Chicago seeks investors for potential Midway Airport deal

Mayor Rahm Emanuel's administration on Friday began testing the investment market's appetite for a potential deal to privatize Midway Airport, launching the process for finding prospective bidders.

The city posted a "request for qualifications," seeking expressions of interest and documentation of credentials from teams interested in financing, operating, maintaining and improving the Southwest Side airport, which is the nation's 26th busiest, with about 9 million passengers passing through annually.

The document reiterates a framework, laid out by Emanuel earlier, aimed at providing city taxpayers with a better deal than the widely criticized 75-year agreement to privatize parking meter operations, carried out during former Mayor Richard Daley's administration. Proceeds from the earlier deal were used to plug operating deficits, and meter rates rose sharply.

This time, proposed leases must be less than 40 years, which locks in the city for a shorter period.

Rather than awarding the city only an upfront payment, the private operator also must share revenue with the city on an ongoing basis. Initial proceeds would be used to pay down debt issued since 1996 to rebuild the airport, the mayor's office said. There is about $1.4 billion in outstanding debt.

Longer term, cash flow would be directed to city infrastructure needs. The mayor has pledged proceeds would not be used to pay for city operations.

The city also is seeking assurances that prices for parking, food and beverages will be kept reasonable.

This is the second time Chicago has looked at privatizing Midway. A 99-year lease that would have brought in $2.5 billion died in 2009 when the financial markets froze up.

Prospective bidders will be asked to prove their ability to raise the needed financing, said Tom Alexander, a spokesman for the mayor.

As in the first go-round, the city is using Credit Suisse Securities LLC as its lead financial adviser.

"The city's process and approach will be thorough and open," Lois Scott, the city's chief financial officer, said in a written statement.

Southwest Airlines, the airport's dominant carrier, supports the move.

Some observers have said a structure with a shorter lease and greater control for the city could translate into lower bids.

But Alexander said the city was confident investors "would gladly meet our terms and still make very attractive offers." The city has declined to estimate how much such a deal could garner.

The request for proposal states "there is significant potential to increase commercial revenue both in terms of variety of activities and increases in sales per passenger."

The city posted the request for qualifications shortly after the Federal Aviation Administration accepted its preliminary application to privatize the airport, clearing the way for the city to move forward in its evaluation process.

Prospective bidders were asked to formally express their interest by Feb. 22. If the city moves forward and seeks proposals, a privatization plan could be submitted to the City Council this summer.

kbergen@tribune.com

Twitter @kathy_bergen

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Quinn to name former prosecutor Fitzgerald to UI board

Gov. Pat Quinn will name former U.S. Attorney Patrick Fitzgerald to the University of Illinois Board of Trustees, the Tribune has learned.

Fitzgerald will replace first term trustee Lawrence Oliver II, according to a source who was informed of the decision.

The appointment would mark a quick return to the public eye for Fitzgerald, a career prosecutor who left the U.S. attorney's office in Chicago for private law practice in 2012 after a long run that included putting former Govs. George Ryan and Rod Blagojevich behind bars.

Oliver told the Tribune he received a call from Quinn's office Wednesday afternoon with the news that he would not be reappointed. Oliver, who was appointed as a political independent and maintains that affiliation, said he suspects he was not reappointed because he voted in a 2010 Democratic primary.

By law, U. of I. can have no more than five members from any political party, and there are already five Democrats on the board.

Both of the other two board members whose terms expire Monday say they were told they were reappointed to another six-year term. James Montgomery, a Democrat and a Chicago attorney, refused the governor's call to resign during the university scandal over politically connected admissions to the school. Dr. Timothy Koritz, an anesthesiologist at Rockford Memorial Hospital, was appointed by Quinn when he revamped the board in 2009. Koritz, a Republican, was told Wednesday that he would serve a second term.

Quinn’s office is expected to announce the appointments prior to U. of I.'s board meeting next week.

Oliver, chief counsel for investigations at the Boeing Co. who served on Quinn's Illinois Reform Commission, said he was disappointed by the governor's decision. He said he voted in the 2010 Democratic primary to support David Hoffman for U.S. Senate.

