New Details in Plane Crash: Bloomberg West (07/08)

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July 8 (Bloomberg) -- On today's "Bloomberg West" the focus is on innovation, technology, media and the future of business. Hosted by Emily Chang with Editor-at-Large Cory Johnson and Senior Correspondent Jon Erlichman from Bloomberg's San Francisco studio, it showcases the personalities, companies and trends that are transforming the global economy. (Source: Bloomberg)

? live from pier 3 in san francisco, welcome to the late edition of "bloomberg west" where we cover all the global technology and media companies that are reshaping our world.

I'm emily chang.

Our focus is on technology, innovation, and the future of business.

Let's get straight to the rundown.

What caused this weekend's deadly plane crash?

New details and the investigation showing the plane was coming in much more slowly than it should have been.

307 people on board when the flight slammed into the ground and burst into flames.

Only two were killed.

And how technology may have helped save lives in a disaster.

Has president obama outlined his new management agenda?

We talked to the management officer about how silicon valley can make washington smarter.

The national transportation safety board says interviews with the pilots on board a flight 214 has begun.

It was going at a speed of 118 miles an hour before impact.

About 35 miles below the recommended landing speed before -- as it flew in.

Here is what deborah had to say at a briefing this afternoon.

Our atc team has looked back through communications, through voice communications, and we have no evidence of any distress call or problem report with respect to the air craft prior to the accident.

I want to get the latest on the investigation with cory johnson.

What else can you tell us?

What stood out to you?

The ntsb conference was interesting because there are data points that back of the first datapoint that we saw on this.

It wasn't just that the plane was coming in to slow, but it might have been too fast initially.

Then it dramatically slow down.

About 190 knots, not too far out, suddenly slowing down well below the recommended speed.

Then the plane actually hit the jet way or reached the runway, it was accelerating up to 50% power.

It started to look like it was coming in too fast, tried to correct by slowing down too much, then tried to correct by aborting the landing.

That is when it's got out of control.

What about the trajectory of the dissent?

It is sounding like that was not the case.

What happened with the trajectory, it was compared to other flights on saturday and the regular trajectory is a straight line coming down on the runway.

This one came at a little bit higher, much deeper in decline and tried to correct at the last minute and did not make it.

Those data points, on what this flight did and what was recommended that there were issues when the flight came in.

The investigation continues with those pilots under way.

It will be back with you later in the show.

Barnes and noble ceo william lynch resigning effective immediately.

A new ceo will be for nook media and bonds and noble.

As the nook fails, the ceo is out, what do you make of this?

It is a dramatic development in what has been a remarkable story the last few months.

We know barnes and noble came out with increasingly weak results, not just because of the traditional book business but the weakness of their own tablet business.

Recently as a, they said that they can't afford to continue making the tablets.

They will have to team with an outside partner.

You could look at this as william lynch being the fall guy for the weak performance in the company, but barnes and noble has not been shedding much light about the reasons for his departure.

We don't know if this is part of his own frustrations.

But this is the guy that was supposed to lead barnes and noble through the digital revolution.

There was early success , but on a worldwide scale, they have run into a lot of competition with the likes of amazon, google, and apple right now.

There has been a lot of pressure that has forced a lot of change at the company.

You spoke with william lynch a few years ago and reiterated their digital strategy.

They were emboldened by this strategy.

What does this mean for the business?

Because of performance, this is a company that has had the telegraph where it could be going.

Included was the possible spinoff of the digital business.

The founder of bonds unknowable whose comment can be clearly seen in this press release is interested in the retail business.

Barnes and noble saying right now that we will look good strategic alternatives.

Microsoft became be strategic investor in that business along with pearson.

Wondered if microsoft would buy the business.

It is hard to say.

They wanted to have good placement in the tablet business, but whether they want to go out and bought a whole fang is another story.

We hope they are continuing to look at the auctions on the table.

Resigning effective immediately as the strategic review continues.

Thanks, we will be right back with more of bloomberg west.

? ? welcome back to "bloomberg west." i'm emily chang.

Back to the investigation of the deadly plane crash at san francisco international airport.

Interviewing the four airlines' pilots right now.

There are many questions surrounding the crash including what role, if any, technology plays.

The indicator which helps determine altitude on approach was out of service on saturday.

