NY Times article questions what CEO knew of BBC sex scandal: can Mark Thompson survive?

LOS ANGELES (TheWrap.com) – The New York Times has turned its guns on one of its own, and right about now Mark Thompson must be looking for somewhere in the corporate suite to hide.

In a devastating article, the paper of record raises questions about what its newly minted chief executive officer knew about a pedophilia scandal at the BBC and when he knew it. Thompson stepped down as BBC director-general in September and assumed his new perch at The Times on Monday.

Yet his cross-Atlantic transition has been turbulent. He has found himself dogged by the scandal engulfing the BBC after allegations emerged that he tried to prevent an exposé by one of the network’s investigative programs into claims that children’s TV host Jimmy Savile routinely coerced teenage girls into having sex. Savile, who died in 2011, was one of the BBC’s biggest stars.

Thompson has maintained that he learned of the claims against Savile after leaving the BBC, but a legal letter indicates that he was aware of the accusations before he stepped down from his post, according to the article in The Times. In the piece, reporter Matthew Purdy writes that lawyers representing Thompson threatened to sue The Sunday Times over an article it was writing that claimed he had squelched his network’s investigative report on Savile’s sexual behavior. The letter was sent 10 days before Thompson resigned from the BBC.

The Sunday Times is owned by Rupert Murdoch’s News Corp. and is based in the United Kingdom.

“There were other moments during Mr. Thompson’s final months at the BBC – involving brief conversations and articles appearing in London news media – when he might have picked up on the gravity of the Savile case,” Purdy writes. “But the letter is different because it shows Mr. Thompson was involved in an aggressive action to challenge an article about the case that was likely to reflect poorly on the BBC and on him.”

The letter purportedly included a summary of Savile’s alleged abuses. The Times reports that an aide to Thompson said he authorized the letter orally, but was not fully informed about its contents.

After the story broke, speculation mounted on Twitter among media watchers that Thompson’s position at The Times might be in jeopardy.

“The odds on Mark Thompson staying as CEO of the New York Times just changed,” Jay Rosen, a journalism professor at New York University, tweeted.

At the very least, it appears that reporters at the paper have taken to heart Public Editor Margaret Sullivan’s charge to cover the BBC scandal aggressively.

“As the BBC has found out in the most painful way, for The Times to pull its punches will not be a wise way to go,” Sullivan wrote.

As Thompson, still nursing Purdy’s uppercut, just found out, The Times looks ready to put some muscle into it.

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The Neediest Cases: Emerging From a Bleak Life to Become Fabulous Phil

For years, Phillip Johnson was caught in what seemed like an endless trench of bad luck. He was fired from a job, experienced intensifying psychological problems, lost his apartment and spent time in homeless shelters. At one point, he was hospitalized after overdosing on an antipsychotic drug.

“I had a rough road,” he said.

Since his hospital stay two years ago, and despite setbacks, Mr. Johnson, 27, has been getting his life on track. At Brooklyn Community Services, where he goes for daily counseling and therapy, everybody knows him as Fabulous Phil.

“Phillip is a light, the way he evokes happiness in other people,” his former caseworker, Teresa O’Brien, said. “Phillip’s character led directly to his nickname.”

About six months ago, with Ms. O’Brien’s help, Mr. Johnson started an event: Fabulous Phil Friday Dance Party Fridays.

One recent afternoon at the agency, 30 clients and a few counselors were eating cake, drinking soft drinks and juice, and grooving for 45 minutes to Jay-Z and Drake pulsating from a boom box.

Mr. Johnson’s voice rose with excitement when he talked about the party. Clients and counselors, he said, “enjoy themselves.”

“They connect more; they communicate more,” he continued. “Everybody is celebrating and laughing.”

The leadership Mr. Johnson now displays seems to be a far cry from the excruciatingly introverted person he was.

As an only child living with his single mother in public housing in Bedford-Stuyvesant, Brooklyn, he said, he tended to isolate himself. “A lot of kids my age would say, ‘Come outside,’ but I would always stay in my room,” he said. He occupied himself by writing comic books or reading them, his favorites being Batman and Spiderman because, he said, “they were heroes who saved the day.”

