FAA grounds Dreamliners in U.S.

Federal officials say they are temporarily grounding Boeing's 787 Dreamliners until the risk of possible battery fires is addressed. (Jan. 16)









With its new plane ordered to stay on the ground, Boeing Co. confronts a full-fledged crisis as it struggles to regain the confidence of passengers and the airline customers who stood by the 787 Dreamliner during years of cost overruns and delivery delays.


A second major incident involving "a potential battery fire risk'' prompted the Federal Aviation Administration on Wednesday to temporarily ground all 787s operated by U.S. carriers until it is determined that the lithium-ion batteries on board are safe.


The order affects United Airlines, which is the first U.S. customer. The FAA gave no indication how soon the plane could resume flying.








The decision came the same day Japanese airlines grounded their 787s after an emergency landing and five days after the FAA and U.S. Transportation Secretary Ray LaHood declared that the flying public is safe on Dreamliners. When it offered those assurances Friday, however, the FAA also announced a comprehensive review of the 787's design, manufacture and assembly.


The grounding represents a significant setback for Chicago-based Boeing, which is marketing the fuel-efficient, mainly carbon-composite jetliner as a vision of the future of commercial passenger aviation. The development of the plane was marred by long production and delivery delays, but it is selling well and has customers around the world.


"We stand behind its overall integrity. We will be taking every necessary step in the coming days to assure our customers and the traveling public of the 787's safety and to return the airplanes to service," Jim McNerney, Boeing's chairman and chief executive, said in a statement. He said Boeing is working with the FAA to find answers as quickly as possible.


Chicago-based United Airlines has six 787s, but it has been flying only one on flights between O'Hare International Airport and Houston. The airline said Wednesday night that it will accommodate customers on other planes. The domestic 787 flights were to end in late March, when United's first 787s were to begin serving international routes. 


United said it "will work closely with the FAA and Boeing on the technical review as we work toward restoring 787 service."


Foreign carriers are not affected by the FAA order, but LOT Polish Airlines canceled its inaugural flight celebration at O'Hare on Wednesday night, even before the flight landed from Warsaw.


"We just think it would be inappropriate to go ahead with the activities," said Frank Joost, regional sales director of the Americas for LOT. He described the FAA grounding of 787 flights as a "surprise."


LOT also canceled the Dreamliner's return flight to Warsaw. Passengers hoping to depart on the 9:55 p.m. flight said they were disappointed. Many were rebooked on Lufthansa through Munich.


The FAA decision to ground all U.S.-registered 787s was the direct result of an in-flight incident involving a battery earlier in the day in Japan, FAA officials said. It followed another 787 battery fire that occurred Jan. 7 on the ground in Boston.


Both failures resulted in the release of flammable materials, heat damage, smoke and the potential for fire in the electrical compartments, the FAA said.


"Before further flight, operators of U.S.-registered Boeing 787 aircraft must demonstrate to the FAA that the batteries are safe," the regulatory agency said. The statement said the FAA will work with Boeing and airlines "to develop a corrective action plan to allow the U.S. 787 fleet to resume operations as quickly and safely as possible."


The FAA said it took drastic action because it determined that battery failures are "likely to exist or develop" in other planes.


Lithium-ion batteries can catch fire if they are overcharged, and the fires are difficult to extinguish, Boeing has previously said. Still, lithium-ion is the right choice for the 787, Boeing officials said.


Earlier Wednesday, Japan's two largest airlines grounded their fleets of 787s after one of the jets made an emergency landing and passengers were evacuated via emergency slides.


All Nippon Airways said instruments aboard a domestic flight Wednesday indicated a battery error, triggering emergency warnings to the pilots. A second warning light indicated smoke, said Shigeru Takano, a senior safety official at Japan's Civil Aviation Bureau.


Wednesday's incident was described by a Japanese transport ministry official as "highly serious," language used in international safety circles as indicating there could have been an accident.


ANA said the battery in the forward cargo hold was the same lithium-ion type as one involved in a fire on another Dreamliner operated by Japan Airlines in Boston last week. ANA grounded all 17 of its 787s, and Japan Airlines suspended its 787 flights scheduled for Wednesday and Thursday.





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ANA grounds Boeing 787s after emergency landing










TOKYO (Reuters) - Japan's two leading airlines grounded their fleets of Boeing 787s on Wednesday after one of the Dreamliner passenger jets made an emergency landing, heightening safety concerns over a plane many see as the future of commercial aviation.

All Nippon Airways Co said it was grounding all 17 of its 787s and Japan Airlines Co said it was suspending all flights scheduled for departure on Wednesday. The two carriers operate around half of the 50 Dreamliners delivered by Boeing to date.