U. of I.'s  nine-member board has to be politically balanced, according to state statute. The current board has five Democrats, three Republicans and one Independent.

The U. of I. board is scheduled to meet next Thursday, at which time it will take its annual vote on a chairman and other officers of the board.

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Sorry, Spike: “Django Unchained” is now Quentin Tarantino’s highest-grossing movie

LOS ANGELES (TheWrap.com) – Maybe Spike Lee helped “Django Unchained” more than he hurt it.

Despite Lee’s plea that audiences stay away from Quentin Tarantino’s violent slave-revenge film for being “disrespectful to my ancestors,” “Django” has become Tarantino’s highest grossing movie ever at the domestic box office, the Weinstein Company announced Thursday.

It has taken in nearly $ 129 million since opening on Christmas Day. Tarantino’s previous biggest moneymaking film was “Inglourious Basterds,” which made $ 120.5 million domestically in 2009.

“Django,” a Best Picture Oscar nominee, stars Jamie Foxx, Christoph Waltz, Leonardo DiCaprio, Kerry Washington, and Samuel L. Jackson.

“Bob and I have had the most extraordinary filmmaker relationship with Quentin Tarantino, and we are proud to be here for this incredible milestone,” Weinstein co-chairman Harvey Weinstein.

As for Lee, before the movie opened, he complained loudly: “I can’t speak on it ’cause I’m not gonna see it,” the director said. “All I’m going to say is that it’s disrespectful to my ancestors. That’s just me … I’m not speaking on behalf of anybody else.”

He followed up his statement on Twitter, posting: ” American Slavery Was Not A Sergio Leone Spaghetti Western.It Was A Holocaust.My Ancestors Are Slaves.Stolen From Africa.I Will Honor Them.”

Movies News Headlines – Yahoo! News

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The Neediest Cases: Medical Bills Crush Brooklyn Man’s Hope of Retiring

Andrea Mohin/The New York Times

John Concepcion and his wife, Maria, in their home in Sheepshead Bay, Brooklyn. They are awaiting even more medical bills.

Retirement was just about a year away, or so John Concepcion thought, when a sudden health crisis put his plans in doubt.

For the past 100 years, The New York Times Neediest Cases Fund has provided direct assistance to children, families and the elderly in New York. To celebrate the 101st campaign, an article will appear daily through Jan. 25. Each profile will illustrate the difference that even a modest amount of money can make in easing the struggles of the poor.

Last year donors contributed $7,003,854, which was distributed to those in need through seven New York charities.

2012-13 Campaign

Previously recorded:

$6,865,501

Recorded Wed.:

16,711

*Total:

$6,882,212

Last year to date:

$6,118,740

*Includes $1,511,814 contributed to the Hurricane Sandy relief efforts.

“I get paralyzed, I can’t breathe,” he said of the muscle spasms he now has regularly. “It feels like something’s going to bust out of me.”

Severe abdominal pain is not the only, or even the worst, reminder of the major surgery Mr. Concepcion, 62, of Sheepshead Bay, Brooklyn, underwent in June. He and his wife of 36 years, Maria, are now faced with medical bills that are so high, Ms. Concepcion said she felt faint when she saw them.

Mr. Concepcion, who is superintendent of the apartment building where he lives, began having back pain last January that doctors first believed was the result of gallstones. In March, an endoscopy showed that tumors had grown throughout his digestive system. The tumors were not malignant, but an operation was required to remove them, and surgeons had to essentially reroute Mr. Concepcion’s entire digestive tract. They removed his gall bladder, as well as parts of his pancreas, bile ducts, intestines and stomach, he said.

The operation was a success, but then came the bills.

“I told my friend: are you aware that if you have a major operation, you’re going to lose your house?” Ms. Concepcion said.

The couple has since received doctors’ bills of more than $250,000, which does not include the cost of his seven-day stay at Beth Israel Medical Center in Manhattan. Mr. Concepcion has worked in the apartment building since 1993 and has been insured through his union.