After graduating from high school in 2003, he worked odd jobs until 2006, when he took a full-time position at a food court at La Guardia Airport, where he helped to clean up. The steady paycheck allowed him to leave his mother’s apartment and rent a room in Queens.

But the depression and bleak moods that had shadowed him throughout middle and high school asserted themselves.

“My thinking got confused,” he said. “Racing thoughts through my mind. Disorganized thoughts. I had a hard time focusing on one thing.”

In 2008, after two years on the job, Mr. Johnson was fired for loud and inappropriate behavior, and for being “unpredictable,” he said. The boss said he needed counseling. He moved back in with his mother, and in 2009 entered a program at an outpatient addiction treatment service, Bridge Back to Life. It was there, he said, that he received a diagnosis of schizophrenia and help with his depression and marijuana use.

But one evening in May 2010, he had a bout with insomnia.

He realized the antipsychotic medication he had been prescribed, Risperdal, made him feel tired, he said, so he took 12 of the pills, rather than his usual dosage of two pills twice a day. When 12 did not work, he took 6 more.

“The next morning when I woke up, it was hard for me to breathe,” he said.

He called an ambulance, which took to Woodhull Hospital. He was released after about a month.

Not long after, he returned to his mother’s apartment, but by February 2011, they both decided he should leave, and he relocated to a homeless shelter in East New York, where, he said, eight other people were crammed into his cubicle and there were “bedbugs, people lying in your bed, breaking into your locker to steal your stuff.”

In late spring 2011, he found a room for rent in Manhattan, but by Thanksgiving he was hospitalized again. Another stint in a shelter followed in April, when his building was sold.

Finally, in July, Mr. Johnson moved to supported housing on Staten Island, where he lives with a roommate. His monthly $900 Social Security disability check is sent to the residence, which deducts $600 for rent and gives him $175 in spending money; he has breakfast and lunch at the Brooklyn agency. To assist Mr. Johnson with unexpected expenses, a grant of $550 through The New York Times Neediest Cases Fund went to buy him a bed and pay a Medicare prescription plan fee for three months.

“I was so happy I have a bed to sleep on,” he said about the replacement for an air mattress. “When I have a long day, I have a bed to lay in, and I feel good about that.”

Mr. Johnson’s goals include getting his driver’s license — “I already have a learner’s permit,” he said, proudly — finishing his program at the agency, and then entering an apprenticeship program to become a plumber, carpenter or mechanic.

But seeing how his peers have benefited from Fabulous Phil Fridays has made him vow to remain involved with people dealing with mental illnesses or substance abuse.

He was asked at the party: Might he be like the comic-book heroes he loves? A smile spread across his face. He seemed to think so.

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Chocolatier finds sweet spot in Belize

Katrina Markoff, the founder of high-end Chicago chocolatier Vosges Haut-Chocolat, is nearing completion on two high-profile projects: a winery-style chocolate facility in Logan Square and an education center at a cacao plantation and eco-lodge in Belize.

Markoff isn't ready to talk about the Logan Square project, her spokeswoman said. But in an interview last week, she said she hopes the Belcampo farm in Belize will become the source of a majority of Vosges' cacao once its plants mature.

The project means Markoff will soon play a role in every aspect of production from seed selection through packaging without having to assume the financial risk of owning a tropical plantation.

Belcampo Group CEO Anya Fernald said the education center that Markoff helped design will open in mid-December, and Markoff will teach her first "master class" on cacao to guests at the 12-room lodge April 23-27. In exchange for her time and expertise, Markoff will receive a better price on the beans.

"I've always wanted to be involved through the full vertical, from actually growing the varietals of cacao I want, and being particular about how they're grown and harvested and fermented and dried," she said.