"I think you're nearing the tipping point where they need to regard this as a serious crisis," said Richard Aboulafia, a senior analyst with the Teal Group in Fairfax, Virginia. "This is going to change people's perception of the aircraft if they don't act quickly."

ANA said instruments on domestic flight 692 to Haneda Airport near Tokyo from Yamaguchi in western Japan indicated a battery error, triggering emergency warnings to the pilots. The carrier said the battery was the same type as one that caused a fire on another Dreamliner at a U.S. airport last week.

All 129 passengers and eight crew were evacuated safely via the plane's inflatable chutes. At a news conference, ANA said a smell was detected in the cockpit and the cabin, and pilots received emergency warning of smoke in the forward electronic compartment.

The incident follows a series of mishaps for the new Dreamliner. The sophisticated plane, the world's first mainly carbon-composite airliner, has suffered fuel leaks, a battery fire, wiring problem, brake computer glitch and cracked cockpit window in recent days alone.

SMOKE ON BOARD

Flight 692 left Yamaguchi Airport shortly after 8 a.m. local time (6:00 p.m. EST Tuesday), but made an emergency landing in Takamatsu at 8:45 a.m. after smoke appeared in the cockpit, an Osaka airport authority spokesman said.

Records of the flight show the plane left 10 minutes after its scheduled departure time for a 65-minute flight, according to flight-tracking website Flightaware.com. About 18 minutes later, at 30,000 feet, it began a descent. It descended to 20,000 feet in about four minutes and landed about 16 minutes later.

Japan's Chief Cabinet Secretary Yoshihide Suga said five people were slightly injured during the evacuation.

Boeing spokesman Marc Birtel told Reuters: "We've seen the reports, we're aware of the events and are working with our customer."

The Teal Group's Aboulafi said regulators could ground all 50 of the 787 planes now in service, while airlines may make the decision themselves. "They may want to protect their own brand images," he said.

Australia's Qantas Airways said its order for 15 Dreamliners remained on track, and its Jetstar subsidiary was due to take delivery of the first of the aircraft in the second half of this year. Qantas declined to comment further on the issues that have plagued the new light, fuel-efficient aircraft.

Last August, Qantas cancelled orders for 35 787-9 aircraft to cut costs after posting a full-year net loss for the first time in 17 years. It still has options and purchase rights for 50 of the planes from 2016. The Jetstar order is for 787-8s, the smaller variant of the wide-body, twin-engine jet.

India's aviation regulator said it was reviewing the Dreamliner's safety. State-owned Air India has six of the aircraft in service and more on order.

Shares of Dreamliner suppliers in Japan came under pressure on Wednesday, with Fuji Heavy Industries, GS Yuasa Corp -- which makes the plane's batteries -- Mitsubishi Heavy Industries, IHI and Toray Industries Inc down between 1.6 percent and 4.2 percent, while the benchmark Nikkei dropped 1.5 percent. ANA shares slipped 0.5 percent.

Japan's transport minister on Tuesday acknowledged that passenger confidence in the Dreamliner was at stake, as both Japan and the United States have opened broad and open-ended investigations into the plane after the recent incidents.

Japanese authorities said on Monday they would investigate fuel leaks on a JAL-operated 787, and the U.S. National Transportation Safety Board (NTSB) said later its agents would analyze the lithium-ion battery and burned wire bundles from a fire aboard another JAL 787 at Boston's Logan Airport last week.

The NTSB said via Twitter late on Tuesday that it was gathering information on the ANA flight's emergency landing.

(Additional reporting by Tim Kelly, Olivier Fabre, Kentaro Sugiyama and Alwyn Scott; Writing by Ian Geoghegan; Editing by Paul Tait and Alex Richardson)

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Facebook rolls out friends-based search product


MENLO PARK, California (Reuters) - Facebook Inc took the wraps off a new search tool on Tuesday that lets people trawl their network of friends to find everything from restaurants to movie recommendations, an improvement that's likely to increase competition with review websites like Yelp and potentially even Google Inc.


The so-called graph search marks the company's biggest foray into online search to date, though it displays only information within the walls of the social network rather than links to sites available across the Internet.


Mark Zuckerberg, Facebook's 28-year-old founder and chief executive, introduced the new product at the company's first major product launch since a rocky initial public offering in May.


"Graph search is designed to take a precise query and return to you the answer, not links to other places where you might get the answer," Zuckerberg told reporters at its Menlo Park, California, headquarters. "What you've seen today is a really different product from anything else that's out there."


Facebook shares, which have climbed 15 percent since the start of the year, slid 3 percent Tuesday to just above $30. The product news fell short of some of the most optimistic predictions, which included speculation that the social network would introduce its own smartphone or an Internet search engine.