My next guest has 30 years of aviation experience and the deputy director of the flight standards division.

He joins me now from washington d.c.. i know you were listening on the press conference earlier today.

What stands out to you?

I am glad to be here, and what stands out to me is how slow the airplane got on final approach.

It got below the reference speed, the minimum speed it should of been at.

It is hard to imagine what would have allowed the aircraft a slow down that much.

Why might that have happened?

Of the ntsb will be looking at the aircraft itself to make sure there is not something wrong with the aircraft.

They will spend a lot of time now trying to correlate the data they have from the flight data recorder, the cockpit voice recorder, han and what the pilots say they did.

They might have had the wrong modes elected or distracted by something, or maybe something else going on.

Normally there would be no reason for the aircraft to get that slow on an approach.

There is one thing nobody has been talking about.

What is that?

Electronic glide slope, the landing system was disabled because of construction.

People don't understand there was a backup procedure published for that runaway using next- generation technology that don't require a ground-based system at all.

Had they decided to do it, they could have selected the procedure and flown using technology in order to be more stabilized on approach.

The other thing, there is a set of lights at the end of the runway assisting them and making sure they are on the right angle.

There are on board systems that can draw a vertical line.

There is a basic piloting skills.

It is 1,000 feet to the end of runway.

It looks like a pilot error was a factor here?

I am looking to make sure nothing was wrong with the airplane.

They have not given any indication that they have found a function on the airplane.

I think they have just about ruled out.

And, of course, human performance.

The investigation is not going only focus on that, but that is an area they will be looking closely at.

You say it is not looking good right now?

The highest probability would be that the crew somehow didn't intervene when the aircraft started to get that slow.

30% below the minimum speed, that is very significant as you have heard the board say.

There are indications on the aircraft that alert the crew.

There has also been attention paid to the fact that this pilot was doing his initial operation experience.

He had 40 hours, and in the u.s. the minimum is 25, which can also be reduced.

You get the operating experience with the airline.

If he was a u.s. pilot, he would have likely been signed off already.

If the speed slowed down so greatly, why wouldn't the pilots have intervened?

You have heard people talk about the previous accident in england where the engines didn't spool up.

It seems that they be able normally and created a trust.

It is hard to imagine unless they became distracted that they would allow the speed to deteriorate that far.

That said, it deteriorated pretty quickly.

If you look at the video, it looks like the airplane pitched up pretty quickly.

Air speed bleeds quickly in that maneuver.

It was not managed on that approach.

There are critics that say pilots these days rely too much on technology to help them land planes.

The former inspector general for the department of transportation, it seems that if the glide indicator had been on, it could have prevented this entirely.

I don't think so.

The fact is, there are other methods including light at the end of the runway which are the primary reference to make sure that you are on the right path.

They have a visual indication they are on the right path.

There has to be a balance between hand-flying in using technology.

Technology allows the aircraft to be more stable and put airplane's closer together safely.

We have to make sure there is enough training for pilots to have the skills to be able to land the aircraft manually when they need to.

Right now, we think the violence -- the balance was struck at the right place.

More questions yet to be answered.

The former deputy director of the faa, thank you for joining us.

President obama wants to make the government's smarter and more efficient.

How tech can help, next.

? ? welcome back to "bloomberg west." i'm emily chang.

There is key support for the $24 billion buyout plan that would shelter dell shareholders because of the declining pc business.

The move gives more leveraged to dull the was not planning to sweeten the deal ahead of a shareholder vote this month.

Turning to gaming, day one for don mattrick at zynga.

He has had his eye on the farville maker for a while.

He explored by in the game maker in 2010 when he was the head of microsoft entertainment division.

He was interested in adding social games to the xbox.

I want to bring in bloomberg news ' doug macmillian.

Don mattrick had an interesting career.

He was at ea then microsoft.

One common theme in his career has been casual games, bringing games to the masses.

For millions of people that don't normally play games, he struck deals with netflix and hulu, turning a video-game system and a much more.

They are obviously appealing to people that are not traditionally core gamers.

He spoke with mark pincus directly.

They had negotiations in 2010, but it was a very different company than.

It was on the rise.

They are doubling in value every few months, it seems like.

On their way to an ipo.

Many thought was the next hot company, and the c.e.o. wanted an independent company in did not want to get taken over.

What did they make of this move?