Once the farm reaches full yield in about five years, Fernald estimated it will produce 250,000 pounds of cacao annually. Already, with only 60 acres planted so far — all under a rain forest canopy — Fernald said Belcampo is already Belize's largest cacao plantation.

"The integrity of that project is really, really unique and special," Markoff said. "Typically when people buy beans to make chocolate, they just buy whatever is available in the commodity market. There's not a lot of control over how it's grafted, where it's planted, how it's nurtured, who's taking care of it. You just don't get that kind of control."

Bluhm continues gambling push

Chicago real estate and gambling executive Neil Bluhm is entering the race to build one of four planned casinos in Massachusetts and has launched an online gaming division in Chicago, said Greg Carlin, chief executive of Bluhm's Rush Street Gaming.

Earlier this year Rush Street hired Richard Schwartz from Waukegan-based WMS Industries and appointed him president of Rush Street Interactive, its new online gaming division.

"We think (Internet gaming) is going to be eventually legalized throughout the country, or in jurisdictions that have bricks-and-mortar casinos," Carlin said. "Illinois is actually a leader in selling lottery tickets online and could be a leader in Internet gaming as well if they get ahead of the curve and pass legislation before some of the other states."

Nevada and Delaware have legalized some forms of Internet gambling.

In recent years, Bluhm has built three casinos: Rivers Casino in Des Plaines, one in Pittsburgh and another in Philadelphia. In October, Bluhm sold his first U.S. casino, Riverwalk Casino and Hotel, in Vicksburg, Miss., for $141 million in cash to Churchill Downs Inc. (Bluhm held a 70 percent stake in Riverwalk.)

Churchill Downs, a horse racing and wagering company, also owns Arlington Park in Arlington Heights. Its largest shareholder is Duchossois Group, founded by Arlington Park Chairman Richard "Dick" Duchossois.

Duchossois has been trying to persuade the Illinois Legislature to approve slots at racetracks, which, if successful, would make Arlington Park a competitor of Bluhm's Des Plaines casino.

As for the Massachusetts casino, the gambling commission there will weigh applications for casino licenses well into 2013.

Alvarez joins Culloton

Public relations firm Culloton Strategies has hired Michael Alvarez, a commissioner of the Metropolitan Water Reclamation District of Greater Chicago, as senior vice president for public affairs.

As the Sun-Times reported in January, Alvarez, 32, has worked for Barack Obama, Rod Blagojevich and Richard M. Daley — while he has close ties to Ald. Richard Mell, Blagojevich's father-in-law.

In addition to his $70,000 annual salary at the water district, Alvarez has a $60,000-a-year public relations contract with the Illinois Sports Facilities Authority and a "fast-growing" lobbying practice, the Sun-Times reported.

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Metra riders could face fare hike

Many Metra riders could be facing another fare increase this February, just one year after digging deep for the biggest fare hike in the commuter rail line's history.

Metra's board is expected to vote Friday on a recommendation to raise the price of the popular 10-ride tickets about 11 percent, the Tribune has learned.

That would mean an increase ranging from $2.75 to $9.25 per 10-ride ticket, depending on the distance.

If approved, the increase would deprive 10-ride ticket buyers of the discount traditionally associated with the ticket. Currently, 10-ride tickets cost the equivalent of nine rides.

Word of the possible increase did not set well with riders Thursday evening.

Student Satya Shah, 24, of Rogers Park, said that if the price goes up, he'll have to consider taking the CTA from Rogers Park to downtown, even though Metra is closer to his home.

"It's going to hurt the wallet," he said of an increase. "If it works out to be cheaper, I'll take the CTA."

Customers now pay anywhere from $24.75 per 10-ride ticket for close-in Metra zones to $83.25 for the farthest communities.

Ten-ride ticket users account for about 22 percent of Metra's ridership. Customers who use monthly passes — about 57 percent of Metra's riders — and those who buy single tickets would not see their fares increase.

Metra's staff estimates the fare increase would produce $8.3 million in 2013 to help meet the agency's capital needs. Those include system improvements, maintenance and equipment.