Dubbed "graph search" because Facebook refers to its growing content, data and membership as the "social graph," the function will be available at first only as a "beta," or trial, for just hundreds of thousands of its billion-plus users.


It will let users browse mainly photographs, people, places and members' interests. Zuckerberg stressed that people can sort through only content that has been shared with them, addressing potential privacy concerns.


Shares in Yelp dived more than 6 percent on fears that Facebook's new friends-based search concept will begin to draw users away from the popular reviews site, which also lets people maintain a circle of trusted friends. Google stock held steady.


Some analysts said Facebook may be taking a tiny step toward eventually challenging Google on its home turf, but said that was a much more challenging undertaking and a long-term possibility at best.


Zuckerberg stressed that the new graph search did not encompass Internet searches, Google's specialty.


Sterne Agee analyst Arvind Bhatia said the product was inevitable. "We think this will enable them to expand beyond display ads and ultimately compete with Google," he said.


THE PROMISE AND THE THREAT


The world's largest online social network, Facebook is moving to regain Wall Street's confidence after the IPO and concerns about its long-term financial prospects.


Much of Facebook's recent focus has been on making money from users who are migrating to mobile devices. Zuckerberg said he could foresee a business in search over time, but analysts advised caution. Facebook has come under fire numerous times for unclear privacy guidelines.


While Tuesday's revelation fell short of some of the wilder guesses about what Facebook planned to reveal in its highest-profile news briefing since its market debut, analysts said it was overdue for a well-rounded search tool, given its current inadequacies.


Wedbush Securities analyst Michael Pachter argued that recommendations from trusted friends were more valuable than from strangers on the Web.


Facebook has a vast amount of information in its social network, including roughly 200 billion photos. But some analysts noted that the information each user has access to through a network of friends is not always that extensive and could limit the usefulness of Facebook's search offering.


"Very well-connected individuals have a rich treasure trove of data that they can mine, but the average person's storehouse of data is much sparser and has less relevance to these queries," said Ray Valdes, an analyst for Gartner Inc.


Facebook's announcement underscores the increasing overlap between social media and traditional Web search engines. Google, the world's No. 1 search engine, launched the Google+ social network in 2011 and has been integrating data between Google+ into its search engine.


In the works for more than a year, Facebook's new search feature will initially be available for the English language only and for use on desktop PCs.


Bringing the search tool to mobile devices, such as smartphones, would probably require a change in design of the product, noted Valdes. "It might be that they have to come up with innovation like voice search, a Siri-like voice assistant to get it to work well on mobile," he said, referring to the technology available on Apple Inc's iPhone.


Facebook executives at the event showcased a variety of different potential uses of the product, such as finding a date by searching for single men who live in San Francisco and are from India, and creating a holiday card by finding all the photos in which spouses appear together.


The search technology will use the "likes," "check-ins" and star-ratings that Facebook users have posted about restaurants to determine the order of the recommendations displayed, though Facebook search engineering head Lars Rasmussen noted that users' comments about restaurants don't currently affect search result rankings.


Zuckerberg said the search tool was a work in progress that would take the company years to fully build out. He pointed to a variety of additional features on the horizon, such as support for additional languages and the ability to incorporate data from third-party services, like online music services, which connect to Facebook.


"I don't necessarily think that a lot of people are going to start coming to Facebook to do Web search because of this, that isn't the intent," said Zuckerberg. "But in the event that you can't find what you're looking for, it's really nice to have."


(Additional reporting by Malathi Nayak in San Francisco and Himank Sharma in Bangalore, writing and editing by Edwin Chan; Editing by Phil Berlowitz and Prudence Crowther)



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Anti-doping officials want Armstrong under oath


A televised confession by Lance Armstrong isn't enough.


Anti-doping officials want the disgraced cyclist to admit his guilt under oath before considering whether to lift a lifetime ban clouding his future as a competitive athlete. That was seconded by at least one former teammate whom Armstrong pushed aside on his way to the top of the Tour de France podium.


"Lance knows everything that happened," Frankie Andreu told The Associated Press on Tuesday. "He's the one who knows who did what because he was the ringleader. It's up to him how much he wants to expose."


Armstrong has been in conversations with U.S. Anti-Doping Agency officials, touching off speculation that he may be willing to cooperate with authorities there and name names.


Interviewer Oprah Winfrey didn't say if the subject was broached during the taping Monday at a downtown Austin hotel. In an appearance on "CBS This Morning," she declined to give details of what Armstrong told her, but said she was "mesmerized and riveted by some of his answers."


Asked whether the disgraced cyclist appeared genuinely contrite after a decade of fierce denials, Winfrey replied, "I felt that he was thoughtful, I thought that he was serious, I thought that he certainly had prepared for this moment. I would say that he met the moment."


