usairways which operates usairways shuttles has been optimistic about the strength of travel demand. >>> jet blue is changing its strategy, making a play for the first class or business class flyer. they plan to offer private suites and live flat seats on cross country flights. will it take off with travelers? >> reporter: the travel industry hasn't had a lot to celebrate the last few years, but to fight flat sales, airlines are introducing more flat seats where the money is, in business class. >> the business traveler continues to trend up. >> at the largest gathering ever, delta and jet blue unveiled new business class seats, it's the first business class ever for jet blue, this is one part of the airplane where sales are growing. >> that's prime money for the airlines. >> business travel in the u.s. is expected to grow 4.5% this year, to $273 billion. but the number two market, china, is expected to grow much faster and in fact double spending by 2017 over taking the u.s. as the number one market. >> you have major competition coming from the united states coming from the big carr

justice department is challenging the proposed merger of american airlines and usairways.he merger would create the world's biggest carrier. the department has filed a lawsuit to block the merger, saying it violates antitrust laws. attorney general eric holder said in a statement that passengers would end up paying higher air fares and have fewer choices. he also said ensuring robust competition in the market serves the best interests of consumers. american airlines is the country's third largest carrier. it went bankrupt two years ago, and has been undergoing business restructuring. american airlines and usairways, the fifth largest carrier, announced in february they would merge in late 2013. >>> lawyers representing a group of romanians say their clients haven't burned the famous paintings they're accused of stealing. the masterpieces are worth tens of millions of dollars. the heist occurred at a dutch museum last year. lawyers for the six suspects made the claim at the opening session of their trial in the romanian capital bucharest. the defendants are accused of steal

the justice department is creating turbulence for american and usairways.ncluding those from texas and arizona where american and usairways are based. one illustration of concern could be found at reagan national airport, where the resulting airline would account for 70% of all flights and control 63% of nonstop flights. that level of consolidation has passengers worrying about rates and routes. the airlines respond by saying, the merger would create more options for customers. i'm not holding my breath. it's because of the prior mergers that the usairways/american marriage would be challenged. this would create the world's largest airline, and we would be left with four airlines controlling 80% of the u.s. market for air travel. bigger rarely seems to be better. when i swap travel stories with friends and colleagues, no one seems to single out the giants for good service. more likely they'll reference jet blue, virgin, alaska airlines or even southwest. speaking of jet blue, that airline happens to lease half of its takeoff and landing slots at reagan from

usairways and america west. but is it good for passengers who now pay more for luggage, leg room, even sodas. >> the prices are no longer competitive, then i would be unhappy. >> if you're not providing the services, they're going to go to another airline. if you're not providing the routes, they're going to go to another airline. >> reporter: the government has approved airline mergers in the past, but it said this one was simply too big. and it says those previous mergers have provenhat too often the airlines hike fares and cut their routes. lester? >> and tom, this merger was announced just as american was slipping off into bankruptcy. so a lot of people are wondering tonight is a weakened american better off than perhaps to have this merger go through? >> reporter: you know, this is a business where it's survival of the fittest. clearly, if you lose an airline, if that ever became an eventuality, that would be bad news for customers also. the government finds itself walking a very fine line here between what

. >> la fusión entre usairways y american airlines fue impedida por el gobierno federal, la dempresa menor calidad y coibertura. >> buenas noches, estamnos en el pronóstico del tiempo y pueden seguir viendo las nereidas, lluvias de estrelñlas, temperaturas en la noche entre 54° y 57, estos son los próximos días,. >> ieú (información en pantalla) (información en pantalla) pásela bien y mucha suerte conj las perseidas, pida deseos, nos vemos mañana. >> ♪. >> ♪. >> muy buenas noches, estamos en acción deportiva, les aluda diana alvarado. >> el chepo de la torre festeja el apoyo que le dieron dueños de equipòs y directivos y se ve que irá con el chaco jimñénez desde el inicio mañana contra costa de marfil y reconoció sus errores. >> a vceces te tropiezas, te equivocas, pero debemos trabajar y mejhorar al respefto, pero méxico debe mejorar y clasificar sí o sí. >> en la casa delñas chivas benjamín galindo dice que no se va. >> estamnos en tiempo para revertir esta situación y tenemos con qué, si no viera la respuesta del plantel y ni así me iría. >> las selecciones de argentina e italia f

