes, we've overheard, you know, interviews or discussions that she's had.
PHILLIPS: What sticks out in your mind?
J. SIRLEAF: Well, I know that, like when we went for the inauguration, she had interviews all the time, or sometimes when we see them on the Internet, you know, you're like this is the same grandmother I have conversations with. You know, it's kind of different. PHILLIPS: What about you, Berylene? Is there something that she's talked about, whether it's rights for women or human rights that really sticks in your mind that she always -- you know, issues that were very important to her?
B. SIRLEAF: I think it was mostly education and rebuilding the city that really hit home.
PHILLIPS: Wow, so there's a sensitive side to grandma here, she's not just this tough iron lady?
B. SIRLEAF: Yes.
J. SIRLEAF: Yes.
B. SIRLEAF: She has to be tough, though. It's a hard job, and it's going to take a lot of work for many years.
PHILLIPS: Has she said to either one, look, you can do anything you want. It doesn't matter that you're female, you can set your sights high, because look at me. I'm running Liberia now.
J. SIRLEAF: Yes, that is exactly the feeling that we get from her. She's always taught us that -- and we've always felt that, you know, being around her -- and learned that, you know, we can accomplish whatever we want to, despite, you know, whatever obstacles, that through education we can accomplish whatever we want.
PHILLIPS: Is she influencing either one of you to go into politics? I know you used to follow her around when she was working at the U.N. So what do you think?
J. SIRLEAF: Possibly. I never really considered politics but I don't know. I don't know what the future might have, so yes, maybe.
PHILLIPS: Berylene?
B. SIRLEAF: Well, maybe. I'm not sure yet, but I'm getting into it, you know, the more she talks about and how, like, the economy and building -- the more I'm thinking of getting into it.
PHILLIPS: So what's it like at school? Does everyone just think the two of you are just amazing?
B. SIRLEAF: Everyone's ecstatic about it.
J. SIRLEAF: Yes, everybody's been calling us local celebrities...
B. SIRLEAF: They're like, oh my Gosh.
J. SIRLEAF: And, you know, we've been in the school newspaper, so it's really exciting.
PHILLIPS: Well let me ask you both this. What -- this is sort of our final thought -- Berylene, I'll start with you. What you think your grandmother will be able do for the people of Liberia, specifically women and children?
B. SIRLEAF: Oh, that's a really good question. I think she'll be able to make equal rights for women and have more education, like I said, for children. Like, I think 47 percent of the people there are illiterate. So that's a big problem that she's trying to work on right now.
PHILLIPS: Jenelle, what's your grandmother/Madam President going to be able to do for Liberia?
J. SIRLEAF: Like Berylene said, I think she's going to be able to rejuvenate the country to what it used to be before the war and to help, you know, with education and major reconstruction. So, you know, we're all hopeful.
PHILLIPS: Well, you never know. Maybe the two of you will be her personal aides.
J. SIRLEAF: Maybe.
PHILLIPS: There you go. Set your sights high, she sure did. Thanks for your time today.
J. SIRLEAF: Thank you.
B. SIRLEAF: Thank you.
PHILLIPS: It was a pleasure.
Well, straight ahead, his life story could fill a book. In fact, it has filled a book. We're going to honor a legend who showed the world how fun 100 years of living could be. LIVE FROM dreams big, straight ahead.
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PHILLIPS: Pushing their way over 600 miles of frozen wilderness, on February 2nd, 1925, dogsled teams rushed precious cargo to isolated Nome, Alaska. A deadly outbreak of diphtheria threatened the lives of Nome's children, including 11-month old Jerdis Winter Baxter (ph), seen here at age 81. Well, she's the last survivor of that epidemic. Baxter rode a dogsled for the first time in last year's Iditarod, the famous race this historic event inspired.
Which brings us to our next story. Just before Christmas, the world lost a truly inspiring character, a man who lived every minute of his 100 years to the absolute fullest. Today, LIVE FROM remembers the sleddog driver some called the energizer bunny of exploration.