She was promoting what has become a two-part special, Thursday and Friday, on her OWN network.


Around the same time, World Anti-Doping Agency officials issued a statement saying nothing short of "a full confession under oath" would cause them to reconsider Armstrong's lifetime ban from sanctioned events.


The International Cycling Union also urged Armstrong to tell his story to an independent commission it has set up to examine claims that the sport's governing body hid suspicious samples from the cyclist, accepted financial donations from him and helped him avoid detection in doping tests.


The ban was only one of several penalties handed to Armstrong after a scathing, 1,000-page report by USADA last year. The cyclist was also stripped of his seven Tour de France titles, lost nearly all of his endorsements and was forced to cut ties with the Livestrong cancer charity he founded in 1997.


The report portrayed Armstrong as the mastermind of a long-running scheme that employed steroids, blood boosters such as EPO, and a range of other performance-enhancers to dominate the tour. It included revealing testimony from 11 former teammates, including Andreu and his wife, Betsy.


"A lot of it was news and shocking to me," Andreu said. "I am sure it's shocking to the world. There's been signs leading up to this moment for a long time. For my wife and I, we've been attacked and ripped apart by Lance and all of his people, and all his supporters repeatedly for a long time. I just wish they wouldn't have been so blind and opened up their eyes earlier to all the signs that indicated there was deception there, so that we wouldn't have had to suffer as much.


"And it's not only us," he added, "he's ruined a lot of people lives."


Armstrong was believed to have left for Hawaii. The street outside his Spanish-style villa on Austin's west side was quiet the day after international TV crews gathered there hoping to catch a glimpse of him. Nearby, members of his legal team mapped out a strategy on how to handle at least two pending lawsuits against Armstrong, and possibly a third.


The AP reported earlier Tuesday that Justice Department officials were likely to join a whistleblower lawsuit against Armstrong by former teammate Floyd Landis, citing a source who works outside the government and requested anonymity because he was not authorized to speak on the record about the matter.


The lawsuit by Landis, who was stripped of the 2006 Tour de France title after testing positive, alleges that Armstrong defrauded the U.S. government by repeatedly denying he used performance-enhancing drugs. The deadline to join the False Claims Act lawsuit, which could require Armstrong to return substantial sponsorship fees and pay a hefty penalty, is Thursday.


Landis is hardly the only one seeking money back from Armstrong.


During his long reign as cycling champion, Armstrong scolded some critics in public, didn't hesitate to punish outspoken riders during the race, and waged legal battles against still others in court.


The London-based Sunday Times has already filed a lawsuit to recover about $500,000 it paid Armstrong to settle a libel case, and Dallas-based SCA Promotions, which tried to deny him a promised bonus for a Tour de France win, has threatened to bring another lawsuit seeking to recover more than $7.5 million awarded by an arbitration panel.


In Australia, the government of the state of South Australia said it will seek the repayment of several million dollars in appearance fees paid to Armstrong for competing in the Tour Down Under in 2009, 2010 and 2011.


"We'd be more than happy for Mr. Armstrong to make any repayment of monies to us," South Australia Premier Jay Weatherill said.


___


Litke reported from Chicago, Vertuno from Austin, Texas. Pete Yost in Washington and John L. Mone in Dearborn, Mich., also contributed to this report.


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Americans favor “Lincoln” for top Oscars: poll






NEW YORK (Reuters) – Director Ben Affleck and “Argo” may have been the big winners at the Golden Globes, but many Americans think Steven Spielberg and “Lincoln” should take home the top Oscars at next month’s awards.


Nearly a quarter of Americans questioned in an Ipsos poll for Reuters thought the Civil War drama “Lincoln” should win the Oscar for best picture at the 85th Academy Awards in Los Angeles on February 24. Spielberg was also their top choice for best director, with 36 percent choosing him.






Only 4 percent of Americans thought “Argo,” which depicts the rescue of American diplomats in Iran in the 1970s, should win the Academy Award for best picture.


The poll results have little if any implication for who will ultimately win the Oscars, which are voted on by movie industry professionals.


The Golden Globes are sometimes looked to for hints on the eventual Oscar victors, the biggest prizes in the film industry, as many Globe winners have gone on to Oscars success. But Affleck is not even in the running for best director after he was snubbed by the Academy of Motion Picture Arts and Sciences which announced its nominations last week.


Americans chose Daniel Day-Lewis as their clear favorite to follow up his Golden Globe win for his portrayal of Abraham Lincoln with a best actor Oscar.


Twenty-two percent chose him over Denzel Washington in “Flight,” who polled 16 percent while Hugh Jackman, who won a Golden Globe for his role in the musical “Les Miserables” was third.