>> in the international space, usairways is very small.petitive in the international arena. american still does have london heathrow slots and along with british airways, their partner, dominates new york and london. so they are in a strong position short term. now united is big in that market and delta is taking steps with virgin atlantic to be big in that market. eventually they'd chip away at american's market share not only in the world but in the key new york/london mark slet. >> ray, i want to come back to the deal which could potentially fall through. if it does fall through it raises big question marks as to how amr could exit or how it could proceed with its restructuring and exit from the bankruptcy. who would lose out the most if -- are you as a creditor, would you be losing out the most or as a shareholder because i know that under this deal, shareholders would have receive someday 3.5% of the new group. >> well it appears neither the old shareholders or the creditors of american airlines would get as good a deal if american di

. >>> american airlines heads to bankruptcy court today to fight for their merger with usairways. american believes the department of justice got this one wrong. they say the suit ignored a number of benefits of the merger. >>> famous and fabulous. that describes you. facebook may have an app just for you. the world's vips. it's being tested and could soon give celebs an exclusive app to interact with their fans. >>> forbes annual look at the business of football is out. they list the top earning players in terms of salary and endorsements. drew brees is number one earning $51 million. aaron rodgers second at 49 and number three, tom brady with 38.3. joe flacco at $36.8 million. and rounding out the top five, peyton manning at a cool $30 million. in straight ahead, yanks alfonso soriano does something that lou gehrig and the babe never did. that and the rest of your sports next. >>> cowboys still tops there. let's get the latest in sports. team usa's record was in jeopardy, down 2-0 to bosnia. but what's my name? josie altadore, three goals in just the second half. usa with a 4-3

back in february, let me drag you back there, brian, when they announced this american airlines/usairways merger. $11 billion the price tag. a lot of chatter about how that was going to restructure the sector. i guess the question still remains, are we looking at higher airfares and less seats? they've looked into this story, "the wall street journal," and interesting. they say maybe it doesn't go that way because this was a deal about expansion, not about cutting capacity. so the conclusions ultimately it may not cost the consumer more in terms of air ticket prices. so i guess that's not bad news. facebook coming up with a new app. they've sat down with open table so you can now go through facebook to book a table at your favorite restaurant as long as it's part of the open table service. i guess that makes life a little bit easier if you are on your facebook page and you are just thinking, huh, i could do with going somewhere decent for lunch to talk about a new business plan. facebook putting that deal together with open table. i guess they'll also be able to use this new app facility

and usairways, and the airline sector getting hit because of the doj filing a lawsuit presented by thesix days and the district of columbia to block the this merger, less complication would be higher fees. and these stocks. charles: children's clothing company finding a whole new way to connect with customers, facebook. they're using facebook to sell their product and connect with -- and daniel revenues attracting big-name investors including a 0 l and steve case, the founder it joins the company now. and there was a while when everyone was making money on demand people selling things trying to do things, and take advantage of facebook. >> that is the first thing have to say it wasn't planned this will happen to be an facebook making that connection with customers and starting that dialogue. and had some things i wanted to move, i have been selling on ebay only and paypal voice if everyone is interested. and everything sold and the first moments of what just happened here. charles: what happens to the ebay business. did you stop doing that? and should ebay be watching this? >> we did.

there was an unspecified threat apparently by phone that forced this usairways plane you see now to behe runway at philadelphia international airport. you can see passengers and their baggage are now being removed from the plane, before they all have to be rescreened, we're told. the nature of that threat is still unclear this hour but we will bring you more on this incident in philly, as soon as we have it. >>> a hotshot firefighter who died with 18 others battling that arizona wildfire, leaving behind a wife and four children. now, his widow is fighting a new battle after being denied special survivor benefits. fox's trace gallagher is live in los angeles. how is this happening, trace? >> this is a major setback not just for her and her family, ali, but a lot of the families of firefighters who died back in june, the granite mountain hot shots, 19 of them. turns outdoor only six of them were actually full-time employees. her to 12 were considered seasonal or part-time employees which means their families are not eligible for salphorfor salg term health benefits. this family has four

the usairways flight is now being isolated on the runway at philadelphia international airport.e shot for you coming from our local affiliate. crews are preparing to remove and screen both passengers and their baggage. this threat was reportedly received by phone but the nature of it is still upclear at this hour. we will bring you more as soon as we get it. >>> meanwhile, finger-pointing after a massive fire guts east africa's largest airport. flames engulfed the arrival hall at kenya's main international airport. the fire burned for hours before it could be contained. just last month it was reported the local firehouse did not have a single working fire engine. government officials now say a poor response allowed a small fire to grow into that massive inferno you see. >>> new developments in the court-martial of the accused ft. hood shooter, the man who admits he pulled the trigger continues to speak freely in his own defense almost as soon as some of his victims finished their testimony yesterday they were told they were no longer allowed to speak publicly about the case. why