Unveiling a proposed 2013 budget totaling $713.5 million last month, Metra officials warned that they would consider "scenarios" for raising fares up to 10 percent but did not specify any options.

Friday's recommendation comes as a result of discussions among board members and Metra staff, officials said.

Spokesman Michael Gillis said Thursday that the agency wants to use the $8.3 million in additional revenue as a match to obtain federal dollars for capital needs.

Metra needs about $7.4 billion over the next 10 years to keep the commuter rail line in what officials call a "state of good repair."

Board members contacted Thursday said they expected to have a thorough discussion of the fare increase Friday before taking action.

If the board approves the increase Friday, Metra still would need to hold a series of hearings to get public comment before the increase would get final adoption. That could come as early as Metra's Dec. 14 meeting.

Arlene Mulder, who represents suburban Cook County on the board, said she had not decided whether she would support the increase.

"I feel we need to cover our costs, but I know a lot of people who are on extraordinarily tight budgets now," said Mulder, who also is the mayor of Arlington Heights. "We can't lose sight of that."

James LaBelle, who represents Lake County, said he supported increasing the price of a 10-ride ticket to cover the cost of 91/2 rides.

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In Gaza, new arsenals include “weaponized” social media

SAN FRANCISCO (Reuters) – There have long been the tools of warfare associated with the Israeli-Palestinian conflict: warplanes, mortars, Qassam rockets. Now that list includes Twitter, Facebook, YouTube.

This week the worldwide audience got a vivid look at conflict in the social media era as the Israeli military unfurled an extensive campaign across several Internet channels after conducting an air strike that killed a top Hamas military commander in the Gaza Strip on Wednesday.

The air strike, which came after several days of rocket attacks launched from Gaza toward targets in Israel, was confirmed by the Israel Defense Force’s Twitter account before the military held a press conference.

The public relations tug-of-war has long been understood as a central element of the Israeli-Palestinian conflict. Palestinian leaders like Yasser Arafat were credited with skillfully courting international media during the first Intifada to highlight the Palestinian struggle and help sway public opinion.

But the newest technologies, including Twitter and YouTube, have been embraced particularly by the Israeli government, which has perhaps waged an unprecedented social media PR campaign as the conflict escalated this week.

The Israel Defense Force (IDF) has established a presence on nearly every platform available. It launched a Tumblr account Wednesday, posting infographics touting how Israeli forces minimize collateral damage to Palestinian civilians. It prepared Facebook pages in several languages, and even has a bare-bones Pinterest page with photos of troops deployed in humanitarian missions.

On Twitter, the @IDFspokesperson account issued a torrent of tweets that carried hashtags like #IsraelUnderFire and what it said were videos of rockets fired at Israel from Gaza, as well as pictures of wounded Israeli children.

“They are very conscious how things are going to be viewed, perhaps more so because they sense that they are more and more isolated in world opinion, and they are less shouldered by U.S. public opinion,” said James Noyes, a research fellow at the Hoover Institution.

The IDF also posted on Twitter a picture of Ahmed Al-Jaabari, the Hamas commander who was killed, with the word “eliminated” stamped over his face.

Meanwhile, the Al-Qassam Brigades, the military group formerly led by Al-Jaabari, also took to Twitter to offer blow-by-blow updates of its fighters shelling Israeli military targets. It publicized deaths of Palestinian children due to Israeli attacks, and used hashtags like “#terrorism.”

HIGH STAKES

At certain points, the two sides clashed head-on.

“We recommend that no Hamas operatives, whether low level or senior leaders, show their faces above ground in the days ahead,” tweeted @IDFspokesperson after Al-Jaabari was killed.

Al-Qassam (@AlqassamBrigade) shot back at @IDFSpokesperson, warning in a public tweet that the group’s “blessed hands will reach your leaders and soldiers wherever they are,” and that “You Opened Hell Gates on Yourselves” as a result of the air strike.

The exchange raised questions for the new media companies that have vowed to stand behind free speech but perhaps have never before played host to such high-stakes discourse.

