American Airlines, US Airways announce merger

After a nearly yearlong courtship, the union became official Thursday: American Airlines and US Airways have formally announced plans to merge.

An early morning announcement by the airlines confirmed reports widely circulated after boards of both companies approved the merger late Wednesday.

The move brings stability to one of Miami-Dade County’s largest private employers more than a year after the airline and its parent company filed for bankruptcy, leaving the fate of thousands of employees — and the largest carrier at Miami International Airport — in question.

According to the Thursday announcement, the deal was approved unanimously by the boards of both companies, creating the world’s biggest airline with implied market value of nearly $11 billion, based on the Wednesday closing price of US Airways stock. The airline will have close to 100,000 employees, 1,500 aircraft, $38.7 billion in combined revenue.

The deal must be approved by American’s bankruptcy judge and antitrust regulators, but no major hurdles are expected.

Travelers won’t notice immediate changes. The new airline will be called American Airlines. It likely will be months before the frequent-flier programs are merged, and possibly years before the two airlines are fully combined. The new airline will be a member of the oneWorld airlines frequent flier alliance.

And for Miami travelers, it’s unlikely that much will change at any point. American and regional carrier American Eagle handled 68 percent of traffic at the airport last year, while US Airways accounted for just 2 percent. American boasts 328 flights to 114 destinations from Miami.

“We don’t expect any substantial changes at MIA if the merger occurs because our traffic is largely driven by the strength of the Miami market and not the airlines serving it,” said airport spokesman Greg Chin.

American has said for more than a year that its long-term plan calls for increasing departures at key hubs, including Miami, by 20 percent. That pledge has already started to materialize; in recent months, the airline has added new service to Asuncion, Paraguay and Roatán, Honduras.

During its bankruptcy restructuring, about 400 American employees lost jobs, leaving American and its regional carrier, American Eagle, with 9,894 employees in Miami-Dade County and 43 in Fort Lauderdale. US Airways has few employees in the area.

“It really isn’t going to affect Miami in a very major way anytime soon,” said Michael Boyd, an aviation consultant in Evergreen, Colo. “Only because US Airways isn’t a big player in South Florida.”

At Fort Lauderdale-Hollywood International Airport, American and US Airways combined would still only be the fifth-largest airline after Southwest, Spirit, JetBlue and Delta, a spokesman said. The two airlines have little overlap in routes from Fort Lauderdale.

Despite the lack of major changes, Boyd said the merger would be a good development for Miami.

“It should be positive for the employees and it should be positive for the communities that the airlines serve,” he said.

Robert Herbst, an independent airline analyst and consultant, said US Airways will add a “significant amount” of destinations in the Northeast, including Philadelphia and Washington, D.C.

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Key West’s ‘Scrub Club’ reportedly scrubbing debit cards of adult-entertainment clients

Key West has a long-held reputation as an anything-goes party town that tolerates -- and in many cases facilitates -- an array of bawdy pastimes.

A stroll down Duval Street yields strip clubs, clothing-optional bars and establishments catering to alternative lifestyles. But the Adult Entertainment Club, formerly and colloquially known as the Scrub Club, at 1221 Duval is different.

In the 765-day period between Jan. 1, 2011, and this past Feb. 4, Key West police logged 301 calls related to the Adult Entertainment Club -- that's a call every 2.5 days, a staggering number for an 800-square-foot place in a neighborhood otherwise populated by cafes, wine shops, boutiques and art galleries.

The main complaint: Unauthorized use of customers' debit or credit cards, often to the tune of thousands of dollars.

The club's website, signs and brochures offer scantily clad women available for "bachelor parties, fantasy and fetish shows, nude snorkeling, nude parasailing [and] divorce parties." It offers "free shuttle and 24/7 escort service."

But the voluminous police reports, along with a long trail of Internet posts, message-board threads and complaints with the Better Business Bureau of Southeast Florida and the Caribbean, paint a far different picture of what goes on inside. But barring specific complaints, the Key West Police Department has no plan to take a closer look.

The pattern is usually the same:

It's late at night and an intoxicated man steps inside, where he pays an entrance fee, usually more than $100. That begins a conversation with one of the female employees, described on the business website as "classy and sophisticated," leading to a private room.