The couple are in an anxious holding pattern as they wait to find out just what, depending on their policy’s limits, will be covered. Even with financial assistance from Beth Israel, which approved a 70 percent discount for the Concepcions on the hospital charges, the couple has no idea how the doctors’ and surgical fees will be covered.

“My son said, boy he saved your life, Dad, but look at the bill he sent to you,” Ms.  Concepcion said in reference to the surgeon’s statements. “You’ll be dead before you pay it off.”

When the Concepcions first acquired their insurance, they were in good health, but now both have serious medical issues — Ms. Concepcion, 54, has emphysema and chronic obstructive pulmonary disease, and Mr. Concepcion has diabetes. They now spend close to $800 a month on prescriptions.

Mr. Concepcion, the family’s primary wage earner, makes $866 a week at his job. The couple had planned for Mr. Concepcion to retire sometime this year, begin collecting a pension and, after getting their finances in order, leave the superintendent’s apartment, as required by the landlord, and try to find a new home. “That’s all out of the question now,” Ms. Concepcion said. Mr. Concepcion said he now planned to continue working indefinitely.

Ms. Concepcion has organized every bill and medical statement into bulging folders, and said she had spent hours on the phone trying to negotiate with providers. She is still awaiting the rest of the bills.

On one of those bills, Ms. Concepcion said, she spotted a telephone number for people seeking help with medical costs. The number was for Community Health Advocates, a health insurance consumer assistance program and a unit of Community Service Society, one of the organizations supported by The New York Times Neediest Cases Fund. The society drew $2,120 from the fund so the Concepcions could pay some of their medical bills, and the health advocates helped them obtain the discount from the hospital.

Neither one knows what the next step will be, however, and the stress has been eating at them.

“How do we get out of this?” Mr. Concepcion asked. “There is no way out. Here I am trying to save to retire. They’re going to put me in the street.”

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Liguori named CEO of Tribune Co.

Television executive Peter Liguori was named the new chief executive of Tribune Co. Thursday, taking the reins of the reorganized Chicago-based media company weeks after its emergence from bankruptcy.

In a widely expected announcement, Liguori, 52, a former top executive at Fox Broadcasting and Discovery Communications, was confirmed by Tribune Co.'s new seven-member board, which met for the first time Thursday in Los Angeles. In Chicago, Tribune Co. owns the Chicago Tribune, WGN-Ch.9 and WGN-AM.

"It can be daunting; I tend to view it as being exciting," Liguori said in an interview about his new job. "It's just a company of tremendous media assets with big iconic brand names, and many of those names are in major markets."

Liguori said he looked forward to leading Tribune Co. into a new era, focusing on content development across all media platforms. And despite speculation by analysts and industry insiders that the company was unlikely to retain its full portfolio of TV stations and newspapers, Liguori said he is hoping to keep Tribune's broadcasting and publishing businesses together under one roof.

"I don't care if it's newspapers or TV or digital operations or our other media assets: I'm hoping to make them work together," Liguori said. "And I'm really interested in building the company through innovation and through commitment to our mission of creating compelling content and best-in-class services."

Liguori replaces Eddy Hartenstein, who has been CEO of Tribune Co. since May 2011. Hartenstein will remain on the board and continue as publisher of the Los Angeles Times. He also will serve as special adviser to the office of CEO, according to Liguori.

"Eddy has done an exemplary job taking this company through some very, very rough times," Liguori said. "He has done a very good job as the publisher of a key asset, and I will benefit from having his advice and counsel and institutional knowledge at my side."

Tribune Co. filed for bankruptcy protection in December 2008, saddled with a total of $13 billion in debt after real estate investor Sam Zell completed his $8.2 billion buyout less than one year earlier. It emerged from Chapter 11 on Dec. 31, 2012, with a healthy balance sheet, owned by its senior creditors: Oaktree Capital Management; Angelo, Gordon & Co.; and JPMorgan Chase & Co.