But the choice for best actress was less clear cut. Twelve percent of the 1,158 Americans polled voted for Naomi Watts as the distraught mother in the tsunami drama “The Impossible,” followed by 10 percent for Jennifer Lawrence in “Silver Linings Playbook” and 9 percent for Jessica Chastain in the search for Osama Bin Laden thriller, “Zero Dark Thirty.”


Lawrence won the Golden Globe on Sunday for best actress in a comedy or musical, while Chastain took home the prize for best actress in a drama.


“Lincoln” was also the top choice in the poll for the supporting categories, with Tommy Lee Jones and Sally Field favorites for their performances in the film.


Comedians Tina Fey and Amy Poehler, who won praise for their first stint hosting the Golden Globes, will be a hard act to follow but 42 percent of Americans approved of the choice of outspoken comedian and creator of “Family Guy” Seth MacFarlane to helm the Academy Awards.


If given the opportunity to select the host for the Oscars, 15 of people said they would opt for comedian Billy Crystal, followed by 12 percent who chose Ellen DeGeneres while 10 percent wanted Steve Martin.


To view the full poll results go to http://link.reuters.com/deh35t


The poll, which was conducted online from January 11-15, has a credibility interval of plus or minus 3.3 percentage points.


(Reporting by Patricia Reaney; editing by Cynthia Osterman)


Movies News Headlines – Yahoo! News





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Oxygen halts controversial 'Babies' Mamas' project


NEW YORK (AP) — Oxygen Media has pulled the plug on "All My Babies' Mamas," a reality special the network was developing about a musician who has fathered 11 children with 10 different mothers.


The network offered no reason for curtailing the project. In a statement issued Tuesday, Oxygen said that, "as part of our development process, we have reviewed casting and decided not to move forward with the special."


The one-hour program would have featured Atlanta rap artist Shawty Lo, his children and their mothers. It was expected to air later this year on Oxygen, an NBCUniversal cable network owned by Comcast.


"All My Babies' Mamas" got a hostile public reception after Oxygen announced it last month. At least one petition calling for Oxygen to shut it down has collected more than 37,000 signatures.


The Parents Television Council called the program's concept "grotesquely irresponsible and exploitive" and pledged to contact advertisers of the show if it reached the air.


Previously, Oxygen denied charges that the show was meant to be "a stereotypical representation of everyday life for any one demographic or cross section of society," but rather would reveal "the complicated lives of one man, his children's mamas and their army of children."


On Tuesday, Oxygen said it will "continue to develop compelling content that resonates with our young female viewers and drives the cultural conversation."


___


Online:


www.oxygen.com


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Japanese airlines ground Boeing 787s










TOKYO (Reuters) - Japan's two leading airlines grounded their fleets of Boeing 787s on Wednesday after one of the Dreamliner passenger jets made an emergency landing, heightening safety concerns over a plane many see as the future of commercial aviation.

All Nippon Airways Co said it was grounding all 17 of its 787s and Japan Airlines Co said it was suspending all flights scheduled for departure on Wednesday. The two carriers operate around half of the 50 Dreamliners delivered by Boeing to date.






"I think you're nearing the tipping point where they need to regard this as a serious crisis," said Richard Aboulafia, a senior analyst with the Teal Group in Fairfax, Virginia. "This is going to change people's perception of the aircraft if they don't act quickly."

ANA said instruments on domestic flight 692 to Haneda Airport near Tokyo from Yamaguchi in western Japan indicated a battery error, triggering emergency warnings to the pilots. The carrier said the battery was the same type as one that caused a fire on another Dreamliner at a U.S. airport last week.

All 129 passengers and eight crew were evacuated safely via the plane's inflatable chutes. At a news conference, ANA said a smell was detected in the cockpit and the cabin, and pilots received emergency warning of smoke in the forward electronic compartment.

The incident follows a series of mishaps for the new Dreamliner. The sophisticated plane, the world's first mainly carbon-composite airliner, has suffered fuel leaks, a battery fire, wiring problem, brake computer glitch and cracked cockpit window in recent days alone.

SMOKE ON BOARD

Flight 692 left Yamaguchi Airport shortly after 8 a.m. local time (6:00 p.m. EST Tuesday), but made an emergency landing in Takamatsu at 8:45 a.m. after smoke appeared in the cockpit, an Osaka airport authority spokesman said.

Records of the flight show the plane left 10 minutes after its scheduled departure time for a 65-minute flight, according to flight-tracking website Flightaware.com. About 18 minutes later, at 30,000 feet, it began a descent. It descended to 20,000 feet in about four minutes and landed about 16 minutes later.

Japan's Chief Cabinet Secretary Yoshihide Suga said five people were slightly injured during the evacuation.

Boeing spokesman Marc Birtel told Reuters: "We've seen the reports, we're aware of the events and are working with our customer."