Although Twitter regulates against “direct, specific threats of violence,” the two sides tweeted unchecked. The company did not respond to requests for comment.

But on Wednesday, YouTube briefly blocked a grainy IDF video that showed a missile striking Al-Jaabari’s car. The footage, uploaded shortly after the air strike, had drawn hundreds of thousands of views and was flagged by some users as objectionable.

YouTube’s parent Google Inc later reinstated the video and Google Chairman Eric Schmidt said there was a lot of “back and forth” among senior executives at Google, including himself and Google Chief Executive Larry Page, over whether to block the footage.

In YouTube’s case, the general rule is that films that “encourage violence and depict violence are not allowed,” said Schmidt, speaking at a conference sponsored by the RAND corporation and Thomson Reuters entitled “Politics Aside,” in Los Angeles.

“The problem is, if we don’t host it, somebody else will. How do we get all of it down?” he added.

‘WEAPONIZED’ SOCIAL MEDIA

Observers say the Israeli military’s social media efforts are a far cry from the 2008 Gaza War, when the IDF launched a YouTube channel for the first time with videos that sought to justify sending troops into Palestinian territory.

“Operation Cast Lead marked the first time they weaponized social media,” said Rebecca Stein, a professor of anthropology at Duke University who has researched how Israeli military officials use social media. “But back then it was very improvisational,” she said.

In 2010, the government seemed to be caught off guard when activists on a humanitarian convoy bound for the Gaza Strip stirred up sympathy by tweeting and webcasting from their boats after they were boarded by Israeli troops.

That year, the Israeli foreign ministry invested more than $ 15 million to better grasp how the government could use social media in a broader campaign to burnish the nation’s image.

Last year, Israeli officials sent a letter to Facebook Inc asking the social network to remove a page calling for a third Palestinian uprising.

On Thursday, as Israel mobilized troops for a potential ground assault reminiscent of 2008, the PR machine that rolled out seemed nothing like the halting efforts of four years prior, Stein said.

“They’ve had to do a lot of learning between then and now and have invested a lot of resources and exponential manpower specifically for an event like this,” Stein said. “In some sense, they’ve been pioneers of social media statecraft.”

(Additional reporting by Tim Reid in Los Angeles; Editing by Lisa Shumaker)

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NBC to replace “Today Show” producer, source says

(Reuters) – NBC is expected to name Alexandra Wallace, a senior vice president of the network’s news division, as the executive in charge of “The Today Show,” the latest reshuffling of the show’s personnel after it slipped to second in ratings this year behind “Good Morning America.”

Wallace, who would be the first woman in charge of the long-running NBC show that pioneered early morning TV in the United States, will be named along with a producer to replace Jim Bell, according to a person familiar with the decision.

Bell, who has headed the show since 2005, was blamed this year for the controversial firing of Ann Curry as anchor alongside Matt Lauer.

Curry was replaced by Savannah Guthrie in June.

“Good Morning America” or GMA, produced by Walt Disney‘s ABC unit, closed the gap with “Today.”

“Today,” the top-rated morning show for 16 consecutive years, started the current TV season number two. In late October, NBC drew 7,000 more viewers than GMA among 25 to 54 year-old viewers, the age group advertisers most want to reach, its first lead since September 10. GMA still led among overall viewers.

The first two hours of “The Today Show,” from 7 a.m. to 9 a.m., collected $ 485 million in ad revenues in 2011, up 6.6 percent from 2010, according to Kantar Media, which provides data to advertisers. GMA took in $ 299 million last year.

It is unclear when the changes at “The Today Show” will take effect, according to The New York Times, which first reported the shakeup.

Bell this summer produced NBC’s Summer Olympics coverage and is expected to become the full-time executive producer of the network’s ongoing Olympic coverage.

NBC, a unit of Comcast Corp., is also in the midst of layoffs at its entertainment unit, shedding 500 positions primarily at its cable channels. Jay Leno’s late night TV show cut about two dozen of its crew members about two months ago.