From there, it's not clear what goes on other than the price goes up, the man supplies his debit card and personal identification number to the woman -- he's generally nude at this point -- and she leaves the room. Later on, the man notices unauthorized charges on his card and contacts police.

Case in point: On Feb. 4 around 2 a.m., a Russian tourist who told police "he had been drinking" went into the club and agreed to pay $100, according to a report prepared by Officer David Fraga.

"While in the club [the tourist] said he gave his ATM card to one of the employees along with his PIN." Four hours later, "He saw there was a total amount of about $2,500 charged on his card."

Fraga told the man to "go to the business and fill out a complaint form for the issue."

A few days earlier, on Jan. 31, a man from St. Johns, Fla., called police to report that on Jan. 26, when he was in town visiting, he went into the Adult Entertainment Club and "agreed to pay $200 with one of the females working on this date for sex," according to a report prepared by Officer Tricia Milliken.

He also said he agreed to tip the female $100 prior to the services being rendered and gave her his Visa debit card and PIN. He "stated he expected sex from the female and she would not give him what he expected, so he got dressed and left the establishment."

When he returned to St. Johns, he said he realized his card was charged $1,000, not $100. Milliken provided him with a case number.

Police spokeswoman Alyson Crean said the department has heard the Adult Entertainment Club is about more than just "entertainment," but that the department focuses its attention on higher-priority initiatives like dealing with aggressive vagrants drinking and panhandling on city streets, and quelling drug dealing.

"We do not get complaints of prostitution," she said via e-mail. "Certainly there are intimations and innuendoes that this activity may be occurring. That being said, without any complaints, there are other, higher priorities set by the community and by the department."

"Look at the issue of vagrancy and panhandling. A task force made up of business owners, residents and even the mayor has told the department that the community will not tolerate certain behaviors, and we have four quality-of-life officers dedicated to seeing that priority is addressed."

"Getting drug dealers off the streets is another issue that the community has made very clear is a top priority for our city. Same thing with reducing incidents of burglary. So in those terms, I would answer that there is no specific enforcement strategy for this business."

The city's Code Compliance Department has been more proactive, fining the business $500 last year after investigating offsite promotional and solicitation activity. Basically, club employees would park their advertisement-emblazoned vehicle in other parts of Old Town and hand out brochures for the business in violation of code.

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Oscar Nominees Before They Were Famous

As hard as it may be to believe, Oscar nominees Bradley Cooper, Ben Affleck, Jessica Chastain, Anne Hathaway and Jennifer Lawrence were once fresh-faced actors itching for their big break in the biz.

Pics: Star Sightings!

Click the video to see the five stars (before they became famous) in their very first on-screen roles!

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In weekly audience, Pope Benedict XVI says he's resigning for 'the good of the church'

VATICAN CITY — Looking tired but serene, Pope Benedict XVI told the thousands who gathered for his weekly audience that he was resigning for "the good of the church" — an extraordinary scene that unfolded in his first appearance since dropping the bombshell announcement.

The 85-year-old Benedict basked in more than a minute-long standing ovation when he entered the packed hall for his traditional Wednesday catechism lesson. He was interrupted repeatedly by applause, and many in the audience of thousands had tears in their eyes.

A huge banner reading "Grazie Santita" (Thank you Your Holiness) was strung up at the back of the room.

REUTERS

Pope Benedict XVI blesses at the end of his Wednesday general audience at the Vatican today.

Benedict appeared wan and spoke very softly, but his eyes twinkled with joy at the flock's warm and heartfelt welcome. He repeated in Italian what he had told his cardinals Monday in Latin: that he simply didn't have the strength to continue.

"As you know, I have decided to renounce the ministry that the Lord gave to me on April 19, 2005," he said, to applause. "I did this in full liberty for the good of the church."

He thanked the faithful for their prayers and love, which he said he had "physically felt in these days that haven't been easy for me." And he asked them to "to continue to pray for me, the church, and the future pope."

The atmosphere was festive and warm, if somewhat bittersweet, as if the faithful were trying to persuade Benedict to stay with them for just a bit longer. A chorus of Italian schoolchildren serenaded him with one of his favorite hymns in German — a gesture that won over the pope, who thanked them for singing a piece "particularly dear to me."

"He gave us eight wonderful years of his words," Ileana Sviben, an Italian from the northern city of Trieste who couldn't hide her sadness. "He was a wonderful theologian and pastor."

