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 protection, 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. The process is expected to take about six months, according to a letter sent to employees Thursday by American CEO Tom Horton.

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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Kendall teen shot inside home; rushed to hospital in critical condition

A Kendall teen is in critical condition at a local hospital after being shot at his home Wednesday afternoon.

According to Miami-Dade police, they were to a home near Southwest 118th Avenue and 99th Street at about 5 p.m. after reports of shots fired.

When they arrived, they found a 13-year-old boy had been shot. The teen was rushed to Miami Children’s hospital and is listed in critical condition.

Inside the home at the time at the shooting were three juveniles and one adult. No arrest have been made

The cause of the shooting is still under investigation.

This story will be updated when more information is available.

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Artists You Should Know: Emeli Sande

British recording artist and songwriter Emeli Sandé is already making waves in the UK and hopes to become the latest in a growing list of British musicians that have taken over the world in recent times. Her debut album Our Version of Events is the UK's biggest selling album of 2012 and with her lyrically rich songs powered by an incredible voice, I have no doubt she is the next Global superstar. I recently chatted with Emeli before her gig at the ChapStick Sessions Concert in partnership with MySpace. Check out our full interview below and be sure to watch the concert footage above for a special performance of her latest single, Next To Me.

PICS: Candid Celeb Sightings

ETonline: You are one of music's rising stars, have a number one album (UK) for Our Version of Events, sang at the open and closing of the Olympics, and a new hit single Next To Me, how has the ride to fame been for you?

Emeli: It definitely feels surreal. It's been an incredible year and so much has happened that I didn't expect to happen so quickly. It's definitely been the type of year that you dream about as a kid so I'm very happy.

How much would you say your life has changed?

Dramatically it's definitely changed a lot. But I try to keep grounded by just focusing on the music so that part hasn't changed. But day to day it's so busy and you have less and less time to have alone and to write but it's all good that's why you do it in the first place.

A lot of wonderful talent has emerged from the UK in recent years so I've got to ask you, what's in the water over there??

(Laughs) Yeah I'm not sure! It feels like a really good time and I'm really proud to be part of this kind of new generation of musicians that are doing something quite creative. I think we all feel kind of free to experiment with different genres and it's such a small place so we all know each other and can learn from one another.

Tell me about your writing process. Are certain types of songs more easily driven by a lyric or music?

Sometimes when I play something on piano, the tone of it can inspire a feeling. But usually it's a concept that will pop in to my mind or a phrase or if I'm reading something it will spark something or a different way of thinking about the same subject. Usually it's the words but sometimes when I sit at the piano it all falls into place.

What would you say is your favorite lyric you've ever written?

I really like "when the floor is more familiar than the ceiling," just because whenever I sing that lyric I imagine somebody stuck to the floor, someone stuck to the ceiling. I've always been inspired by people that can make you see things so clearly with few words. And that's what I try to channel when I'm writing.

Is there any artist you're hoping to collaborate with in the future? Who are you currently listening to?

I think Drake is amazing lyrically; he's really doing something different I think. I love Frank Ocean as well. There's a lot of new people too, Ed Sheeran ... there's a lot of people I think are great. I love Rihanna, everyone does, and I think what she's doing is very honest and I really respect that.

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Share and share alike

Several friends and I are renting a ski house this winter. Although most have been good about keeping things tidy, two of my girlfriends are absolute slobs. How do I get them to clean up their act? —Lorna B., Long Island City, Queens

Isn’t it amazing what you can learn about people you think you know simply by spending some time together under the same roof? I’ll bet while you’re grumbling about these messy Bessies, they’re complaining to anyone who will listen that you’re uptight.

You could probably ease up on these two if the areas in question are their own rooms — as long as the messes don’t creep into the space of others (or attract critters). The same cannot be said for common areas like the kitchen, bathroom and living room, where everyone shares responsibility for keeping things pristine.

In private, have a gentle-but-firm conversation with the offenders. Your goal should not be to embarrass, but to convey the importance of maintaining a tidy quality in shared living spaces. They might not become “cleanliness is next to godliness” converts, but even their grudging cooperation will mean a more enjoyable environment for everyone else.

I’ve put together a great ski house in Vermont for Presidents Day weekend, but one member of the group pulled out at the last minute due to a work emergency. He’s now asked me to find someone to take his place. Shouldn’t he be the one to find a substitute? — Arthur D., Englewood, NJ

Ah, the joys of organizing a group getaway. You find the house, negotiate a rate, find the right mix of people, sign a lease, send a deposit and then, just when you think your work is done, someone drops out and dumps the responsibility of finding a replacement on you.

Work emergencies happen, of course, and his coming to you first was the right course of action. For all he knew, you had a waiting list of friends eager to join. However, at this stage, I’m guessing you have neither the time nor the desire, and you’re fully within your rights to expect the canceler to find his own understudy.