Is an unusual move.

He is at the top of his game, and attractive job at microsoft running xbox.

Zynga is in decline and in retreat.

And he is bold and to mark pincus.

Where does that leave him?

In the interests here is that he wanted to be ceo and was not going to get that at microsoft.

Steve ballmer is not leaving any time soon.

He wanted to stake his claim to be the guy that turns around zynga.

There was an open position at ea.

I am speculating at this point, but it might have bet a more -- been a more boring idea.

Zynga needs a new game plan and he wants to put his stamp on the company.

We will be watching to see how it goes.

Thank you.

President obama says one of the main goals of his second term is to create a smarter and more efficient government and hopes technology will help him do it.

He has inc.

Tech and the government programs and appointed the first technology officer.

I asked todd park how tech will help the president accomplish his goal.

Recently, it was austin, texas where there was an executive order that says going forward, the new government data resources shall be, by default, openly accessible while protecting privacy and national security.

It will change the default to open and available, really turbocharging american entrepreneurs to create business and jobs.

This is america of how's data.

We should give it back to the public for middle-class job creation.

In light of edward snowden, how do you ensure that it doesn't expose us to doesn'trisks?

-- to more risks?

It is incredibly important to protect privacy and one parameter to understand is that all the data being published is, by definition, non-personal.

About the weather, the affordability of hospitals and colleges.

It can be used to by entrepreneurs as fuel to help grow the economy, create jobs, and deliver useful services.

It has been said that edward snowden severely damaged national security.

What has been done to prevent something like that from happening again?

There has been a lot of work done to secure information that is not work have been directly involved in but i can refer you to others.

What impact will the plan to have on government contracts given that you say this access to data is so important?

One benefit to accessing the data means it wilhelm not just data being open to the public, but will be shared across government agencies.

That includes parts of agencies with contractors to be able to get data more easily.

It will result in better services to citizens at lower cost.

You created the presidential innovation fellowship program that uses private sector talent to improve government.

Tell me about this program and how it works.

This is a program that we launched last summer that basically aims to bring incredible private sector attack and innovators in the government for a 6-12 month tours of duty to work with top innovators on game changing products.

We pull from a pool of 700 last august.

Everything from opening up government data to making it a lot easier for government to do business with tech startups.

Actually enabling veterans to download their own personal health records in a way that is easy and helps them.

How do you also make sure -- one of the things we are doing is that we are taking a lot of techniques in silicon valley has pioneered, and we are executing changed products inside the government.

A lot of fans are being applied by innovative civil servants that are grabbing the reins and leverage in these practices to make change happen.

That was white house chief technology officer todd parker.

Who could forget the miracle landing on the hudson river?

Hear what the hero pilo thas to ot has to say, next.

? ? welcome back to bloomberg west were recovered technology, innovation, and the future of business.

I'm emily chang.

There were hundreds of people on board the flight that crashed on sunday.

Even though the tale was wrecked off and it burst into flames almost immediately after the crash, only two people were killed.

What role that technology play?

Cory johnson is standing by with that part of the story.

There were lots of advancements in technology that made this plane crash lot safer than it would have been otherwise.

Sea to bolted to the floor were stronger than previous plans, and there was material used excessively on the interior of the flight.

But from the police and firefighters, the first responders to this disaster, what it came down to was not cameras or special radio equipment, it was old-fashioned fire fighting and bravery by some of those people.

Listen to the police officer describe his actions on saturday afternoon.

All we had was the chute.

That's what we did.

One or two passengers off, one gentleman standing up there was the last one off i believe.

Running up the chute.

Imagine these guys showing up at the scene and knowing that they have people inside.

They have a plane on fire and leaking fuel.

It looked like a hose of gasoline flying out of the engine with fire all around him and he handed his knife to the crew members said they can cut loose seat belts or what ever try to get passengers out.

It helped save people.

What about the question that a fire truck ran over one of the victims had died?

They are not telling us anything about that.

They say there was an investigation under way at looking at that possibility.

They were asked a dozen questions about this during the press conference and would not budge to give any more information except that the safety board and the coroner's office was looking into that.

They were asked a lot of questions about their actions on these planes, putting their own lives in danger.

Here is what they had to say about the very notion of bravery.