Bruce Karsh, president of Los Angeles-based investment firm Oaktree, the largest Tribune Co. shareholder with about 23 percent of the equity, was named chairman of the new board, which also includes Liguori; former Yahoo interim CEO Ross Levinsohn; entertainment lawyer Craig Jacobson; Oaktree managing director Ken Liang; and Peter Murphy, a former strategy executive at Walt Disney Co.

A Bronx native and Yale graduate, Liguori is a former advertising executive who transitioned into television more than two decades ago. He is credited with turning cable channel FX into a programming powerhouse during his ascent to entertainment chief at News Corp.'s Fox Broadcasting. More recently, he was chief operating officer at Discovery Communications Inc., where he helped oversee the rocky launch of the Oprah Winfrey Network. He became interim CEO in 2011 after the previous executive was forced out; he left the company when Winfrey made herself CEO of OWN. Liguori has been working since July as a New York-based media consultant for private equity firm Carlyle Group.

Liguori said job one will be assessing Tribune Co.'s diverse portfolio of assets, which include 23 television stations; national cable channel WGN America; WGN Radio; eight daily newspapers, including the Chicago Tribune and Los Angeles Times; and other properties, all of which the reorganization plan valued at $4.5 billion after cash distributions and new financing.

Despite its roots as a newspaper company, broadcasting has supplanted the declining publishing segment as the core profit center for the company. Liguori acknowledged broadcasting will be a focus going forward, but not necessarily at the expense of Tribune Co.'s newspaper holdings.

"I'm tasked to be a chief executive officer and a general businessman, and I'm going to take the same principles that I've used in broadcasting, and (extend) them out to all of our business," he said.

Liguori became president of Fox's FX Networks in 1998, when it was a small basic cable channel airing mostly reruns. Elevated to CEO in 2001, he remade FX by offering edgy original programming such as the "The Shield," "Nip/Tuck" and "Rescue Me," creating a string of first-run successes.

Unlocking the value of WGN America, which lags top cable networks such as TBS and FX, will be a priority, Liguori said.

"In this very co-dependent media environment, it's not just sitting there and focusing on how quickly we could grow the bottom line," Liguori said. "The bottom line is the outcome of great content, great marketing, which will drive great ratings, which will attract advertisers, which will further our relationship with affiliates, and will lead to natural growth based on the fact that we have high levels of usership."

Content development will also be key for Tribune Co.'s other media properties, including newspapers, Liguori said.

"I look at the newspapers and appreciate what we do for the local communities, and do recognize that the newspaper business is challenged right now," he said. "But how do we innovate, how do we go out and create stories, create coverage, servicing community and spreading that content across all media platforms?"

In the face of digital competition and sagging publishing industry revenue, Tribune Co.'s newspaper holdings have declined to $623 million in total value, according to financial adviser Lazard. With some newspaper owners expressing interest in acquisitions, Liguori said: "I have a fiduciary responsibility to hear those out."

"Those would be evaluated on an as-come basis. However, with all that being said, it's my job to make sure it doesn't stop me from focusing on our day-to-day business and growing the assets that we have."

He added: "Newspapers are a core part of our business."

Further, Liguori said all of Tribune Co.'s assets will be assessed, with an eye toward maximizing performance, and ultimately, value for the company. That includes real estate holdings such as Tribune Tower in Chicago and Times Mirror Square in Los Angeles, which were on the block until they were taken off the market in 2009.

"In places like Chicago and LA, particularly, there's a bunch of underutilized space that's being leased and has high demand and getting very good rates," Liguori said. "As I look toward the real estate assets, I've just got to ascertain what the value of the properties are and are we best utilizing them."

With a clean balance sheet and the company operating profitably, Liguori said strategic acquisitions will also be on the table, as Tribune aspires to be more of a growth company going forward.

"I think it really changes the driving mission of Tribune versus the past four years, where it undoubtedly had to be a bit shackled," he said. "I look forward to seeing what possibilities are out there and with great financial rigor and diligence, determining whether or not acquisitions would help us."

While the first board meeting was held in Los Angeles, Liguori said it doesn't presage a westward migration for the 166-year-old Tribune Co.