If he’s unable to come up with another person at this late date, he must be prepared to pay the full share amount. Under no circumstances should his work crisis become your monetary one.

We’re invited annually to spend a weekend in the Catskills with friends who own a ski house. They’re always so generous, but refuse our offers to take them out to dinner during our stay. Any thoughts on how we can repay them for their hospitality? — Trina K., Sunset Park, Brooklyn

Start with a great hostess gift . . . ideally something for the house. (After many shared weekends together, you should know their taste by now.) Bring food and spirits, too — some to be consumed during your visit, some to be left for their enjoyment at a later date. When you get back home, send them an invite for a home-cooked meal at your place. And last but not least, don’t forget the thank-you note.

Next column: Newspaper nabbers and other neighbor nuisances. Got a question? E-mail me at
t
estingthemarketnyc@gmail.com or Tweet me @MisterManners.

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American, US Airways agree to join

After a nearly yearlong courtship, the union becomes official on Valentine’s Day: American Airlines and US Airways are expected to formally announce plans to merge Thursday morning.

The boards of both companies approved the merger late Wednesday, the Associated Press reported, citing four people close to the situation.

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.

If the deal is approved by American’s bankruptcy judge and antitrust regulators, it will create the world’s biggest airline, with close to 100,000 employees, 1,500 aircraft and $38.7 billion in combined revenue. American used to hold the top title but lost that position after United Airlines merged with Continental and Delta Air Lines merged with Northwest.

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.

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.

“You’ll see some additional service, I believe, from Miami to Europe because of the merger, and better connections to Asian markets,” he said. “It’ll be good for the Miami area.”

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Marco Rubio’s school voucher plan shows strong Jeb Bush ties

U.S. Sen. Marco Rubio immediately followed his rebuttal to the president’s State of the Union address Tuesday night by releasing a “school-choice” bill to allow taxpayers to subsidize private-school education for poor kids.

By putting legislation where his mouth is, Rubio wanted to reinforce the theme of his speech — that conservative policy is good for the poor and working class.

The legislation, which revolves around tax credits, also makes good on a 2010 Rubio campaign pledge, and reinforces his strong ties to former Republican Gov. Jeb Bush, his friend and mentor whose nonprofit education foundation helped shape the legislation.

Bush passed a similar school-choice voucher program in 2001, which Rubio voted for while he served in the Florida House.

If Florida’s experience is any measure, though, Democrats, teacher unions and some church-and-state separatists will oppose the scholarship-voucher program, saying it indirectly uses tax money to fund private, and often religious education.

“It’s not about unions. It’s not about school administrators,” Rubio said in an interview. “This is about parents. The only parents in America who don’t have a choice where their kids go to school are poor parents.”

Though Rubio’s rhetoric adopts longstanding Democratic talking points about the disadvantaged, the legislation will have a tough time in the Democratic-controlled U.S. Senate.

Across the nation, Democrats and teacher unions have faced off with Bush and his nonprofit foundation as it pushes for more school-choice legislation. Rubio’s legislation, in conjunction with Bush’s lobbying efforts, could bring the fight to Capitol Hill.

It can be a good wedge issue as well for Republicans; black lawmakers, who tend to be Democratic, often support school-choice laws aimed at poor children.

The legislation also highlights the closeness of Rubio and Bush amid Washington speculation that the two might have a rivalry as each eyes a White House bid. Associates of the two say it’s far more likely Rubio will run than Bush; and there’s no real rivalry between them as both take leadership roles in the national immigration debate.

Rubio’s involvement in rounding up conservative support for immigration reform was a key factor in his selection by GOP leaders to rebut President Barack Obama’s speech. Rubio, however, doesn’t want to be limited to immigration policy — a reason he announced his Educational Opportunities Act right after his speech. The legislation should be introduced Wednesday.

Before his Tuesday night national address, Democrats accused him of supporting “extreme” budget policies that would cut social-welfare programs.

Democrats are sure to zero in on a potential irony of his legislation: It could technically increase the debt at the same time Rubio is talking about debt reduction.

Rubio said he doesn’t know how much the legislation could cost the federal treasury. It has not been analyzed yet, or scored, by the Congressional Budget Office. About 11 states have similar tax-credit programs with about $405 million in tax credits for 148,300 students.

Under Rubio’s legislation, corporations or individuals could annually donate a maximum $100,000 or $4,500, respectively. The money, for which the donor receives a dollar-for-dollar tax credit, flows to a nonprofit “Scholarship Grant Organization,” which then distributes money to private schools on behalf of thousands of students.

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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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Who failed Chicago?

