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CNN LIVE AT DAYBREAK

Congressional Bill Would Require Crash-Test Results to be Displayed on Stickers; New Government Efforts to Catch Thieves Stealing Data Online

Aired May 20, 2005 - 06:00   ET

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


CAROL COSTELLO, CNN ANCHOR: One plus one equals one. The winds of change are in the works in the airline industry. We'll tell you what changes to expect.
Then, sticker shock. When you buy a car, you want to know how it performs, but what about those crash test results?

And later, keeping your family safe, even if you don't have traditional phone lines in your house.

It is Friday, May 19.

You are watching DAYBREAK.

And good morning to you.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

Now in the news, military recruiters across the country will not be doing any recruiting today. It's being called a stand down day so they can focus on ethics and rules of training. There are reports that some recruiters lie and bend the rules to get people to sign up.

An anti-U.S. Muslim cleric is asking all Muslims to place Israeli and American flags on the ground in front of mosques so people can step on them as a sign of protest. Muqtada al-Sadr's call comes a day after 13 of his supporters were detained by U.S. forces.

It isn't June 1, but the first storm of the hurricane season is pummeling the coast of Central America. The first hurricane, now tropical storm Adrian, is tearing up Guatemala and El Salvador. Is the danger still there -- Chad?

CHAD MYERS, CNN METEOROLOGIST: It truly is, Carol.

It really wasn't a wind event. This storm was 85 miles per hour, a category one. You take those all day long as a big blow. But I'll tell you what, the problem with this storm is that you're looking at a 20 inch rainfall total for El Salvador, San Salvador and the mountains to the east of there, all the way through Honduras back into Guatemala.

Talking about literally mountaintops that are 13,000 feet high. That wind gets blown up the mountaintops and you just -- it just rains for days, basically. And it's raining very heavily now and that rain is going to continue. And then it's going to have to go somewhere. It's going to wash away. They're going to see mud slides and then eventually the storm by Saturday even gets back into the Caribbean. I don't think it's going to redevelop into anything significant.

But right now the winds are still 60s. It's still a tropical storm. But it's the rain and the flooding and the mud slides that's the problem.

(WEATHER REPORT)

COSTELLO: It could be a good deal for you, another choice for low cost air fares. America West and US Airways agreed on a merger that could give a bigger carriers a run for their money, at least they hope so. The question now, will it work?

(BEGIN VIDEO TAPE)

COSTELLO (voice-over): Cross your fingers, consumers. The proposed merger between two of the nation's top airlines will create another big player in the low fare game. US Airways and America West have agreed to the industry's first major merger in years.

JIM KLUKEL, US AIRWAYS PASSENGER: Oh, I think it would make better improvements in the sense that right now they're kind of struggling and then to get another airline combined with U.S. Air, it will help them out. But then again, it will probably help the customer out in the long run.

COSTELLO: The $1.5 billion deal will create the nation's sixth largest airline, serving more than 200 cities from coast to coast and worldwide.

DOUG PARKER, AMERICA WEST CEO: We'll take our extensive Western network, combine that with US Airways' valuable East Coast network. And that's great news for consumers. And we'll do so at prices that the consumers of both of our airlines have become fond of.

COSTELLO: The merged airline will keep the US Airways name and its red, white and blue color scheme, but it will base operations at the current America West headquarters in Arizona. It plans to cut $600 million in operating costs. Much of that could come from cutting as many as 5,000 of the combined companies' nearly 40,000 jobs.

The new airline would also mothball 58 of their jets.

PARKER: This isn't about reducing 4,000 or 5,000 jobs, it's about saving 35,000 jobs.

UNIDENTIFIED MALE: We may see a new aircraft here or there with a new paint job, but essentially our jobs are going to remain the same for a while. And it gives us time to work through those details in an orderly fashion.

COSTELLO: Collectively, the two carriers have been in bankruptcy three times. They've also lost a combined $32 billion since the September 11 attacks. The company says the deal will create the first nationwide, full service, low cost airline. But before the deal becomes official, it still must get federal approval, since the pair owe more than $1 billion in government loans and since US Airways is still in bankruptcy.

(END VIDEO TAPE)

COSTELLO: And here are some other facts on the merger from our DAYBREAK data file.

The combined airline will have 361 planes in service. It also has a deal in place to buy more planes from Airbus. The company says it has no plans to close any of its existing routes, and that should be good news to travelers from Beckley, West Virginia to Carlsbad, California. And it'll operate with three primary hubs in Phoenix, Philadelphia and Charlotte. Our Carrie Lee will have more on the customer impact of this merger. That's coming up in about 35 minutes.

There is new word into CNN this morning in the case of those two missing Idaho children. 9-year-old Dylan Groene and his 8-year-old sister Shasta may have been spotted alive, supposedly in this Idaho store. Now, that's prompted a lookout for a man driving a light- colored, full sized van with Washington State plates.