I am very proud of the members that stand behind me and all the members of the police department for the extraordinary efforts they made with an enormous amount of team work that was displayed and heroism displayed to do what we needed to do on saturday.

Dodge there was talk of merging the different systems, it did not work.

Relay commands, fundamentally the stories of heroism, they were very moving.

Almost everyone was moved to tears.

Cory johnson at sfo.

Thank you.

What was it like to be on a flight to 14? when did passengers realize something was wrong?

Ben was trying to get back home to his family and joe grimm.

He told us what happened when the plane hit the runway.

Everybody was screaming, total disbelief it was happening to wus.

Everything stops and you realize you are alive, sitting in a plane with no knowledge of the extent of the damage outside.

There was no smoke and no fire inside.

Realizing that we will get out of here.

You can catch the full interview right here on bloomberg television.

In 2009, captain sullenberger successfully made an emergency landing on the new york hudson river.

Captain sully has become a voice for safety in the aviation industry.

The autopilot computer systems, does it make for a safe landing?

They have to be a good match and a good team.

They are good at adapting and seeing things for the first time.

There are technologies in the cockpit, the airport's will provide electronic vertical path to the runway to help us find the right approach path.

Unfortunately, because of airport construction, that device was not operable that day.

There is one less technology available to these particular pilots.

Are you talking about the glide slope indicator turned off at that time?

It had been turned off for several days.

How do you think it could have been a problem?

Is just one bit of information they might look at.

It was a 10-hour flight landing in san francisco at 11:30 in the morning.

The bottom of their alertness and body schedules.

I would have used all of the available resources to help me guide the plane to the runway.

It made it a little bit easier and might help detect the deviation sooner.

Sorry, we know that visual flight rules were in effect, does that mean the technical instruments were not being used at that time?

It means that you have good enough visibility and a cloud height so you can fly thewithout visuals.

Having electron a glide slope would have been an additional aid.

We don't know how important it is, but one more bit of information we know that they did not have available to them.

There are other technologies that would have held them to find the right path to the runway.

We have a protocol in place at zero major airlines -- all major airlines.

They have checks and balances to make sure that certain distances from the runway, they are at the proper height.

We need to find out what the human factors were at this case that did not happen in time.

I know you have landed multiple plains at sfo, have landed multiple times that sfo.

There was one time were the pilot aborted and circled back around.

Multiple producers have had similar situations.

In san francisco a particularly challenging airport?

In some ways, it is.

The u.s. regulation authority has designated san francisco, among other airports, a special airport.

A u.s. airline, having someone very dear to the airplane and not having 100 hours would have been prohibited under our rules from taking off and landing at that particular airport.

When i flew four years ago on the series of flights that led to the hudson river landing, i had been flying with a great pilot.

This was his first week after being trained for a month.

He had flown with an instructor pilot with him, and when he flew with me, it was his first unsupervised trip.

He could'nt land at n't land at some airports because they were prohibited airports or they were filled with snow and ice.

Some of the procedures and some of the high terrain on the airport.


Sullenberger, the miracle landing on the hudson river from 2009. we will be back in just a moment.

? ? welcome back to "bloomberg west." i'm emily chang.

Cbs is launching a partnership to bring csi new york and more to netflix.

How much impact are they have been on television and film studios?

I am joined by the managing director of rbc capital markets with an outperform rating on netflix.

It seems every day they are striking a new content d.o.. what stands out to you?

They occurred right after a dissolution of negotiations with viacom.

Netflix said they would not do a blockbuster deal but just some shows.

Viacom said no.

Cbs announced today, but pbs and fox the last week.

The market is interpreting this as netflix getting its way, able to do these elected deals and getting anybody with content.

Of the studios used to call the shots, here are all shows and you can have them but it seems like they are working the other way around.

I have gone from business -- and we think it is on its with 35 million by the end of the year, 40,000,001 year from now.

Far above and beyond hbo.

It is the single largest subscription business in the u.s.. they have money with which to buy new content.

I don't want to over- extrapolate.

Netflix can always call the shots.

If the market over-extrapolated, that will be a risk.

It is at least more balanced than it used to be.

Do you think it will get to a point where they are calling the shots?

I think one single company calling the shots is unlikely but they have more leverage than they used have.

What about the content leverage?

I think it will be helpful at the margin.