"The corporate office will continue to be in Chicago, and I'm going to be spending considerable time there," Liguori said. "There's great tradition and great history of Tribune being an iconic brand in Chicago."

rchannick@tribune.com | Twitter @RobertChannick

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Man killed after high school game ends in melee

The Simeon and Morgan Park High School basketball teams ended their game at Chicago State University with a melee between players on the court. (Nuccio DiNuzzo/Chicago Tribune)

Staff report

5:12 a.m. CST, January 17, 2013

A 17-year-old boy was shot and killed outside a Chicago Public Schools high school basketball game at Chicago State University Wednesday night after a melee broke out in a handshake line after the game.

The boy was taken in serious condition to Advocate Christ Medical Center, according to the Chicago Fire Department, which had said he was 20 years old. The Cook County medical examiner's office identified the boy as Tyrone Lawson, 17, of the 11600 block of South Peoria Street.

The shooting happened about 9:20 p.m. outside the campus gymnasium near 95th Street and King Drive, said police News Affairs Officer Daniel O’Brien. He was pronounced dead at Christ hospital Wednesday night. He was pronounced dead at 9:59 p.m. there, a spokesman for the Cook County medical examiner's office said. 

Chicago State Police put out a quick message to nearby officers, asking them to watch for a jeep that was pulled over east of the school a short time later, police said, citing early reports. Two people were taken into custody and police found a gun inside the jeep.

The game was between Simeon Career Academy and Morgan Park High School, both schools located on Vincennes Avenue about 30 blocks apart, at 81st and 111th Streets.

An argument in a handshake line after the game preceeded the shooting, police said. The gym was tense and word spread through the gym that someone had been shot.

Police said the argument spilled into the parking lot and someone pulled out a weapon and shot the 20-year-old.

Each team was held for longer than normal in the locker rooms after the game. Nothing outside ordinary bumps and physical contact happened during the game.

Chicago police responded to the scene but are not involved with the investigation, O'Brien said.

Chicago State Police refused to comment about the incident and city police referred inquiries to them and Illinois State Police, who said they were not involved in the investigation.

Check back for details.

Contributor Mike Helfgot and Tribune reporters Peter Nickeas, Rosemary Regina Sobol and Jeremy Gorner contributed to this story.

chicagobreaking@tribune.com
Twitter: @chicagobreaking

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PC titans take notes from tablets to regain customers

SAN FRANCISCO (Reuters) – Personal computer makers, trying to beat back a tablet mania that’s eating into their sales, are making what may be a last-ditch attempt to sway customers by mimicking the competition.

Many of the laptops to be unveiled around the world in coming months will be hybrids or “convertibles” – morphing easily between portable tablets and full-powered laptops with a keyboard, industry analysts say.

The wave of hybrids comes as Intel Corp and Microsoft Corp, long the twin leaders of the PC industry, prepare to report results this week and next. Wall Street is predicting flat to sluggish quarterly revenue growth for both, underscoring the plight of an industry that has struggled to innovate.

In 2013, some are hoping that will change.

With the release of Microsoft’s touch-centric, re-imagined Windows 8 platform in October and more power-efficient chips from Intel, PC makers are trying to spark growth by focusing on creating slim laptops with touchscreens that convert to tablets and vice versa.

Microsoft, expanding beyond its traditional business of selling software, is expected this month to roll out a “Surface Pro” tablet compatible with legacy PC software developed over decades.

That’s a major selling point for corporate customers like German business software maker SAP, which plans to buy Surface Pros for employees that want it, said SAP Chief Information Officer Oliver Bussmann.

“The hybrid model is very compelling for a lot of users,” Bussmann told Reuters last week. “The iPad is not replacing the laptop. It’s hard to create content. That’s the niche that Microsoft is going after. The Surface can fill that gap.”

Apple’s iPad began chipping away at demand for laptops in 2010, an assault that accelerated with the launch of Amazon.com Inc’s Kindle Fire and other Google Android devices like Samsung Electronics’ Note.