The children have been missing since Monday, when the bodies of their brother, mother and boyfriend -- her boyfriend, rather -- were found in their home in Coeur d'Alene. Searchers have combed the woods and the fields around the home. Divers searched ponds and wetlands. The missing children's distraught father also issued this plea.

(BEGIN VIDEO CLIP)

STEVE GROENE, FATHER OF MISSING CHILDREN: I'd like to address my children's abductors or abductor. Please, please release my children safely. They had nothing to do with any of this. Release them in a safe area where the law enforcement can find them. Call the help line, let them know where they can be found. Please, we need the safe return of those children. Thank you.

(END VIDEO CLIP)

COSTELLO: We know a little bit more about the murder scene. It was brutal. The county coroner reports all three murder victims had fractured skulls.

On Capitol Hill this morning, moderate senators from both parties are trying again to hammer out a compromise over President Bush's judicial nominees. Democrats have threatened to use a filibuster to block a vote on Judge Priscilla Owen and others they consider too far out of the mainstream.

One Republican is comparing the Democrats to Hitler.

(BEGIN VIDEO CLIP)

SEN. RICK SANTORUM (R-PA), ARMED SERVICES COMMITTEE: The rule has been in place for 214 years that this is the way we confirm judge -- judges, broken by the other side two years ago. And the audacity of some members to stand up and say how dare you break this rule! It's the equivalent of Adolph Hitler in 1942 saying I'm in Paris, how dare you invade me? How dare you bomb my city?

(END VIDEO CLIP)

COSTELLO: That'll lead to a compromise.

Senate Majority Leader Bill Frist has threatened to change Senate rules to do away with judicial filibusters if Democrats refuse to end debate.

First Lady Laura Bush is on her way to the Middle East. Her visit comes amid the furor in the Muslim world of the retracted "Newsweek" story that the Koran was desecrated by American interrogators. Mrs. Bush says part of her mission is to help repair the U.S. image overseas.

(BEGIN VIDEO CLIP)

LAURA BUSH, FIRST LADY OF THE UNITED STATES: In the United States, if there is a terrible report, people don't riot and kill other people. And, you know, that -- you can't excuse what they did because of a mistake. You know, you can't blame it all on "Newsweek." But at the same time, it was irresponsible and that's, it's too bad.

(END VIDEO CLIP)

COSTELLO: Mrs. Bush will first stop on Jordan today. She'll also visit Israel and Egypt.

In other "Stories Across America" now, this Delta flight may have ended with a smooth landing at Cincinnati's airport, but the takeoff was anything but routine. It seems the plane came close to hitting a Leer jet that was not cleared for takeoff. Passengers aboard the Delta Airlines flight credited their pilot with some very quick brake work.

In Brooklyn, New York, one construction worker was critically injured when the building he was working on simply collapsed. Ten other workers were injured when the walls caved in. People living on either side of the collapsed building were evacuated due to fears their homes could be unstable, as well.

Pro-life protesters say they'll be on hand when Rudy Giuliani gives the commencement address at Loyola College of Maryland. Protest leaders say Giuliani's pro-choice views are not compatible with Catholic Church teachings. They had asked him to cancel his appearance at the Jesuit school, but the former New York mayor declined.

Still to come on DAYBREAK, what not to buy. A new law could change what you see on the sale stickers of cars, trucks and SUVs.

And digging deep for the culprits in a huge case of stolen personal information.

And later, a popular theme park changes the rules on who is allowed in the park and who is not.

And ladies, how many chores does your husband do? We'll see who's really carrying the weight around the house.

But first, here's a look at what else is making news this Friday morning.

(COMMERCIAL BREAK)

COSTELLO: If you listen to the lyrics of that song, "if I were a rich girl, then I'd have all the money in the world." Yes, you would.

Here is a new twist in identity theft. Criminals are targeting your car or truck. "USA Today" reports thieves are stealing the I.D. numbers, that is, the VIN number, of luxury cars and SUVs. Then they put those numbers on stolen vehicles. Hot vehicles with legitimate I.D.s are much easier to register at the DMV.

OK, the government spent more than $7.5 million conducting auto crash tests and the only way you ever hear about them is on the TV news. It's very useful information when you go to buy a car. So why not put the information on the stickers of those new cars?

Well, the Senate has approved a bill that will require automakers to do just that.

So let's talk more about it with automotive expert Lauren Fix.

Good morning, Lauren.

LAUREN FIX, DIY NETWORK & AUTOMOTIVE EXPERT: Good morning, Carol.

COSTELLO: It's so nice to talk to you again.

FIX: It's nice to talk to you, too.

COSTELLO: So, how would this look on the sticker?