The Rev. Reinaldo Braga Jr., a Brazilian priest studying theology in Rome, said he too was saddened when he first heard the news.

"The atmosphere was funereal but nobody had died," he said. "But then I realized it was a wise act for the entire church. He taught the church and the world that the papacy is not about power but about service."

It was a sentiment the retiring Benedict himself emphasized Wednesday when he told his flock that the "path of power is not the road of God."

The audience included groups of nuns waving papal flags, and among the clerics, US Cardinal Bernard Law, who resigned as archbishop of Boston at the height of the clerical sex abuse scandal in the United States.

Benedict is the first pope to resign in nearly 600 years, and the decision has placed the Vatican in uncharted waters: No one knows what he'll be called or what he'll wear after Feb. 28.

The Vatican, however, has made it clear that Benedict will play no role in the election of his successor, and once retired, he will be fully retired. He plans to live a life of prayer in a converted monastery on the far northern edge of the Vatican gardens.

As a result, Benedict's final public appearances — his last general audience will be Feb. 27 — are expected to draw great crowds, as they may well represent some of the last public speeches for a man who has spent his life — as a priest, a cardinal and a pope — teaching and preaching.

And they will also represent a way for the faithful to say farewell under happier circumstances than when his predecessor, Pope John Paul II, died in 2005.

"We were just coming for vacation, and now we are getting all of this!" marveled Terry Rodger, a tourist from New Orleans as he headed to the audience. "I am very excited. I'm surprised."

The audience was the start of a busy day for Benedict: he will also preside over Ash Wednesday services later in the day to mark the official start of the Catholic Church's solemn Lenten season. The service is usually held in a church on Rome's Aventine hill, but was moved at the last minute to St. Peter's Basilica. The Vatican said the shift was made to accommodate the crowds, though it will also spare the pope the usual procession to the church.

The Vatican insisted no serious medical ailment was behind Benedict's decision to retire, though it admitted for the first time on Tuesday that Benedict has had a pacemaker for years and recently had its battery replaced.

The move sets the stage for a conclave of cardinals by mid-March to elect a new pope.

"It is the perfect occasion to give a cordial and affectionate goodbye to this pope who has given us a great example of courage, humility, inner honesty, and a great love for the church," said Monsignor Claudio Maria Celli, head of the Vatican's communications office.

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Marriott skyscraper coming to old Miami Arena site?

Is a massive new skyscraper coming to the site of the old Miami Arena?

Two of the city’s top real estate blogs caused a stir Tuesday when they shared an architect’s video rendering of a huge tower called the Marriott at MWC. The video posted on YouTube by Nichols Brosch’s Igor Reyes was a computer-generated aerial shot of a potential mixed-use complex superimposed on the site. The land is owned by the developers of the proposed Miami World Center, a stretch of lots last recently positioned as a possible home to a Las Vegas Sands casino.

ExMiami .org posted the video first, followed by Curbed Miami, at miami.curbed.com. “If this is an actual thing, and not just an architect's dream, then this is biiiiig news,” Curbed wrote. Shortly after the posts, the Reyes video was made private. Nichols Brosch did not immediately respond to an interview request.

Representatives of the Miami World Center group, which includes Art Falcone and Nitin Mitwani, declined to comment, a spokeswoman said. The old arena site was turned into a park and then sold to the Miami World Center group last year. Marriott spokesman John Wolf said Tuesday: “We are always interested in development opportunities. It would be premature to comment any further.”

DOUGLAS HANKS

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Miami-Dade police officer stabbed during prisoner transport near Dallas

Authorities are looking for an escaped prisoner who reportedly stabbed a Miami-Dade police officer outside a Walmart in Grapevine, Texas.

Alberto Morales, 42, was being taken to Las Vegas for a court appearance when officers stopped at the store just outside of Dallas, around 11 p.m. Monday according to reports from NBC6.

Texas news stations are reporting the officers and the suspect decided to drive to Las Vegas from the Dallas-Fort Worth airport. During a “pit stop” at the Walmart, the suspect grabbed a sharp object and stabbed one of the accompanying officers in the back.

The unidentified Miami-Dade officer was taken to Parkland Hospital where he underwent surgery and is expected to recover, according to reports.

Morales was wearing a belly band with his hands shackled to it at the time of his escape. Police said he may still be in shackles.