With sales of PCs falling last year for the first time since 2001, this year may usher in a renaissance in design and innovation from manufacturers who previously focused on reducing costs instead of adding new features to entice consumers.

“People used to be able to just show up at the party and do well just because the market was going up,” Lisa Su, a senior vice president at Advanced Micro Devices, which competes against Intel. “It’s harder now. You can’t just show up at the party. You have to innovate and have something special.”

At last week’s Consumer Electronics Show in Las Vegas, devices on display from Intel and others underscored the PC industry’s plan to bet more on convertible laptops.

Lenovo’s North America President Gerry Smith told Reuters last week that over the holidays he sold out of the company’s “Yoga”, a laptop with a screen that flips back behind its keyboard, and the “ThinkPad Twist”, another lightweight laptop with a swiveling screen.

Intel itself showed off a hybrid prototype laptop dubbed “North Cape”, housed in a thin tablet screen that attaches magnetically to a low-profile keyboard. And Asus showed a hefty 18-inch, all-in-one Windows 8 PC that converts to a tablet running Google’s Android operating system.

Lenovo and Asus, which have both won positive reviews for their devices in recent months, increased their PC shipments by 14 percent and 17 percent respectively last year, according to Gartner.

“The number of unique systems that our partners have developed for Windows has almost doubled since launch. That gives an indication of how much innovation is going into the PC market,” Tami Reller, chief financial officer of Microsoft’s Windows unit, told Reuters.

FINGER-POINTING

To be sure, hybrids with detachable or twistable screens do not yet account for a significant proportion of global PC sales, and consumers still need to be sold on their benefits.

Previous attempts by PC makers to reinvigorate the market have had limited success. Pushed by Intel, manufacturers launched a series of slimmed down laptops early last year with features popular on tablets, like solid-state memory.

They were too expensive, often at more than $ 1,000 apiece, and failed to arrest the PC decline.

Microsoft’s Windows 8 launch in October brought touchscreen features but failed to spark a resurgence in PC sales many manufacturers had hoped for. A round of finger-pointing ensued, with PC and chip executives blaming a shortage of touchscreen components and others saying it was the manufacturers that sharply underestimated consumer demand for touch devices.

Regardless, the entire PC ecosystem is onboard for 2013. Almost half of the Windows laptops rolled out this year may have touch screens. Of those, most will be in convertible form, according to IDC analyst David Daoud.

Further blurring the distinction between kinds of devices, about a quarter of upcoming Windows 8 gadgets will be tablets that can easily act as laptops with the help of keyboard accessories, he added.

But buyers may have to wait until the second half of the year to see many of them.

“The most likely scenario today is for the industry to have these products ready for the back-to-school season,” Daoud said.

(Reporting and writing by Noel Randewich; Additional reporting by Poornima Gupta and Bill Rigby in Seattle; Editing by Tim Dobbyn)

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Sniping, then singing as ‘American Idol’ returns

LOS ANGELES (AP) — There was no hair-pulling between Mariah Carey and Nicki Minaj on the season debut of “American Idol,” although some viewers may have been reduced to it.

The pop divas exchanged insults worthy of middle schoolers, fellow freshman judge Keith Urban looked trapped between them, and there was a whiff of make-believe Wednesday about the show’s touted feud.

“We can have accessories. I didn’t know that was allowed. That’s all I’m gonna say,” Carey commented archly about Minaj’s flashy, drum major-style hat.

The rapper took offense.

“Why’d you have to reference my hat?” Minaj said, with Carey then accusing Minaj of rudeness to her during an earlier elevator meeting.

Mercifully, a contestant arrived to break up the bickering and remind us that we tuned in to a talent show, not an episode of “Real Housewives of American Idol.”

When the action resumed, Minaj demonstrated a magnificent talent for eye-rolling and upped the ante with a muttered insult.

“If she called me something that begins with a ‘b’ and ends with an ‘itch,’ I rebuke it,” Carey declared.

Whether the clash is real or not, Minaj’s scrappiness came off as far more entertaining than Carey’s demure, even queenly manner. Carey is getting a truly royal paycheck: $ 18 million, to Minaj’s $ 12 million.