(BEGIN VIDEOTAPE)
PHILLIPS (voice-over): Dream big and dare to fail. That phrase was the guiding principle of Norman Vaughan's life. Parlaying his love of dogsledding into an unlikely career, Vaughan left Harvard to become the youngest member of Admiral Byrd's 1928 South Pole expedition. NORMAN VAUGHAN, DOGSLED DRIVER: I think I remember everything about it. When we arrived, we had the job of setting up little America, and I was lucky enough to be asked by Admiral Byrd to harness my dog team -- he did this ten minutes after we arrived on the ice -- harness to my dog team. And he asked if I would take him back into the interior so he could pick out a site for camp.
PHILLIPS: As Byrd's chief dog driver, he gained a place in history and on the map. Antarctica's Mt. Vaughan is named for Norman.
Never shy about taking his sled team into the spotlight, Vaughan showed off his skills in demonstration race in the 1932 Winter Olympics at Lake Placid. He claims he taught Pope John Paul II how to mush and crashed President Carter's inaugural in 1977 with his sled dogs.
But his life wasn't all fun and games. During World War II, Colonel Vaughan initiated the rescue by dogsled team of 26 airmen stranded on the Greenland ice sheet. Later, Vaughan made a secret solo expedition back to the crash site to recover some top-secret equipment. In a bold move, he later convinced military brass to use dogsled teams to evacuate soldiers wounded in the Battle of the Bulge.
These exploits are all chronicled in "My Life of Adventure," his 1995 autobiography. One adventure that shaped his golden years -- Vaughan moved to Alaska at age 68. Broke and alone after a business failure and divorce, he shoveled sidewalks and worked as a janitor while building a new dog team.
Vaughan ran his first Iditarod at an age when most people retire out to pasture, 72, eventually, completing six of the grueling races. In 1994, just days before his 89th birthday, Vaughan and a large support team that included his wife Carolyn climbed Antarctica's Mt. Vaughan, all 10,302 feet of it.
VAUGHAN: And I love Antarctica, and I want to go back and see it once again. I've waited too long. If I waited much longer, I wouldn't be able to go.
PHILLIPS: He once again made headlines, inspiring people everywhere with his guts and charisma. His trusty motto still in mind, Vaughan continued to dream big, planning to climb Mt. Vaughan again on his 100th birthday, December 19th, 2005. But it was not to be.
Failing health made it impossible for him to attend his own 100th birthday party. Instead, video teleconferencing allowed him to share the milestone with family and friends around the country. That night, he sipped his first-ever glass of champagne. It was also his last.
Four days after the party, Colonel Norman Vaughan died peacefully, having dreamed and dared for 100 amazing years.
(END VIDEOTAPE)
PHILLIPS: A memorial service is planned for the start of this year's Iditarod. Norman Vaughan's family will sprinkle his ashes over some of his favorite places, including, of course, the North and South Poles.
Straight ahead, a nasty crash. The threat of flames, danger, brought Chris and Brother Love together. It's a good samaritan story that will give you a bit of a lift. LIVE FROM is kinder and gentler, straight ahead.
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PHILLIPS: An out-of-control van smashes into a house, the disabled driver needs help. One man faces down fear to lend a hand. They don't call them brother love for nothing. Tess Rafols of our affiliate KTVK in Phoenix has the story.
(BEGIN VIDEOTAPE)
CHRIS LEUBKE, DRIVER: I thought I was going to burn.
TESS RAFOLS, KTVK CORRESPONDENT (voice-over): Chris Leubke was trapped inside this van. He's never had a trouble driving his retrofitted van like he did today. But his motorized wheelchair somehow came off the floor locks.
LEUBKE: I drive with this arm hook, and when the chair moved back, pulled the accelerator back.
RAFOLS: The van sped out of the control, Chris sideswipes this green Hyundai, then crashed into the back of this home. He also hit a gas line.
UNIDENTIFIED MALE: I've never seen anything like this with the gas escaping and, you know, the engine running.
LEUBKE: Thank God for him.
RAFOLS: Folks who came to his rescue, even with the threat of a gas leak and a possible explosion, is what Chris is so thankful for. Good samaritans likes this man, who calls himself "Brother Love."