Michelle Malkin

As her husband delivered his annual State of the Union Address last night, First Lady Michelle Obama hosted the parents of an innocent teenage girl shot and killed by Chicago gang thug. On Friday, President Obama will travel to the Windy City to decry violence and crusade for more gun laws in the town with the strictest gun laws and bloodiest gun-related death tolls in America.

Does the White House really want to open up a national conversation about the state of Chicago? OK, let’s talk.

Obama, his wife, his campaign strategists, his closest cronies, and his biggest bundlers all hail from Chicago. Senior adviser and former Chicago real estate mogul/city planning commissioner Valerie Jarrett and her old boss, Richard Daley, presided over a massive “Plan for Transformation” in the mid-1990s to rescue taxpayer-subsidized public housing from its bloody hellhole. How’d that work out for you, Chicago?

Answer: This social-justice experiment failed miserably. A Chicago Tribune investigation found that after Daley/Jarrett dumped nearly $500 million of federal funding into crime-ridden housing projects, the housing complexes (including the infamous Altgeld-Murray homes) remained dangerous, drug-infested, racially segregated ghettos.

Altgeld is a long-troubled public housing complex on Chicago’s South Side where youth violence has proven immune to “community organizing” solutions and the grand redevelopment schemes championed by Obama and company.

In fact, as I’ve reported previously, it’s the same nightmarish ’hood where Obama cut his teeth as a community activist — and exaggerated his role in cleaning up asbestos in the neighborhood, according to fellow progressive foot soldiers. As always, Obama’s claims to success there were far more aspirational than concrete.

In the meantime, lucrative contracts went to politically-connected Daley pals in the developer world to “save” Chicago youth and families. Another ghetto housing project, the Grove Parc slum, was managed by Jarrett’s former real-estate empire, Habitat, Inc. Jarrett refused to answer questions about the dilapidated housing development after becoming the top consigliere in the Obama administration.

But as the Boston Globe’s Binyamin Appelbaum, who visited the slums several years ago, reported: “Federal inspectors graded the condition of the complex an 11 on a 100-point scale — a score so bad the buildings now face demolition. . . . [Jarrett] co-managed an even larger subsidized complex in Chicago that was seized by the federal government in 2006, after city inspectors found widespread problems.”

Grove Parc and several other monumental housing flops “were developed and managed by Obama’s close friends and political supporters. Those people profited from the [federal] subsidies even as many of Obama’s constituents suffered.”

Democrats poured another $30 million in public money into the city’s public schools to curb youth violence over the last three years. The New York Times hailed the big-government plan to fund more social workers, community organizers and mentors and create jobs for at-risk youth.

But watchdogs on the ground exposed it as a wasteful “makework scheme.” One local activist nicknamed it “Jobs for Jerks” because “it rewards some of the worst students in the school system with incredibly rare employment opportunities while leaving good students to fend for themselves.”

Obama and his ineffectual champions of Chicago’s youth will demand more taxpayer “investments” to throw at the problem. But money is no cure for the soaring fatherlessness, illegitimacy and family disintegration that have characterized Chicago inner-city life since Obama’s hero Saul Alinsky pounded the pavement.

As City Journal’s Heather MacDonald noted in a damning indictment of the do-gooders’ failures, “official silence about illegitimacy and its relation to youth violence remains as carefully preserved in today’s Chicago as it was during Obama’s organizing time there.”

Team Obama will find perverted ways to lay blame for Chicago’s youth violence crisis on the NRA, Fox News, George Bush and the Tea Party. But as the community organizer-in-chief prepares to evade responsibility again, he should remember: When you point one finger at everyone else, four other fingers point right back at you-know-who.

malkinblog@gmail.com

Have a comment on this PostOpinion column? Send it in to LETTERS@NYPOST.COM!

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South Florida group commits to investing in U.S. Century Bank

U.S. Century Bank has signed off on its deal to recapitalize with cash from a high-profile group of local investors, allowing the Doral bank to remain independent.

The investment team, led by brothers Jimmy and Kenny Tate of Tate Capital, Sergio Rok of Rok Enterprises and Jorge Perez of Related Group, has expertise in buying distressed assets and promises to fortify U.S. Century to give it a financial foundation for success.

“We believe that our group, coupled with the additional investors we’re bringing in, will prove to be the proper brain trust needed in order to clean up the past and build a beautiful bank in the future,” said Jimmy Tate, 49.

The “handpicked” group is composed of about 10 prominent South Florida business leaders with substantial experience, who will each be making a significant investment, said Tate, who did not yet have their approvals to name them all, but said he hopes to soon.

“They are the leading businessmen in South Florida, and they are philanthropic, and they have South Florida at heart,” he said. “And they are very excited about this endeavor because they believe, as I believe, that there is a strong demand for a well-capitalized community bank that serves the banking needs of the local community.”