The award for least self-absorbed judge goes to genial country singer Urban.

The two-hour episode opened by showcasing last year’s winner, Phillip Phillips, and those alumni with established careers, including Carrie Underwood, Kelly Clarkson and Jennifer Hudson.

Then host Ryan Seacrest brought “American Idol” back down to earth and to its new judges.

“Our legacy continues as a new era begins,” he said, reciting the panelists’ resumes, including record sales, Grammys won and, in Carey’s case, vocal range (five octaves, “the definition of diva,” Seacrest said).

Cue the parade of good, bad and touching performances and biographies, with contestants facing serious challenges once again an “Idol” hallmark.

The judges, including veteran Randy Jackson, hardened their hearts and rejected a young man who had lost a leg to cancer but melted for a teenage girl whose family fosters children with medical concerns and another singer with partial hearing loss.

Forty-one people survived the New York auditions to sing another day in the Hollywood rounds, with the action moving to Chicago on Thursday’s episode.

“I feel like we jell well in a weird, crazy way,” Minaj declared optimistically of the panel near the episode‘s conclusion.

Fox certainly hopes so. Last season, “Idol” lost its status as the most-watched TV program for the first time since 2003, eclipsed by NBC’s “Sunday Night Football,” and pegged its lowest-rated season since it debuted in summer 2002.

___

Online:

http://www.fox.com

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The New Old Age Blog: Officials Say Checks Won't Be in the Mail

The jig is up.

Two years ago, the Treasury Department initiated its Go Direct campaign to persuade people still receiving paper checks for their Social Security, Veterans Affairs, S.S.I. and other federal benefits to switch to direct deposit.

“At that point, we were issuing approximately 11 million checks each month,” or about 15 percent of the total, Walt Henderson, director of the campaign, told me.

After putting notices in every monthly check envelope, circulating public service announcements and putting the word out through banks, senior centers, the Red Cross, AARP and other organizations, the Treasury Department has since shrunk that number to five million monthly checks.

That means 93 percent of those getting federal benefits are using direct deposit or, if they prefer or lack a bank account, a Direct Express debit card that gets refilled each month and can be used anywhere that accepts MasterCard.

“So people have been getting the word and making the switch,” Mr. Henderson said. Now, federal officials are pushing the last holdouts to convert to direct deposit by March 1.

Although officials say the change is not optional, the jig isn’t entirely up. If you or your older relative does not respond to their pleading, “we’re not going to interrupt their payments,” Mr. Henderson said. But the department will start sending letters urging people to switch.

The major motive is financial: shifting the last paper checks to direct deposit or a debit card (only 2 percent of recipients go that route) will save $1 billion over the next decade, the department estimates.

But safety enters the picture, too. One reason some beneficiaries resist direct deposit, Mr. Henderson said, is that they fear their electronic deposits can be hacked or diverted. Having grown up in a predigital age, perhaps they feel safer with a check in their hands.

But they probably aren’t. In 2011, the Treasury Department received 440,000 reports of lost or stolen benefits checks. With direct deposit, “there’s no check lingering unattended in a mailbox,” Mr. Henderson noted.

The greater reason for sticking with paper is probably simple inertia. “It’s human nature to procrastinate,” he said.

But unless you or your relatives want a series of letters from the Treasury Department, it is probably time for the last fence-sitters to get with the program.

They don’t need to use a computer. People can switch to direct deposit, or get the debit card, at their banks or the local Social Security office. More simply, they can call a toll-free number, (800) 333-1795, and have agents walk them through the change. Or they can sign up online at www.GoDirect.org.

They will need:

1. Their Social Security number.
2. The 12-digit federal benefit number found on their checks.
3. The amount of the most recent check.
4. And, for direct deposit, a bank or credit union routing number, usually found on the front of a check. They can have direct deposit to a savings account, too.

A caution for New Old Age readers: If you think your relative has not switched because he or she is cognitively impaired and can no longer handle his finances, you can be designated a representative payee and receive monthly Social Security or S.S.I. payments on your relative’s behalf. This generally requires a visit to your local Social Security office, documentation in hand.