FIX: Well, I think right now there's a lot of information on stickers and people always look for the price and maybe the options, but there's a lot of great information they can overlook. And if we can get crash test ratings on the window stickers, which are called Monronies due to the person that invented them, I think it would make things a little easier as long as we're aware of what the crash test rating means.

COSTELLO: It sounds simple, but you're right, there's a lot of information on those stickers. There's city and highway mileage, warranty information, port of entry, whether it has reading lights in the rear seats.

Won't that information about crash tests get kind of lost with all that?

FIX: Well, they're not going to put that in the with listing of the options. So, I mean, one thing is most of us don't really look at port of entry and, you know, delivery and destination and press charges until you're coming down to actually making a deal.

But I mean you're going to look at the side, the window sticker, and see that information. And I'm sure, knowing the U.S. government, they're going to put it in some sort of box or some sort of way for it to be obvious, for you to see it.

COSTELLO: Well, it's funny you should say that, Lauren.

FIX: I think it will make a big difference.

COSTELLO: Let me interrupt.

It's funny you should say that, because we actually have a graphic of what this looks like. They're going to use this star system. That's pretty easy.

FIX: It is pretty easy as long as you understand what it means. When five stars means you have 10 percent or less chance of injury. And the thing is, people aren't aware of that. So I think there needs to be some sort of educational program to go along with that that shows what the stars mean and how front and side impact crash test readings are so important, as well as rollover. I mean four stars is an 11 to 20 percent chance of injury; three stars -- and then this is getting to be kind of scary in my book -- is a 21 to 35 percent chance of injury; two stars is 36 to 45 percent chance of injury; and one star, 46 or greater chance, percent chance of injury. That's pretty serious.

COSTELLO: But you're...

FIX: And so if you got that...

COSTELLO: But you're right about the education part, because if I'm selling a car that has a lousy rating, I'm really not going to point that out to you.

FIX: Probably not. But we tend to be smart consumers. We look on the Internet. We get our information. Sometimes we forget our information or you're walking around on a Sunday after everybody is closed and you want to get some good information. If you're looking at two different vehicles, whether they be cars, trucks, minivans, SUVs, whatever that is, it's nice to know rollover protection, side impact crash tests, which is so critical and makes such a big difference. It makes you see that this one vehicle has got a different crash test than the one next to it, and it might be the same model, because they do sell vehicles, especially certain sedans, without side impact air bags. And that makes a huge difference when it comes to making a decision in purchasing a car.

COSTELLO: Absolutely.

Lauren Fix, thank you for joining us this morning.

And again, the Senate just passed this bill. It still has a few more hurdles to go before it actually becomes required.

Your news, money, weather and sports.

It's 6:15 Eastern.

Here's what's all new this morning.

A possible break in the case of those missing Idaho children. Authorities say they received a tip that 9-year-old Dylan Groene and his 8-year-old sister Shasta were spotted at an Idaho store. That prompted a search for a tall man driving a light colored van with Washington State license plates.

In money news, the cost of oil is back at $47 a barrel. The increase comes as OPEC warned it might start to reign in supplies because inventories were building up too quickly.

In culture, Donald Trump has chosen his first female apprentice. There she is. 26-year-old Kendra Todd won "The Donald's" approval and was hired. Her trophy is a $250,000 job a year, a year job, I should say. She's going to develop a mansion in Palm Beach, Florida.

In sports, the Detroit Pistons move one step closer to defending their NBA title by dismissing the Indiana Pacers. The Pistons eliminated the Pacers 88-79. On Monday, Detroit will face the Miami Heat in the Eastern Conference finals -- Chad.

MYERS: Carol, the Preakness will be run this weekend, as well, actually; tomorrow afternoon, 6:00, down in Baltimore, or very close to Baltimore.

(WEATHER REPORT)

COSTELLO: Still to come on DAYBREAK, on the trail of hackers. New developments in that security breach at Lexis-Nexis.

And later, in a time of war, have Army recruiters gone too far? One young man shares his recruitment experience, when DAYBREAK continues this Friday morning.

(COMMERCIAL BREAK)

COSTELLO: Now for some business briefs.

That lonely Maytag repairman now has a new boss. The company was sold to a group of investors in a deal worth more than $1 billion. Maytag blamed high steel costs and greater competition for its recent financial troubles.

Google is hoping to keep more eyes on their ads by offering some individual service. The personalized search engine's plan is similar to the service already offered by Yahoo!. As many as 21 million people use that My Yahoo! feature every month, so you know what I'm talking about.

In other business news, the government is stepping up its efforts to catch data thieves.

Carrie Lee joins us with some "Business Buzz" this morning -- good morning.

CARRIE LEE, CNN CORRESPONDENT: Carol, thanks.