the justice doesn't filed a lawsuit to block a proposed merger between mesh and usairways.e justice attend claiming it to kurt our wallet. the lawsuit states: millions of passengers benefit each year from head-to-head competition that this merger would eliminate. the two airlines responds with a joint statement that reads in part: blocking this procompetitive merger will deny customers access to a broader network with more choices. sir, your take on this. >> this all sounds good, very econ 01, but the doj is wrong. there's very little overlap on these carriers. the major winner is sherwin williams repainting airplanes. i don't like mergerses but in most cases -- there's not one community that will go down to one airline as a result of this. in reality several communities will benefit. >> shepard: then what you're saying is this is different from, let's say, delta and northwest. delta and northwest had a lot of overhap laps, -- overlaps, delta promised after that merger memphis will not by affected. delta either lied or changed their mind after telling the truth. because mem

. >> well, it seems the usairways/american airlines merger is in a bit of trouble.ene marsh. what's happening? >> that's right, carol. we're getting this information from our department of justice correspondent, evan perez, down at the department of justice at this moment. we just got our hands on the complaint, and in it, it says that the justice department and attorneys general from six states and the district of columbia filed a lawsuit, challenging the $11 billion merger of american airlines and usairways. now, the airline merger would create the world's largest airline. but the lawsuit says it would substantially lessen competition for commercial air travel. so the top concern really is those local markets. the justice department said, for example, right here in washington, d.c. area, the national airport where the combined airline would control 69% of takeoff and landing slots, and 63% of the routes out of national. so that becomes the issue. just monopolizing a local market. so, again, that is the breaking news here, carol. we are still going through all of t

why the government is stopping usairways and american on the runway.a, our medire agens sit down with you and ask. being active. and being with this guy. [ male announcer ] getting to know you is how we help you choose the humana medicare plan that works best for you. mi familia. ♪ [ male announcer ] we want to help you achieve your best health, so you can keep doing the things that are imptant to you. taking care of our customers. taking care of her. and the next thing on our list is bungee jumping. [ male announcer ] helping you... now that's what's important to us. [ male announcer ] helping you... you need a girls' weekend and you need it now. ladies, let's goo vegas. cute! waiter! girls' weekend here! priceline savings without the bidding. >> neil: the merger between american and user air does u.s. air not going to fly. doj saying the deal would result in higher prices and less service. lori agrees, jim does not. you think this is a bad idea. >> i think the combo is a fine idea. i understand why the doj is doing it. it's politics. it mostly fakes

american airlines mired in the law right now, because american and usairways want to merge.t in a slew of states said not so fast, jet airliner. richard quest is going to join me in a moment with details in only a way that mr. quest can deliver. i cannot wait. are you flo? yes. is this the thing you gave my husband? well, yeah, yes. the "name your price" tool. you tell us the price you want to pay, and we give you a range of options to choose from. careful, though -- that kind of power can go to your head. that explains a lot. yo, buddy! i got this. gimme one, gimme one, gimme one! the power of the "name your price" tool. only from progressive. >>> richard quest is a very busy pan and comes to us about the justice department filing an anti-trust lawsuit. richard, you been on this story and this be was not something that these parties expected the justice department to do. >> no, they did not. this is a deal. they're hoping to close this transaction to do the merger by the end of this month of august. they've had approval from the european and they were waiting for two things

the alliance stock continued to died today after the justice department blocked the merger between usairwayss watching those stocks. >> these stocks really, down 14%. cutting to neutral u.s. airways, you will see the decline. at stock is up 1/2% but the airlines, really tough week. >> there is a production snafu on the new hundred dollar bill, costing taxpayers millions. just another example, and less waste in d.c.. joining us is the former economic adviser to ronald reagan. >> the printing press company was guaranteed to make money. just what i was afraid of. and this is the best you could do. >> they should let these guys go and beat people with a money. perez good is the crux. you can't make a. connell: people print the money can't even print the money. >> what would really, and one day badly they will become collector's items and make all the money they wanted to and selling collectors' items. connell: these to collect baseball cards and the ones with the mistake around them. and the guy who had the bat on the wrong side. i want to talk about the economy and just when we were coming on t

if you look at usairways, up by 4%. american and u.s.to merge and the justice department is saying this would be anti-competitive. the justice department's set a trial date for march 3rd airlines are saying that is too late. separately, the american airlines recently said there is no plan b for american which is in bankruptcy protection of the deal does not go through. connell: thank you very much. this morning the german chancellor angela merkel called on russian president vladimir putin, united nations security council discussions for what she described as a quick unanimous international reaction to the alleged use of chemical weapons in syria. vladimir putin already said no military force should be used against syria. you have this back and forth -pgoing on and people wonder wh will step up and be the real leader in this situation? is there another winston churchill out there? the great leader from world war ii? neil cavuto is managing editor of fox business and is there another church allowed there? dan henninger with year earlier an