As part of the deal, the group will pump $50 million in capital into U.S. Century, 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. The deal will also provide for a negotiated amount of more than $5 million to be paid to the federal government for U.S. Century’s $50.2 million in TARP funds, said U.S. Century President and Chief Executive Carlos J. Dávila.

“I certainly think this will be a very positive transaction for all the major stakeholders, meaning the community, the shareholders and our employees,” Dávila said.

U.S. Century’s 441 existing shareholders will remain as stockholders, though their percentage of ownership will shrink. Those shareholders will have the option to invest additional capital along with the new group, Dávila said.

The deal is the culmination of years of searching for capital for struggling U.S. Century, whose agreement to be bought by C1 Bank of St. Petersburg was called off by C1 in December.

U.S. Century, a Hispanic-oriented bank that opened in 2002, has been operating under a regulatory consent order since June 2011, which has mandated that it raise capital, among other issues.

The new deal, which is now under a signed letter of intent, should bring the bank “close” to regulators’ requirement of an 8 percent capital ratio, Dávila said.

“For a bank that is in distress or under a consent order where there is a requirement to raise capital, the terms and conditions of this deal are extremely reasonable and fair for the existing shareholders,” he said.

Furthermore, U.S. Century, with $1 billion in assets and 24 branches, now will get a new shot at life as one of the only remaining locally owned community banks of its size. Others, like City National Bank of Florida and BankAtlantic have been sold in recent years to foreign owners or larger U.S. banks.

Tate and his team have been working on the deal since January, after first making an unsolicited offer while the C1 deal was under way.

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Related could give jolt to long overdue Watson Island development plans

The long overdue development of Watson Island, stalled for a dozen years by the Sept. 11 terrorist attacks and a collapsed economy, may have received a huge jolt when New York’s Related Companies agreed to study the plan and possibly join forces in its development.

Developer Mehmet Bayraktar, who won the right to develop on the waterfront crown jewel back in 2001, said Monday that the company run by Miami Dolphins owner Stephen Ross has signed a Letter of Intent to “co-develop” the entire project.

“They will come in and we will work together jointly on the whole project. We’re co-developers or co-investors,” Bayraktar said Monday.

He described a Letter of Intent as a non-binding agreement in which both sides agree to do due diligence and spend time and money studying the plans. “It’s like an engagement, or a promissory note,” he said.

Ross was out of town Monday and couldn’t be reached for comment. Ric Katz, a public relations hand hired to help the Dolphins with the push to get public money for Sun Life Stadium renovations, couldn’t confirm the agreement late Monday.

According to Bayraktar, Related would be involved in three main components of the proposal: a hotel and residential complex, retail and a giant mega-yacht facility meant to lure some of the wealthiest people in the world. He estimated the project he won with a $281 million bid in 2001would likely balloon to a cost of about $800 million today. If Related absorbs 50 percent of the deal, it could put Ross’ investment close to $400 million.

“We’re planning to start building this fall,” said Bayraktar, who said he’s known Ross for many years.

The news was all good to Miami leaders who have struggled in dealing with Bayraktar, especially the past three years, when he fell behind in rent by as much as $500,000.

Several times they’ve threatened to kill the plan and reopen the bid to prospective developers. Each time, however, Bayraktar has been able to make required payments before the city rebid the project. Other times lobbyist Brian May was persuasive enough in pleading Bayraktar’s case that commissioners stalled killing the deal. “It’s fantastic news,” said Miami Commissioner Marc Sarnoff, who represents the district that encompasses Watson Island, a large circular spit of land that links Miami Beach to the mainland. “It shows we have someone who has the ability to get the ball across the goal. This type of project is right up his [Ross’] alley.”

Related, which specializes in high-end residential properties, also built New York’s Time Warner Center and CityPlace in West Palm Beach; it is currently working on the high-profile 26-acre Hudson Yards project on Manhattan’s West Side.

Bayraktar has been beset by problems since he won the right through a public vote to develop on Watson Island in November 2001.

The original $281 million plan would have yielded Miami a pair of ritzy hotels, one 18 floors and the other 28 floors. Shops, gardens, and restaurants were planned for more than 221,000 square feet of retail space, and a 54-slip mega-yacht complex called for matching 470-foot platforms.

Bayraktar’s company, the Flagstone Property Group, was to pay Miami $1 million a year in rent during the two years it would take to build, then $2 million a year and a percentage of retail and hotel room sales. Miami leaders drooled at the thought of $250 million into its coffers over the project’s 45-year lease.

But construction stalled as banks backed away after 9/11 and Bayraktar fought lawsuits and money issues. When the economy began to tank again in 2007 and banks again wouldn’t commit to the plan, the city granted him extensions.

Bayraktar and May have been a constant presence at City Hall since early 2010, soon after Tomás Regalado was elected mayor and made saving the Flagstone plan one of his top priorities.

“We expect to be open by 2016,” said Bayraktar.

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