Remember earlier this year Nexis-Lexis warned about 300,000 people that their personal information may have been stolen from their computers? Well, now federal authorities have searched dozens of homes and computers as part of the investigation into that stolen data.

FBI and Secret Service didn't say what, if anything, was found at the homes and on the computers, and no arrests have been made so far.

Most of the searches were in northern California, but at least one home was in Minnesota. The government is definitely taking identity theft seriously, Carol. So at least they're trying to do what they can to curb the problem.

COSTELLO: OK, you know, I'm keeping my eye on this weather satellite that's going to be launched.

LEE: Sure. I know.

COSTELLO: Are we ready yet or does Carrie have -- OK, we're going to go for it, Carrie.

LEE: Thank you.

COSTELLO: We're going to go.

NASA is launching this new weather satellite.

Chad knows much more about this than either you or I, so, Chad, take it away.

MYERS: Yes, T minus about 25 seconds. This is a Delta, a Boeing Delta 2 rocket. It's going to launch the NOA, NOA-N satellite. It's going to be a polar orbiting satellite. This is a joint venture between NOAH and NASA.

What a polar orbiting satellite is, is actually when it goes over the poles, it runs over the North Pole, goes down and then over the South Pole, back up again over the North Pole. And as the Earth spins under it, in fact, it can actually see the entire Earth all day as the Earth spins under -- there we go!

COSTELLO: Oh, there it goes, Chad!

UNIDENTIFIED MALE: The rocket carrying NOA-N. (INAUDIBLE) over land, over the ocean, in the atmosphere and into space.

MYERS: And then we run into clouds and that's about it.

COSTELLO: All right.

MYERS: You see 10 seconds.

COSTELLO: I'm waiting to see these fantastic pictures.

MYERS: Here's some infrared. You can see it a little bit better. But it did run into a little cloud bank. It may break through that cloud bank. The cameras have been backed up a little bit because they knew that cloud bank was there, Carol.

COSTELLO: That is cool.

How long will it stay up there, Chad?

MYERS: Well, hopefully a long time. I mean, literally, the usable life of this thing should be at least 10 years. They started doing these polar orbiters in this series back in 1978. The entire -- this is the 15th satellite now since 1978, so you can kind of do the math. Some of them aren't lasting as long as they'd probably like. You never know. You can get hit by space junk up there. There's all kinds of things up there in the atmosphere that these things could be hit by, and they start to lose their usable life. Their batteries or their bulbs burn out, whatever it might be up there.

But this is actually one of the better satellites. It's going to collect all kinds of atmospheric data for us now, not so much stuff like Earth global warming, but this is a day to day kind of mission for better weather forecasting.

Carol, we have these satellites that we use and they sit over the same place. As the Earth spins around, the satellite spins around. They're called GOS or Earth Orbiting satellites. The one, this one here is going to go around and around and around and the Earth is going to turn under it, so it's going to see the whole world in 12 hours.

COSTELLO: Fascinating information.

Thanks, Chad.

MYERS: You're welcome.

COSTELLO: We're going to take a quick break.

DAYBREAK will be right back.

(COMMERCIAL BREAK)

COSTELLO: Still to come on DAYBREAK, one high school student on a mission to change the way the Army recruits new soldiers. Evidence today that his efforts worked. We will talk to him live next.

DAYBREAK is back in 60 seconds.

(COMMERCIAL BREAK)

COSTELLO: And good morning to you.

From the Time Warner Center in New York, I'm Carol Costello, along with Chad Myers.

Now in the news, new information this morning on those two children missing from the scene of a triple homicide in Idaho. Investigators now say a man has been spotted with the two youngsters. They're alive and they do resemble Dylan and Shasta Groene. They were seen at a store in Montana with a tall man in a light colored, full sized van. Actually, I think that store was in Idaho. The van was spotted in Montana.

The International Red Cross says it had credible reports about U.S. personnel at Guantanamo Bay disrespecting the Koran. The group says it raised the issue with the Pentagon several times. The Red Cross says in 2003, the U.S. issued strict guidelines on how the Muslim holy book should be handled.

The Israeli military says its forces killed one Palestinian militant and wounded another this morning after the militants attacked a Jewish settlement in Gaza.

To the Forecast Center now -- good morning, Chad.

MYERS: Good morning, Carol.

We talked about Adrian, Hurricane Adrian yesterday was an 85 mile per hour hurricane, a category one. It moved onshore in El Salvador, not really a big wind maker. This is a flood maker, a flash flood maker and a landslide, mud slide maker for Guatemala, Honduras and El Salvador.

This storm, though, is really losing intensity now. You can see how it's getting torn up. Some of the remnants may end up in the Caribbean, but still not seeing -- not expecting any redevelopment as it gets into the Caribbean. The conditions just aren't favorable for it right now.

(WEATHER REPORT)

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