. >>> usairways says we will fight them. how is this going to play itself out?s year. probably next year. it doesn't say the merge he is not going to happen. it may be completely reconstructed. now, the horse trading begins. now, america and u.s. air will go back to the justice department and say okay what will it take? what do we have to give up? what routes what cities. and then an assemblage o >>> there is a new kind of tv that let's two people watch different shows on the same screen at the same time. as you can see, i'm on it right now. we asked cnn's brian cooley if this is a game changer in tv viewing >>> all that mattered in 2003 50 million people lost something very powerful. do you remember what happened? the answer is next on "cbs this morning." answer's next on "cbs this morning." [ greg ] i like to golf all morning. that's why i eat belvita at breakfast. it's made with delicious ingredients then carefully baked to release steady energy that lasts. we're golfing now, buddy! i got it! belvita. steady energy. all morning long. [ female announcer ] and

. >> american airlines and usairways preparing to fight a government lawsuit aimed at keeping them fromtment says the $11 billion deal would hurt competition and force passengers to pay higher fees. representatives from both companies insist the fares won't change much. >> diet soda sales declining. coca-cola running its first ad defending artificial sweeteners. and its safety. tout the scientific evidence that the active ingredient known under the nutrasweet brand is not harmful. the ad will appear in newspapers today in the atlanta area. >> talk about hitting it big. really big. the lottery winners, oceans 16 have come forward. >> from ocean county, new jersey. hence the name. government workers won a third of last week's massive powerball prize. after the taxes they will each take home $3.8 million. the 16 employees of a vehicle maintenance facility seem to have different plans for their newfound wealth. >> i look again. i'm like, no. i immediately started shaking. staring at it. didn't know what to do. >> just a miracle. shocking. after 34 years and almost retiring last year. this h

usairways five to seven days to respond to your request for somebody to talk to you about a fare complaint to fly. the friendly skies no more. >> christine romans, people's advocate, human fine print, i love it. >> no one has called me that before. >> it's a compliment. >>> coming up next on "new day" peta posts a video of a dolphin they say jumped out of the tank and on the cement and the latest ing a string of controversies for the park. what sea world is saying about it this morning, straight ahead. "first day of my life" by bright eyes you're not just looking for a house. you're looking for a place for your life to happen. >>> oh, a bonus today. you get two must-see moments. two. this is so cool. an a guy in iceland pulling off a pretty rad trick. you ride one skateboard and does a perfect backflip. he apparently nailed it on his second try. not too shabby when you consider professional skateboarders have trouble doing this. here is the good thing we want to point out for all the parents at home. where is your helmet? >> fair point. fair point. little bit of ice water on the situation

in a letter, tom horton says we are still focus on completing that merger with usairways. a november trial date. american team is standing strong together with us airways to get this merger closed. say together public and creditors and everybody else, we're going to be fine if we don't do the deal. of course we still want to. we'll see. it's going to be very difficult for them to win. >> right. >> $500 round trip coach to cleveland to new york and pack planes and lines. >> 1,000-round trip to dayton, ohio. >> ohio they've lost a lot of service. a few months ago, you've made a big switch, i remember, four, five months ago you said for the first time in your career you are recommending -- a great call. look at charts. every stock's up. i wonder how you feel. >> as soon as i saw the blog, it's not as good as i like going forward. it's crucial that deal occur. i thought the justice was going to let this -- going to rubber stamp, because they rubber stamps all of the others, they didn't this one. i called on the group. it was shocking to me. we have to shift to bonds and the do

american airlines and usairways are asking for a november 12th trial date as they find the justice departmentged their proposed merger. would apply 90 days before the trial begins. they have requested a 180 day period. the airlines say that will be far larger than other trials. matthew martoma faces expavended charges in an insider trading scheme a. rewritten indictment says he tried to get more than 20 doctors to provide information on a secret clinical trial. ambitious. he succeeded with at least two. he has pled not guilty to conspiracy and fraud and scheduled a court appearance this morning, in fact. in what some might consider a sign of the times. jack daniel's maker is build agnew $100 million distillery at its tennessee plant. growing demand for its flagship whiskey. it will increase production 15-20%. global sales of the jack daniels brand rose 9% last year. it's the first all new distillery for the company since prohibition. we're talking about regulation gun laws. >> they built other distilleries. >> prohibition? >> since prohibition. >> andrew has it going. all three indexes ended