(Reporting By Ronald Grover)

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For Alzheimer’s, Detection Advances Outpace Treatment Options

Joshua Lott for The New York Times

Awilda Jimenez got a scan for Alzheimer’s after she started forgetting things. It was positive.

When Awilda Jimenez started forgetting things last year, her husband, Edwin, felt a shiver of dread. Her mother had developed Alzheimer’s in her 50s. Could his wife, 61, have it, too?

He learned there was a new brain scan to diagnose the disease and nervously agreed to get her one, secretly hoping it would lay his fears to rest. In June, his wife became what her doctor says is the first private patient in Arizona to have the test.

“The scan was floridly positive,” said her doctor, Adam S. Fleisher, director of brain imaging at the Banner Alzheimer’s Institute in Phoenix.

The Jimenezes have struggled ever since to deal with this devastating news. They are confronting a problem of the new era of Alzheimer’s research: The ability to detect the disease has leapt far ahead of treatments. There are none that can stop or even significantly slow the inexorable progression to dementia and death.

Families like the Jimenezes, with no good options, can only ask: Should they live their lives differently, get their affairs in order, join a clinical trial of an experimental drug?

“I was hoping the scan would be negative,” Mr. Jimenez said. “When I found out it was positive, my heart sank.”

The new brain scan technology, which went on the market in June, is spreading fast. There are already more than 300 hospitals and imaging centers, located in most major metropolitan areas, that are ready to perform the scans, according to Eli Lilly, which sells the tracer used to mark plaque for the scan.

The scans show plaques in the brain — barnaclelike clumps of protein, beta amyloid — that, together with dementia, are the defining feature of Alzheimer’s disease. Those who have dementia but do not have excessive plaques do not have Alzheimer’s. It is no longer necessary to wait until the person dies and has an autopsy to learn if the brain was studded with plaques.

Many insurers, including Medicare, will not yet pay for the new scans, which cost several thousand dollars. And getting one comes with serious risks. While federal law prevents insurers and employers from discriminating based on genetic tests, it does not apply to scans. People with brain plaques can be denied long-term care insurance.

The Food and Drug Administration, worried about interpretations of the scans, has required something new: Doctors must take a test showing they can read them accurately before they begin doing them. So far, 700 doctors have qualified, according to Eli Lilly. Other kinds of diagnostic scans have no such requirement.

In another unusual feature, the F.D.A. requires that radiologists not be told anything about the patient. They are generally trained to incorporate clinical information into their interpretation of other types of scans, said Dr. R. Dwaine Rieves, director of the drug agency’s Division of Medical Imaging Products.

But in this case, clinical information may lead radiologists to inadvertently shade their reports to coincide with what doctors suspect is the underlying disease. With Alzheimer’s, Dr. Rieves said, “clinical impressions have been misleading.”

“This is a big change in the world of image interpretation,” he said.

Like some other Alzheimer’s experts, Dr. Fleisher used the amyloid scan for several years as part of a research study that led to its F.D.A. approval. Subjects were not told what the scans showed. Now, with the scan on the market, the rules have changed.

Dr. Fleisher’s first patient was Mrs. Jimenez. Her husband, the family breadwinner, had lost his job as a computer consultant when the couple moved from New York to Arizona to take care of Mrs. Jimenez’s mother. Paying several thousand dollars for a scan was out of the question. But Dr. Fleisher found a radiologist, Dr. Mantej Singh Sra of Sun Radiology, who was so eager to get into the business that he agreed to do Mrs. Jimenez’s scan free. His plan was to be the first in Arizona to do a scan, and advertise it.

After Dr. Sra did the scan, the Jimenezes returned to Dr. Fleisher to learn the result.

Dr. Fleisher, sad to see so much plaque in Mrs. Jimenez’s brain, referred her to a psychiatrist to help with anxiety and suggested she enter clinical trials of experimental drugs.

But Mr. Jimenez did not like that idea. He worried about unexpected side effects.