I don't think 50% will be our original, i think it will still be 5% or 15%. it gives people the anticipation reason to stick around.

Hbo always had this.

You knew that there were other shows coming.

Netflix never had that.

You may not like house of cards but you know that they are bringing new are originals.

Only $8 a month.

The bidding war for hulu going on right now.

Will that change the balance of power at all?

It is possible, but i doubt it.

The second largest subscription business out there has been looking for a better not just for the last week, but this has been going on for months or years.

We don't have resolution, not like everybody is running in to bid for this.

It highlights the importance of the space.

My guess is that hulu lost a ceo and is a deteriorating asset.

Netflix had a rocky patch with quickster and -- are they past htat?

Going -- past that?

You never know.

Those that inflicted that wound can do that again.

They lost a couple of major content deals and now they have momentum that it is unlikely they will lose those deals.

If you have a major studio pull content from netflix, they can still correct and they can still screw this up.

Thank you so much.

Of course, one of netflix's as competitors is hulu.

We have new details right now.

Directv submitted a bid prior to the july 5 deadline and time warner cable is seeking to become an investor.

Jon joins us from l.a. where he is based.

What do you make of the latest?

He sounds pretty skeptical, but we have done a lot of reporting on this story.

There is a deadline on friday of last week for the final bid.

Given to the sellers that include disneyland an d newscorp.

Time warner cable has an offer of a table to be a stakeholder, almost like having an equal stake to say what disney has or comcast has.

Bloomberg also reported at&t and the chernin gruop had b -- group had bids on the table.

This is an active process.

Guggenheim through its digital media are also has an interesting and put a bid in.

This is a process that has been taking a lot of time.

They have to get their eggs in a row.

Now that there are offers on the table, what happens next?

Now is the time for the owners to basically decide who is the key player they want to negotiate with.

Once that is decided, they have to talk about the licensing deals.

A shorter licensed d.o., the beta version of -- deal, the paid version of hulu.

Five years for ad-supported, two years for paid.

New girl, netflix signed t o get that show very quickly.

That frustrates hulu buyers.

It creates confusion when it comes to price.

Our senior west coast correspondent from l.a. thank you.

A lonely at long weekend for disney.

Lone ranger took less than $50 million at the box office.

From the team that brought you pirates of the caribbean -- ? ? a clip from disney's the lone ranger, a lonely weekend.

It generated roughly $29 million over the weekend.

Opening last weekend at $48.9 million, and given the $229 million budget, we will set with jon erlichman, back from l.a. does disney have another john carter on its hands?

A lot of people have been comparing this film to john carter in terms of financial performance.

It generated a lot of revenue at the box office, but it was the budget that really made it a difficult one to be successful.

In the case of the lone ranger, you are talking about a big budget film in the neighborhood of $225 million.

Start at the marketing costs and it is very costly for disney.

When you look at a weekend that generated over the five days of what the holiday weekend will generate, it is not a bad return.

For a company that has been pushing a certain strategy for the proven franchises that pixar puts out, marvel has, spending $4 billion to buy star wars, you get the sense that a story like this that doesn't fit into any parts of the disney story, maybe that will be more marvel films and pixar films.

Universal had a big winner with despicable me 3. it did.

Here is an argument of universal stealing a page from the disney playbook.

They took a film that was done in a relatively low-cost, had a huge success around the world with more than $500 million with the new film.

It has already generated roughly double what it costs to make.

Yet they have had a great merchandising opportunity that will continue to show these spinoffs as well.

They will continue to milk this, and people familiar with it, they will compare to a lone ranger.

Up next, stick around for the bwest byte, one number that reveals a whole lot.

? ? time for the bwest byte.

Jon in l.a., cory at sfosan francisco international airport.

137 knots is the speed at which this fight should have been going when it hit the runway.

It did a speed of 106 knots.

That is 121 miles an hour, 29% less than it should have been doing that led to the problems and the tragedy.

35 miles an hour to slow, essentially.

So far, none of the experts want to blame pilot error.

The last person we spoke with said it is not looking good.

They still don't understand why it would have intervened if the plane was not going that slow.

I learned a lot from your interview with captain sullenberger.

San francisco does have a particular challenges.

Cory johnson and jon erlichman, we will see you back here tomorrow morning.

? .

This text has been automatically generated. It may not be 100% accurate.


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