The Teal Group's Aboulafi said regulators could ground all 50 of the 787 planes now in service, while airlines may make the decision themselves. "They may want to protect their own brand images," he said.

Australia's Qantas Airways said its order for 15 Dreamliners remained on track, and its Jetstar subsidiary was due to take delivery of the first of the aircraft in the second half of this year. Qantas declined to comment further on the issues that have plagued the new light, fuel-efficient aircraft.

Last August, Qantas cancelled orders for 35 787-9 aircraft to cut costs after posting a full-year net loss for the first time in 17 years. It still has options and purchase rights for 50 of the planes from 2016. The Jetstar order is for 787-8s, the smaller variant of the wide-body, twin-engine jet.

India's aviation regulator said it was reviewing the Dreamliner's safety. State-owned Air India has six of the aircraft in service and more on order.

Shares of Dreamliner suppliers in Japan came under pressure on Wednesday, with Fuji Heavy Industries, GS Yuasa Corp -- which makes the plane's batteries -- Mitsubishi Heavy Industries, IHI and Toray Industries Inc down between 1.6 percent and 4.2 percent, while the benchmark Nikkei dropped 1.5 percent. ANA shares slipped 0.5 percent.

Japan's transport minister on Tuesday acknowledged that passenger confidence in the Dreamliner was at stake, as both Japan and the United States have opened broad and open-ended investigations into the plane after the recent incidents.

Japanese authorities said on Monday they would investigate fuel leaks on a JAL-operated 787, and the U.S. National Transportation Safety Board (NTSB) said later its agents would analyze the lithium-ion battery and burned wire bundles from a fire aboard another JAL 787 at Boston's Logan Airport last week.

The NTSB said via Twitter late on Tuesday that it was gathering information on the ANA flight's emergency landing.

(Additional reporting by Tim Kelly, Olivier Fabre, Kentaro Sugiyama and Alwyn Scott; Writing by Ian Geoghegan; Editing by Paul Tait and Alex Richardson)

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Evanston couple dealt setback in adoption of South Korean baby

A federal judge today terminated an order that gave possession of 7-month-old Sehwa to Christopher and Jinshil Duquet. The Office of Refugee Resettlement now has control over Sehwa while her immigration status is determined.









An Evanston couple fighting to adopt a South Korean baby whom they've raised since shortly after her birth was dealt a setback Monday when a federal judge returned authority over the child to U.S. officials, a step toward the child's possible deportation.


U.S. District Judge Milton Shadur made it clear that he trusted that officials would make decisions in the baby's best interest, scolding federal immigration lawyers for "a level of insensitivity and sometimes even callousness" in the past.


Shadur said it is up to the Office of Refugee Resettlement to decide whether 7-month-old Sehwa Kim should remain with Jinshil and Christopher Duquet, of Evanston, while immigration officials decide whether she should be deported, and if so, when.








But it remained unclear what next steps would be taken in considering the child's temporary and permanent placement.


A spokeswoman for the Office of Refugee Resettlement said that the U.S. Department of Homeland Security — not the ORR — will decide whether Sehwa will remain at least temporarily with the Duquets.


"ORR plays no role in the adjudication of this particular custody case," a department spokeswoman said. "We have nothing to do with immigration."


Homeland Security officials could not be reached.


South Korea has been fighting for the child's return, accusing the Duquets of circumventing their adoption procedures.


The Duquets, who say they were misled by a South Korean lawyer and thought they were participating in a legal private adoption, declined comment.


Customs officials at O'Hare International Airport flagged the child's entry into the United States in June when Jinshil Duquet brought her from South Korea. The officials said Sehwa lacked the proper visa for a prospective adoption.


"The child has a right to her Korean heritage," said Donald Schiller, a Chicago attorney who represents South Korea. "(Sehwa) will overcome it. She'll have a wonderful, loving family."


The couple appeared in Cook County Circuit Court before the federal hearing Monday after filing an application to adopt Sehwa. The judge assigned a legal guardian to represent the child, but it's unclear if that process can proceed, given the federal government's involvement.


"It's a very sad, a very tragic day for the Duquets, for justice and for concepts of fairness," said Jonathan Minkus, a lawyer representing the family.


The child's birth mother lives in a shelter for unwed mothers and does not want the baby back.


The Duquets maintain that the baby is being used as a political pawn in South Korea, which has tightened laws regarding international adoptions while encouraging its own citizens to adopt. Despite policy changes, there remains a cultural stigma against adoption, leaving many children in orphanages, experts say.


lblack@tribune.com

Twitter: @TribLocal





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Dell in talks to go private, shares surge


NEW YORK/SAN FRANCISCO (Reuters) - Dell Inc is in talks with private equity firms on a potential buyout, two sources familiar with the matter told Reuters, confirming reports that sent shares in the world's No. 3 PC maker soaring 13 percent to nearly a eight-month high.