“Tempting as it is, where do you draw the line?” he asks. “At what point do you take a risk with a loved one?”

At Mount Sinai Medical Center in New York, Dr. Samuel E. Gandy found that his patients — mostly affluent — were unfazed by the medical center’s $3,750 price for the scan. He has been ordering at least one a week for people with symptoms ambiguous enough to suggest the possibility of brain plaques.

Most of his patients want their names kept confidential, fearing an inability to get long-term care insurance, or just wanting privacy.

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United glitch hits ahead of holidays

A massive computer outage at United Airlines early Thursday stranded passengers across the country.A spokesperson for United tells WGN-TV that the airline is up and running again.

United Airlines, just a week before the year's busiest travel period, experienced yet another major computer problem Thursday morning that delayed hundreds of flights across the country, mostly on the East Coast. Some airline industry observers called for "heads to roll" at the world's largest airline.

The latest glitch involved the dispatch system software that enables Chicago-based United to communicate with airplanes before departure, delivering information on the plane's weight and balance, number of passengers and baggage, said United spokesman Charlie Hobart.

Flights of United's regional jet service, United Express, were not affected.

The outage occurred from about 7:30 to 9:30 a.m. Thursday and resulted in 257 delays directly attributable to the outage and more through the day, along with about 10 cancellations. The airline said it had 636 delays Thursday, far more than its typical number of about 300. The delays affected a relatively small number of the airline's 5,500 daily flights — fewer than 5 percent, Hobart said.

The impact at O'Hare International Airport seemed to be minimal, United and airport officials said.

United has had rampant problems with an unrelated system, its passenger reservation system it switched to in March. In August, the airline had another unrelated network outage that occurred when a piece of communication equipment in a United data center failed and disabled communications with airports and the United website, United.com. That was due to a failure at a United vendor.

The computer problems, especially the reservation system problem that affected flights in midsummer, have had Jeff Smisek, CEO of United's parent company, United Continental Holdings, making public apologies since March. He conceded to Wall Street analysts that operational problems hurt the airline's third-quarter profits as many customers fled to competitors. But he said during an earnings call with analysts in late October that those problems were behind the airline and that he was confident United would perform well during the busy holiday travel season.

Aside from weather-related delays, such as superstorm Sandy and a snowstorm on the East Coast, that seemed true until Thursday's outage. Even on Thursday, United's on-time performance was about 80 percent, meeting its target, a spokesman said.

"It was a software issue that we found and fixed in that two-hour period," United spokesman Rahsaan Johnson said. "It will not happen again."

Hobart said he did not have details about what went wrong.

Joe Brancatelli, a business travel writer at JoeSentMe.com, said the failures point to a larger problem.

Some industry observers said United is out of excuses.

"It is flat-out unacceptable," said Henry Harteveldt, co-founder of Atmosphere Research Group. "This makes United a laughingstock among airlines."

He said airline computer systems are complex and Thursday's problem might be a one-time issue, but the repeated failures are not only embarrassing for United, they "undermine trust in the airline" and "demoralize employees."

"There are clearly failures in the airline's strategy and the airline's execution, and heads need to roll," he said. "United's (chief information officer) should resign or be dismissed."

Hobart said the airline has improved recently.

"Since this summer, we've significantly improved our operational performance, with nearly 85 percent of our flights on time so far this month and nearly 80 percent of flights arriving on time in October, despite operational challenges like Hurricane Sandy," he said. "We understand this outage was frustrating for our customers, and we are enabling them to rebook without penalty and receive a full refund if their flights were delayed by at least two hours."

"Mostly what it says is that (airlines) have got to stop looking at mergers as two route maps you can smash together," Brancatelli said. He contends that the United-Continental merger was not planned properly.

"There are too many things going wrong," he said. Blame rests with "the guys running the show," he said of United's top executives. "The fish stinks from the head."

gkarp@tribune.com

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Union: Police shoot, kill man who stabbed man on South Side

Police shot and killed a man who was stabbing another man and came at officers with a hammer in the South Chicago neighborhood late Wednesday, with another officer suffering a graze wound from the gunfire, a police union spokesman said.

