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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86 degrees: Last time it was this hot in Fort Lauderdale, FDR was president

Did it feel hot Wednesday for a February in Fort Lauderdale?

The thermostat hit 86 degrees, breaking the city’s previous record of 85 degrees set in 1935 for a February 13.

“There’s only a handful of those old records left on the books,” said National Weather Service meteorologist Stephen Konarik, of the 78-year-old record that fell to our current unseasonably hot weather.

One still standing was also set this week in 1913 — 89 degrees for a February 12.

But the record breaking heat for South Florida is coming to an end.

Cooler temperatures are in store for Friday and Saturday, when a cold front moves in and temperatures will dip into the 70s.

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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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Intrepid cleared the decks for higher rent: suit

The Intrepid Museum Foundation has left its gift shop high and dry in the wake of Superstorm Sandy, according to a new lawsuit.

Owners of the shuttered souvenir shop, which is located at the entrance to the museum, accuse the foundation of trying to “clear the decks” of its current tenants, citing bogus storm damages. The real intention is to evict the long-term leaseholders and replace them with higher paying clients, the Manhattan Supreme Court suit alleges.

“The foundation’s actions reflect an opportunistic money grab,” the Walsky family, which operates the store, charges in court papers. The family only pays 12 percent of net sales in rent while national competitors “regularly pay in excess of 25 percent,” the documents state.

The foundation’s president allegedly told the Walskys their space was “wholly unusable” and stuck them with notice for a Feb. 15 eviction, even though the museum reopened in December after repairing flood damage.

The Intrepid, an sea, air and space museum that recently acquired the space shuttle Enterprise, is one of the city’s most popular tourist destinations.

The Walskys argue that the storm only caused “cosmetic” damages.

They want the court to stop the eviction and $100,000 in damages.

A spokesman for the Intrepid said the lease allows for termination in the event of a disaster like Sandy.

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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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‘Tony Montana’ pleads guilty to millions in jewel thefts

Eight months after his arrest in a South Beach hotel, the jeweler who called himself “Tony Montana” pleaded guilty Tuesday to organizing the thefts of and later reselling millions of dollars worth of diamonds and other jewels.

Juan Guardarrama, 49, received a reduced prison sentence of 10 years in exchange for cooperating with authorities on other cases related to the criminal enterprise of stealing and fencing diamonds.

In the agreement, Guardarrama acknowledges his “willingness to cooperate in bringing to justice” others who have been involved in crimes including theft, racketeering, money-laundering and fencing of stolen properties.

The night of his arrest, Guardarrama thought he was buying more than a half-million dollars worth of stolen jewelry when he asked undercover cops whether they would “take out” a partner from his side business of growing medical marijuana in Colorado. He had earlier asked the cops if they would be interested in selling some of that marijuana in Miami.

The Miami-Dade State Attorney’s Office charged Guardarrama with more than a dozen felony counts, from racketeering and money-laundering to dealing in stolen property and soliciting first-degree murder. The jeweler, whose nickname comes from a character in the 1983 Miami crime noir film Scarface, starring Al Pacino, faced more than 30 years in prison.

On Tuesday, Guardarrama pleaded guilty to the majority of the counts related to the jewelry operation, and authorities agreed to dismiss charges related to the marijuana and soliciting murder. As part of the deal, Guardarrama will surrender about $2 million in jewelry and money that was confiscated from his apartment in Denver.

His attorney, David Raben, declined to comment after Tuesday’s hearing before Miami-Dade Circuit Judge Thomas Rebull.

Detectives from a multiagency task force had been investigating Guardarrama for more than four years when the arrest took place last June at Loews Miami Beach Hotel. Guardarrama had worked as a wholesale jeweler for close to two decades, and was a familiar face in the Seybold building in downtown Miami, a hub of diamond and jewelry commerce.

But much of what Guardarrama sold was stolen. Authorities say he was a key player in orchestrating heists and robberies for international jewelry thieves who have operated in South Florida and across the country since at least 2005. He worked with a group of mostly Colombians who targeted traveling jewelry dealers for assaults, and a separate group of Cuban-born welders who blowtorched their way into jewelry store safes.

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Jillian Michaels Defends Melissa McCarthy From Critic Who Called Her a Hippo

America's toughest trainer is taking a stand against a film critic who called actress Melissa McCarthy a "hippo."

"It's evil," says Jillian Michaels of comments pointed towards McCarthy's weight in Rex Reed's scathing review of Identity Thief. "It's just plain cruelty and it's unnecessary."

Pics: Star Sightings

While promoting her book Slim For Life (out today), Michaels, who struggled with body issues as an adolescent, tells ET that Reed's words could hurt other women who are also plus-sized.

"That kind of prejudice is wrong in every possible way," she argues. "I'm here to say when you do things like that, it's spreading harm and it's hurtful and it's prejudice."

Related: 'Identity Thief' Cast Extols Melissa McCarthy

Today Reed finally spoke out about the controversy, telling WOR Radio in New York that his piece was in no way a personal attack against the actress.

"My review was really more about the movie and about the character [McCarthy] plays than it is about her," he said. "I don't care how much she weighs."

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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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Is 'Beautiful Creatures' the Next 'Twilight'?

Is it fair -- or accurate -- to call Beautiful Creatures the next Twilight? Sure, both tales feature sparring supernatural beings and forbidden love between a mysterious individual and a young mortal, but that's where the comparisons seem to end. Now, the stars of the film – including Emmy Rossum, Alice Englert, Alden Ehrenreich, Thomas Mann and Zoey Deutch – weigh in on the comparison.

Pics: Role Call -- The Latest Casting in Hollywood

In theaters Valentine's Day, Beautiful Creatures follows the story of Ethan (played by Alden), a young man longing to escape his small town, and Lena (played by Alice), the new girl with a dark secret – she comes from a family of witches (they prefer the term "casters"). When she turns 16 her powers will be claimed by either the forces of light or darkness, and with only weeks before her birthday, the two lovers are caught in a tug-of-war between good and evil. Set in the spooky south, the film is based on the first novel in the best-selling series by Kami Garcia and Margaret Stohl.

Video: 'Beautiful Creatures' Walk the Red Carpet

Watch the video to see how Jeremy Irons and Viola Davis and other stars of the film felt about working in the atmospheric New Orleans locations…

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