This report will be updated with more information.

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Jillian Michaels Talks Dieting Myths, Return to 'Biggest Loser,' Motherhood

Having been immersed in fitness and exercise world for over twenty years, Jillian Michaels has heard it all when it comes to dieting. With the array of conflicting information out there, the Biggest Loser trainer discredits some of the most common myths about dieting.

"I hear so many thing out there that are just ridiculous: 'I eat small meals,' 'I fast two times a month,' or 'I've cut out carbs,'" said Michaels, who recently returned to The Biggest Loser. "I hear all this stuff and none of it's accurate. In fact, a lot of it will do harm to your metabolism."

PICS: Adorable Tots: Celebs and Their Cute Kids!

Michaels has published a series of books and DVDs on healthily maintaining one's fitness in her career as a physical trainer, and has now published another book, Slim for Life: My Insider Secrets to Simple, Fast, and Lasting Weight Loss.

In the book, Michaels sets the record straight on widespread dieting fallacies and gave a few examples to ET in her interview.

"For example, eating small meals throughout the day [is] one of the absolute worst things you can do for your metabolism. The goal is to eat...four meals every four hours," she clarified. "Cleansing and fasting: another horrible thing you can do to your metabolism. [It] makes the body store fat. You cleanse the body by eating clean food, not by fasting your system."

RELATED: Jillian Michaels Becomes Mother of Two

Michaels has brought her fitness expertise back to The Biggest Loser this season after departing after the show's eleventh season in 2011. She explained why it was a good time for her to come back.

"The first part is [that] both my kids are home and that whole process and journey of literally creating was a two-year endeavor," she said, mentioning her business endeavors as an important part of decision-making process as well.

"...Being a mom, with the show choosing to take a stand on childhood obesity and this being an issue that I'm very passionate about...having this platform to get out a message and information to empower our youth is something I could not pass up."

RELATED: Jillian Michaels Returning to 'The Biggest Loser'

Watch the full interview to hear Michaels talk about motherhood and preview some of the fitness tips in her book, Slim for Life, which is now in stores.

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No visit from plows leaves some Suffolk residents stuck in homes

VICTORALCORN.COM

Residents of the community off of Kensington Gate Road said they had all called Town of Brookhaven phone lines repeatedly and were told to leave messages or send e-mails.

It’s the land the plows forgot.

Infuriated residents of an eastern Suffolk County neighborhood remained stuck in their homes yesterday after failing to get even a single visit from Town of Brookhaven plows.

The sole road leading into and out of the cluster of roughly 200 people off of Route 112 in Coram was still impassable yesterday evening as desperate residents were forced to trudge across massive snowdrifts to buy basic necessities from distant stores.

“This is the cycle on Long Island,” said seething New Jersey Port Authority worker William Cendales as he trembled in knee-deep snow. “If it’s not LIPA getting you with Sandy, it’s the Town of Brookhaven not plowing your streets.”

Cendales braved the ice to give his shivering Yorkie a bit of fresh air yesterday. “This is beyond disgusting,” he said. “I can’t go to work, I can’t do anything.”

City school teacher Jachan Watkis said that he was forced to abandon his car on a street near his home during the storm because the entrance lanes to his development had not been plowed. Watkis, who has three small children with his wife, Shelita, said that he ran out of heating oil — and that delivery trucks are unable to get to him. “We’re living on two space heaters,” he said. “And I still haven’t seen a plow,” he said.

“I came outside and a plow that was clearing the main road just pushed it out of the way and damaged it,” he said. “Now I come out to see if the car was okay and they just towed it away! This is getting ridiculous.” All that remained of the abused vehicle yesterday was a running board that had broken off.

“First I couldn’t get the car to my house,” he said. “And now I can’t get the car.”

Residents of the community off of Kensington Gate Road said they had all called Town of Brookhaven phone lines repeatedly and were told to leave messages or send e-mails.

A link at the Town’s Web site urged residents to send e-mails alerting them to streets that required plowing. But neighborhood residents said they abandoned that course of action after the first two days of inaction.

“My father is on oxygen in my house,” said cable technician Daniel Murphy. “If there’s an emergency, these ambulances can’t get through. It’s unbelievable.

“They forgot about us over here. Forget about calling or whatever. We just gave up.”