There was no exchange of gunfire as initially reported, but police were defending themselves against a man who police saw stabbing another man and who then came after officers with a hammer, authorities said.

Police responded to a call of a disturbance at South Shore Food & Liquors, 7900 S. South Shore Dr., about 11:45 p.m. and saw one man stabbing another on the street, said Patrick Camden, a spokesman for Fraternal Order of Police Lodge 7.

Police approached and told the man to drop the knife, but he did not and at some point pulled a hammer out of a pocket and went at the officers, Camden said.

Officers hit the man with a Taser, but he continued to be combative. At least one officer began shooting, striking the man several times, and grazing the officer once, Camden said.

The man with the hammer died on the scene, and his body remained in the middle of 79th Street, surrounded by numerous shell casings and red police tape street as officers investigated about 2 a.m.

The officer was driven to Advocate Trinity Hospital by another police officer, according to police, and the weapons used in the attack were located at the scene.

The man who was stabbed was taken to Northwestern Memorial Hospital for treatment, but his condition was not immediately available.

The officer is a woman in her late 20s or early 30s. She was shot in the leg and taken to Advocate Trinity Hospital for treatment, where she was treated and released.

The police department's office of news affairs released a statement saying the man stabbed was in serious condition.

Chicago Police Superintendent Garry McCarthy was briefly at the scene, and declined to speak to reporters at Trinity.

Check back for updates.

pnickeas@tribune.com

Twitter: @peternickeas

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Michael Jackson’s assistant files class-action lawsuit against “This Is It” tour promoter

LOS ANGELES (TheWrap.com) – Michael Jackson has been dead for more than three years now – but apparently he lives on in the halls of America’s legal system.

Jackson’s former assistant, Michael Amir Williams, filed a class-action lawsuit against concert promoters AEG Live in Los Angeles Superior Court on Friday, claiming he and others hired to attend to the “Beat It” singer during his would-be “This Is It” tour at London’s O2 Arena were deprived of at least $ 7.5 million dollars in pay.

According to the suit, AEG was responsible for the financial loss because it hired Dr. Conrad Murray — who was found guilty of causing the singer’s death – to care for Jackson.

The suit claims that Jackson “bargained for the addition of Class to help Michael Jackson give the ‘first class performance’ as required by Contract. The express terms of the Contract allowed for class to be paid by AEG up to $ 7.5 million and any amount over $ 7.5 million to be paid for by Michael Jackson.”

Unfortunately, AEG also hired Murray, who administered a fatal dose of Propofol to Jackson in June 2009, before the concerts could take place. (Murray was convicted of involuntary manslaughter for Jackson’s death in November 2011.)

AEG’s lawyer, Marvin Putnam of O’Melveny & Myers, calls the lawsuit “frivolous” and “truly unfortunate.”

“This lawsuit is clearly frivolous; it is literally barred by at least four different legal doctrines,” Putnam said in a statement provided to TheWrap. “The easiest is that Mr. Williams was a personal employee of Michael Jackson’s, and was never a beneficiary of Mr. Jackson’s contract with AEG Live. As such he has no legal standing to sue on that contract. Nor can he legally bring a claim for Mr. Jackson’s wrongful death. The idea that Mr. Williams purports to sue on behalf of the many persons who did enter into relationships with AEG Live and Jackson in connection with the This Is It Tour, and with whom AEG Live parted ways with the utmost friendship and respect, is disgraceful. It is truly unfortunate that so many see Mr. Jackson’s demise as an opportunity to grab as much for themselves as possible. This is just the latest wrongful death lawsuit with someone hoping to profit from Michael Jackson’s tragic death in the same way they profited from his life.”

Williams’ suit alleges breach of express terms of contract; breach of implied terms of contract; and breach of implied covenant of good faith and fair dealing. The complaint seeks unspecified damages, plus court costs and attorneys’ fees.

(Pamela Chelin contributed to this report)

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