The firms are now holding discussions on a deal with billionaire Chief Executive and founder Michael Dell, who owns about 14 percent of the company, according to one source with knowledge of the matter.


The Wall Street Journal cited unidentified sources as saying TPG and Silver Lake could team up on an offer, possibly in conjunction with other investors such as pension funds. JPMorgan Chase & Co was also involved in the negotiations, it added.


The first source told Reuters any potential deal could be structured as a management-led buyout with Michael Dell at the helm.


Talks had progressed for two to three months, heating up in late 2012, and a deal could be reached in six weeks, the Journal cited sources as saying.


Dell, which has steadily ceded market share to Hewlett Packard and China's Lenovo, declined to comment on what it called rumors and speculation.


The company has lost 40 percent of its value since last year's peak, and is trying to reinvent itself as a seller of higher-margin services to corporations - an internal overhaul that might be conducted away from public scrutiny.


Some analysts say taking the company private, an idea that has surfaced sporadically in past years, makes sense.


But others pointed to the sheer expense of such a deal, an outsized debt burden of some $4.5 billion and murky prospects as a major player in a PC market that's dwindling with the advent of tablets such as Apple Inc's iPad.


"The market value of Dell has come down so much that a buyout has become something that is plausible. They have about $5 billion in net cash and also free cash flow generation that could sustain payments on debt from a leveraged buyout," said S&P Capital IQ analyst Angelo Zino.


"However, we think it's unlikely, given the sheer size of Dell and where the stock is currently trading at."


A buyout of the $19 billion company would be one of the largest deals since the global recession.


Bloomberg first reported that Dell and private equity firms were discussing a deal.


Before news of the deal emerged, Sanford Bernstein analyst Toni Sacconaghi speculated that Dell was worth $12 a share on a sum-of-parts basis, of which the PC business was worth about $4.70. In a report last week, the analyst said Dell could conceivably be split along its PC and enterprises segments, though such an approach would significantly reduce much-needed scale.


DOWNWARD SPIRAL


Shipments of computers by the company, now reinventing itself as a provider of computers and services to corporations and government agencies, plummeted 21 percent in the fourth quarter, according to IDC. In the third quarter, its profit slid 47 percent.


Overall sales of PCs over the holidays slid for the first time in more than five years, according to industry researcher IDC.


On Monday, another industry research firm, Gartner, estimated that Dell lost 2 percentage points of market share in the fourth quarter, slipping to 10.2 percent from 12.2 percent a year earlier.


Dell's fortunes have waxed and waned. Since Michael Dell founded the company in 1984 out of his college dorm room with $1,000, the company has grown into a global PC powerhouse that pioneered just-in-time inventory management and online sales of custom-built computers.


But when Dell handed the reins of his company to long-time lieutenant Kevin Rollins in 2004, sales and customer service began to slip. With the board's blessing, Michael Dell returned in January 2007 to turn his company around, only to run into the global recession and a shift by consumers toward powerful, mobile devices like tablets.


At a Sanford Bernstein investors' conference in 2010, Dell said he had considered taking the company private. He told investors at the time that a transformation of his company that he had hoped to effect upon his return was "incomplete."


Those comments triggered a round of speculation, but most analysts said buying out such a large company would be difficult because of the massive financing requirements.


Michael Dell now owns 244 million shares in the company, according to Thomson Reuters data, and last year was ranked the 22nd richest American with a fortune of $14.6 billion.


Dell's stock soared to an intra-day high of $12.83 in afternoon trade - the highest since May 2012 - after a brief trading suspension. It closed at $12.29.


Its traded bonds also came under pressure over fears of a significant hike in leverage. Its 4.625 percent, 2021 bonds were trading 80 basis points wider at 210 basis points over U.S. Treasuries, while its 2.3 percent, 2015s were about 30 basis points wider at 88 basis points over Treasuries.


"It can be difficult to realize the full value of various corporate assets ... during transition periods, and executing on a long-term transformation as a private company could have advantages," argued ISI analyst Brian Marshall.


(Additional reporting by John Balassi at IFR, Alistair Barr and Noel Randewich in San Francisco, and Jessica Toonkel and Kim Soyoung in New York, Writing by Edwin Chan; Editing by Bernard Orr and Steve Orlofsky)



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AP source: Armstrong tells Oprah Winfrey he doped


AUSTIN, Texas (AP) — After a decade of denial, Lance Armstrong has finally come clean: He used performance-enhancing drugs to win the Tour de France.