LEUBKE: Pretty special guy, I didn't even see where he was along the road or anything. He just came out of nowhere.
UNIDENTIFIED MALE: With the motor running and the gas escaping, I don't see why it didn't blow, but God had an hand in it. We managed to get him out, and everybody came out in good shape.
RAFOLS: Not only did "Brother Love" help get Chris get out, he took care of him, cleaning the cuts on Chris's hand and he stayed with him until he knew he'd be OK. Two strangers are friends and once again compassion prevails.
(END VIDEOTAPE)
PHILLIPS: Time to check in with CNN's Wolf Blitzer standing by in Washington to tell us what's coming up at the top of the hour in THE SITUATION ROOM. Hey, Wolf.
WOLF BLITZER, CNN ANCHOR: Thanks very much, Kyra. Ahead in THE SITUATION ROOM, the House Republicans. They joined forces to pick a new leader to replace Tom DeLay. Is John Boehner the key to keeping the majority control of Congress? We have more on those drug- smuggling puppies we first showed you here in THE SITUATION ROOM yesterday. Today we explore how widespread this problem is.
And pulling out the big guns for the biggest football game of the year. We're live in this year's Super Bowl city with a CNN "Security Watch Report." All of that coming up, Kyra, right at the top of the hour.
PHILLIPS: Thanks, Wolf.
Fresh from the Global Solutions Department, no less than 42 tons of dog food on the way to Kenya to feed starving children. Looks yummy too. It's the brainchild of this New Zealand entrepreneur. Christine Drummond says that she's modified the Mighty Mix meal for human consumption. Clearly she enjoys it herself.
CHRISTINE DRUMMOND, MIGHTY MIX FOUNDER: I sprinkle it on my porridge and also my lunch or tea, and it just gives me that pickup.
PHILLIPS: A pickup or no pickup, critics are concerned the doggy diets may prove too much for stressed children's digestive systems.
How about a warm grilled-cheese sandwich? Grilled toasty perfection? Are you hungry yet? You won't be after watching our video of the day. LIVE FROM, back after a quick break.
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PHILLIPS: Just in time for lunch in some parts of the nation. Consider this a diet aid. Competitive eaters converge on Times Square to see who can wolf down the most grilled-cheese sandwiches. The winner is hour 26, yes 26 in 10 minutes. Cheese-chomping champ Sonya "The Black Widow" Thomas has this advice for aspiring eaters.
(BEGIN VIDEO CLIP)
SONYA THOMAS, EATING CHAMPION: If you eat thick soup, like thick soup, you swallow, same thing, I eat like that, use a lot of water.
(END VIDEO CLIP)
PHILLIPS: OK, that's gross. But not so gross. The Black Widow pockets eight grand for this. It's just one of her many victories on the competitive eating circuit. Ali Velshi, I interviewed her like two years, and you know?
VELSHI: Sonya the "black widow."
PHILLIPS: Yes, "black widow." She told me she runs like 15 miles a day, OK, so she didn't get big. And then I asked her when she goes on dates, what's it like to have dinner? She said she always suggests the buffet.
VELSHI: You know, I'm always nervous about these things, because when you go out with someone, you don't want to be eating too much more than them. I imagine she gets a lot of dates.
PHILLIPS: You know what? Why don't you ask her out? See what happens.
VELSHI: I'll have another one of those, too, bring two.
PHILLIPS: Las Vegas and the big buffet.
VELSHI: You're just trying to distract me because you know that I'm mad that you were talking business with someone else while I was gone.
PHILLIPS: Oh man, you hold a grudge. You love grilled cheese sandwiches though, don't you have a few favorites?
VELSHI: No, I do. I used to have white bread, now I have it on wheat because that's supposed to be healthier. And I used to have cheddar cheese, now I have it with Swiss.
PHILLIPS: Ooh, do you throw a little, something else in there, or no?
VELSHI: Yes, it depends on the mood.
PHILLIPS: All right.
VELSHI: I'm not talking to you about food right now.
PHILLIPS: All right, we've got to talk about the closing bell. OK, maybe we can kiss and make up. I'm being told we've got to go.
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