Kenneth Tax, an operations manager at Farmingdale State College, said that he pays nearly $9,000 annually in property taxes — but can’t get out of his own driveway because of the plow disappearance. “I’m trapped on my own street,” he said. “We all are.”

Capenter Laborde, a technician at JFK Airport, was forced to abandon work today after being unable to leave his block. “Of course I expected to get plowed,” he said. “It’s been three days and not one! I see them drive by, they just keep going.”

A Town of Brookhaven plow-truck operator refused to comment when asked about the forgotten island of ice just down the block from him. “We’re getting to everyone,” he said before rumbling off in the opposite direction.

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U.S. Century to OK details of new deal

U.S. Century Bank is expected to sign off on Monday on its letter of intent — the framework for a plan to recapitalize the bank.

Under the deal, a local group of investors, led by Jimmy Tate of Tate Capital and Sergio Rok of Rok Enterprises, will bring in fresh capital and wipe out the Doral bank’s bad loans, while allowing it to operate independently.

The investor group is expected to inject $50 million in capital into the bank, becoming majority owners. In addition, the group will pay about $90 million to buy certain loans, including all $98 million of U.S. Century’s non-performing loans, said U.S. Century President and Chief Executive Carlos J. Dávila. The deal would also provide for a negotiated amount to be paid to the federal government to repay U.S. Century’s $50.2 million in TARP funds.

A definitive agreement, based on the letter of intent, is expected next month. Pending shareholder and regulatory approval, the deal could be completed by mid-year, Dávila said.

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With millions at stake, tutoring lobby goes into action

Second of two parts

Every year for nearly a decade, private tutoring companies have made millions in Florida because the federal government required school districts to hire them.

That was in danger of changing last February, when the state won freedom from mandated private instruction for poor children in the state's worst schools.

But the tutoring industry wasn't letting go without a fight.

At the end of last year's legislative session, Florida became a key target as the tutoring lobby battled to retain funding.

The effort paid off in March, when state lawmakers quietly voted to keep the money flowing.

The moment marked a major victory for the tutoring industry, but, as the Tampa Bay Times reported on Sunday, it also ensured the survival of a program that is shot through with cheating, opportunism and fraud.

In tracing the new law from the agenda books of a special interest group to the pages of state statutes, the Times reviewed public records and interviewed legislators, lobbyists, education officials and advocates.

It found that the push to fund tutoring in Florida was part of a national campaign by the industry, an undertaking that failed in other places but succeeded in Tallahassee.

To save tutoring, the industry formed a nonprofit group that sold the effort as a civil rights struggle, spent $2.4 million on campaign contributions and lobbying fees and pushed legislation in states across the country.

In New York and Maryland, tutoring companies and their lobbyists battled fiercely for a law requiring funding and still made no headway.

In Florida, all it took was a phone call.

Rallying support

By the summer of 2010, midway through President Barack Obama's second year in office, tutoring companies that had thrived on government contracts knew they were in trouble.

Industry groups were expecting the administration to gut requirements for private tutoring, known as supplemental educational services, that made up a key part of President George W. Bush's education reform act, No Child Left Behind.

What the industry needed was a campaign to rally people who otherwise might not show support. The solution? Defend subsidized tutoring as a civil rights cause.

Steve Pines, head of the Education Industry Association, previewed the strategy in a PowerPoint presentation for tutoring companies in June 2010. His organization, a trade group for for-profit education businesses, would spend $1.5 million to help launch a nonprofit called Tutor Our Children.

The new organization would hire lobbyists, create a pro-tutoring website and encourage parents to flood public officials with support for mandated tutoring, all while positioning the campaign as a fight for civil rights.

It cultivated ties to the Urban League of Greater Miami and the United Farm Workers of America. In April 2011, it organized a panel discussion in Washington called "Waiving Away Education Civil Rights."

In October 2011, Tutor Our Children announced it had hired a spokeswoman, Stephanie Monroe, a Washington lobbyist who formerly served as assistant secretary of education for civil rights in the Bush administration.

About a week later, Monroe testified in a Senate hearing on the organization's behalf.

The same day, the group posted on its website a photo of the Martin Luther King Jr. Memorial in Washington, D.C. It showed an inscription — a quote from King — that reads in part: "Commit yourself to the noble struggle for equal rights."

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