---

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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FAA grounds Dreamliners in U.S.

Federal officials say they are temporarily grounding Boeing's 787 Dreamliners until the risk of possible battery fires is addressed. (Jan. 16)

With its new plane ordered to stay on the ground, Boeing Co. confronts a full-fledged crisis as it struggles to regain the confidence of passengers and the airline customers who stood by the 787 Dreamliner during years of cost overruns and delivery delays.

A second major incident involving "a potential battery fire risk'' prompted the Federal Aviation Administration on Wednesday to temporarily ground all 787s operated by U.S. carriers until it is determined that the lithium-ion batteries on board are safe.

The order affects United Airlines, which is the first U.S. customer. The FAA gave no indication how soon the plane could resume flying.

The decision came the same day Japanese airlines grounded their 787s after an emergency landing and five days after the FAA and U.S. Transportation Secretary Ray LaHood declared that the flying public is safe on Dreamliners. When it offered those assurances Friday, however, the FAA also announced a comprehensive review of the 787's design, manufacture and assembly.

The grounding represents a significant setback for Chicago-based Boeing, which is marketing the fuel-efficient, mainly carbon-composite jetliner as a vision of the future of commercial passenger aviation. The development of the plane was marred by long production and delivery delays, but it is selling well and has customers around the world.

"We stand behind its overall integrity. We will be taking every necessary step in the coming days to assure our customers and the traveling public of the 787's safety and to return the airplanes to service," Jim McNerney, Boeing's chairman and chief executive, said in a statement. He said Boeing is working with the FAA to find answers as quickly as possible.

Chicago-based United Airlines has six 787s, but it has been flying only one on flights between O'Hare International Airport and Houston. The airline said Wednesday night that it will accommodate customers on other planes. The domestic 787 flights were to end in late March, when United's first 787s were to begin serving international routes. 

United said it "will work closely with the FAA and Boeing on the technical review as we work toward restoring 787 service."

Foreign carriers are not affected by the FAA order, but LOT Polish Airlines canceled its inaugural flight celebration at O'Hare on Wednesday night, even before the flight landed from Warsaw.

"We just think it would be inappropriate to go ahead with the activities," said Frank Joost, regional sales director of the Americas for LOT. He described the FAA grounding of 787 flights as a "surprise."

LOT also canceled the Dreamliner's return flight to Warsaw. Passengers hoping to depart on the 9:55 p.m. flight said they were disappointed. Many were rebooked on Lufthansa through Munich.

Suzy Zaborek, 27, of Chicago was at Chicago O'Hare on Wednesday night waiting for her father to arrive from Poland aboard the 787. He came home early specifically to ride on the inaugural flight.

Zaborek had not been following the Dreamliner woes in recent weeks and the dramatic groundings on Wednesday.

"I'm glad I didn't know because I wouldn't have let him get on on of those," she said.

The FAA decision to ground all U.S.-registered 787s was the direct result of an in-flight incident involving a battery earlier in the day in Japan, FAA officials said. It followed another 787 battery fire that occurred Jan. 7 on the ground in Boston.

Both failures resulted in the release of flammable materials, heat damage, smoke and the potential for fire in the electrical compartments, the FAA said.

"Before further flight, operators of U.S.-registered Boeing 787 aircraft must demonstrate to the FAA that the batteries are safe," the regulatory agency said. The statement said the FAA will work with Boeing and airlines "to develop a corrective action plan to allow the U.S. 787 fleet to resume operations as quickly and safely as possible."

The FAA said it took drastic action because it determined that battery failures are "likely to exist or develop" in other planes.

Lithium-ion batteries can catch fire if they are overcharged, and the fires are difficult to extinguish, Boeing has previously said. Still, lithium-ion is the right choice for the 787, Boeing officials said.

Earlier Wednesday, Japan's two largest airlines grounded their fleets of 787s after one of the jets made an emergency landing and passengers were evacuated via emergency slides.

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