The disgraced cyclist made the confession to Oprah Winfrey during an interview taped Monday, a person familiar with the situation told The Associated Press. The person spoke on condition of anonymity because the interview is to be broadcast Thursday on Winfrey's network.


The admission Monday came hours after an emotional apology by Armstrong to the Livestrong charity that he founded and took global on the strength of his celebrity as a cancer survivor who came back to win one of sport's most grueling events.


The confession was a stunning reversal, after years of public statements, interviews and court battles in which he denied doping and zealously protected his reputation.


Winfrey tweeted afterward, "Just wrapped with (at)lancearmstrong More than 2 1/2 hours. He came READY!" She was scheduled to appear on "CBS This Morning" on Tuesday to discuss the interview.


Even before the taping session with Winfrey began around 2 p.m., EST, Armstrong's apology suggested he would carry through on promises over the weekend to answer her questions "directly, honestly and candidly."


The cyclist was stripped of his Tour de France titles, lost most of his endorsements and was forced to leave the foundation last year after the U.S. Anti-Doping Agency issued a damning, 1,000-page report that accused him of masterminding a long-running doping scheme.


About 100 staff members of the charity Armstrong founded in 1997 gathered in a conference room as Armstrong arrived with a simple message: "I'm sorry." He choked up during a 20-minute talk, expressing regret for the long-running controversy tied to performance-enhancers had caused, but stopped short of admitting he used them.


Before he was done, several members were in tears when he urged them to continue the charity's mission, helping cancer patients and their families.


"Heartfelt and sincere," is how Livestrong spokesman Katherine McLane described his speech.


Armstrong later huddled with almost a dozen people before stepping into a room set up at a downtown Austin hotel for the interview.


The group included close friends and advisers, two of his lawyers and Bill Stapleton, his agent, manager and business partner. They exchanged handshakes and smiles, but declined comment when approached by a reporter. Most members of that group left the hotel through the front entrance around 5 p.m., although Armstrong was not with them.


No further details about the interview were available immediately because of confidentiality agreements signed by both camps. But Winfrey promoted it as a "no-holds barred" session, and after the voluminous USADA report — which included testimony from 11 former teammates — she had plenty of material for questions. USADA chief executive Travis Tygart, a longtime critic of Armstrong's, called the drug regimen practiced while Armstrong led the U.S. Postal Service team, "The most sophisticated, professionalized and successful doping program that sport has ever seen."


Armstrong also went after his critics ruthlessly during his reign as cycling champion. He scolded some in public and didn't hesitate to punish outspoken riders during the race itself. He waged legal battles against still others in court.


Betsy Andreu, the wife of former Armstrong teammate Frankie Andreu, was one of the first to publicly accuse Armstrong of using performance-enhancing drugs. She called news of Armstrong's confession "very emotional and very sad," and got choked up as well when asked to comment.


"He used to be one of my husband's best friends and because he wouldn't go along with the doping, he got kicked to the side. Lance could have a positive impact if he tells the truth on everything. He's got to be completely honest," she said.


At least one of his opponents, the London-based Sunday Times, has already filed a lawsuit to recover about $500,000 it paid him to settle a libel case, and Dallas-based SCA Promotions, which tried to deny Armstrong a promised bonus for a Tour de France win, has threatened to bring yet another lawsuit seeking to recover more than $7.5 million an arbitration panel awarded the cyclist in that dispute.


In addition, former teammate Floyd Landis, who was stripped of the 2006 Tour de France title for doping, has filed a federal whistle-blower lawsuit that accused Armstrong of defrauding the U.S. Postal Service. The Justice Department has yet to decide whether it will join the suit as a plaintiff.


The lawsuit most likely to be influenced by a confession might be the Sunday Times case. Potential perjury charges stemming from Armstrong's sworn testimony in the 2005 arbitration fight would not apply because of the statute of limitations. Armstrong was not deposed during the federal investigation that was closed last year.


Armstrong is said to be worth around $100 million. But most sponsors dropped him after USADA's scathing report — at the cost of tens of millions of dollars — and soon after, he left the board of Livestrong.


After the USADA findings, he was also barred from competing in the elite triathlon or running events he participated in after his cycling career. World Anti-Doping Code rules state his lifetime ban cannot be reduced to less than eight years. WADA and U.S. Anti-Doping officials could agree to reduce the ban further depending on what information Armstrong provides and his level of cooperation.


Whether his confession would begin to heal those ruptures and restore that reputation remains to be seen.


Diagnosed with testicular cancer in October 1996, the disease soon spread to his lungs and brains. Armstrong's doctors gave him a 40 percent chance of survival at the time and never expected he'd compete at anything more strenuous than gin rummy. Winning the demanding race less than three years later made Armstrong a hero.


___


Jim Litke reported from Chicago.


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