United Is Struggling Two Years After Its Merger With Continental

Nam Y. Huh/Associated Press

A United 787 Dreamliner at O’Hare International Airport in Chicago. United lost $103 million through the third quarter of 2012.

CHICAGO — It was supposed to be a moment for celebration: United Airlines observing the delivery of its second Boeing 787 Dreamliner with a flight from Seattle to Chicago earlier this month for a select group of employees, while senior officers, including Jeffery A. Smisek, United’s hard-charging chief executive, served Champagne and took lunch orders.

Jad Mouawad/The New York Times

Jeff Smisek, the chief of United Airlines, served champagne on a flight to celebrate delivery of a Boeing 787 on Nov. 15.

But before the flight took off that morning, a computer glitch in one of the airline’s computer systems delayed 250 flights around the world for two hours.

So it goes at United these days. The world’s biggest airline, created after United merged with Continental Airlines in 2010, promised an unparalleled global network, with eight major hubs and 5,500 daily flights serving nearly 400 destinations. As an added benefit, the new airline would be led by Mr. Smisek of Continental, which was known for its attention to customer service.

But two years on, United still grapples with a myriad problems in integrating the two airlines. The result has been hobbled operations, angry passengers and soured relations with employees.

The list of United’s troubles this year has been long. Its reservation system failed twice, shutting its Web site, disabling airport kiosks and stranding passengers as flights were delayed or canceled. The day of the 787 flight, another system, which records the aircraft’s weight once passengers and bags are loaded, shut down because of a programming error.

United has the worst operational record among the nation’s top 15 airlines. Its on-time arrival rate in the 12 months through September was just 77.5 percent — six percentage points below the industry average and 10 percentage points lower than Delta Air Lines. It had the highest rate of regularly delayed flights this summer, and generated more customer complaints than all other airlines combined in July, according to the Transportation Department.

The airline even angered the mayor of Houston, Continental’s longtime home and still the carrier’s biggest hub, when it unsuccessfully sought to block Southwest Airlines’ bid to bring international flights to the city’s smaller airport, Hobby. 

The United-Continental merger is weighing on the company’s finances. It took a $60 million charge in the third quarter for merger-related expenses, including repainting planes. It also took a $454 million charge to cover a future cash payment to pilots under a tentative deal reached in August.

While most large airlines reported profits this year, United has lost $103 million in the first three quarters of 2012, with revenue up just 1 percent to $28.5 billion. Its shares are up 7 percent this year compared with a 12 percent gain for the Standard & Poor’s 500-stock index and a 24 percent gain for Delta.

“United remains at a challenging point,” analysts from Barclays wrote last month, and they forecast that the carrier would not begin to see the benefits of its merger until late in 2013 and into 2014. Still, while airlines initially struggle, mergers increase revenue eventually, as the example of Delta’s acquisition of Northwest Airlines demonstrated two years ago.

Mr. Smisek, taking a break from serving coffee halfway through the maiden 787 flight, acknowledged that things were not going as fast as expected, particularly given the aggressive targets he set two years ago. Back then, Mr. Smisek said the merger would be wrapped up in 12 to 18 months. He has since learned to be patient, he said.

“It is still a work in progress,” he said. “The integration of two airlines takes years. It’s very complex. If you look at where we were two years ago, we’ve come a long way.”

Admittedly, the process is complicated. Airline mergers mean combining different technologies, often old computer systems, as well as thousands of procedures used by pilots and flight dispatchers, gate agents, flight attendants and ground crew.

Setbacks are common. Like United, US Airways experienced a breakdown in its booking technology after its combination with America West in 2005. Delta’s on-time performance fell sharply in the year after its purchase of Northwest.

But today, Delta is a leader among big airlines in on-time performance. US Airways had a record third-quarter profit even though it still lacks common work rules for its pilots seven years after its merger.

United has completed many of its merger tasks, particularly as far as passengers are concerned. It has received its single operating certificate from the Federal Aviation Administration, allowing it to run a combined fleet. Despite all the problems this summer, it claims to have finally merged the reservation and technology systems.

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Protesters Gather Again in Cairo Streets to Denounce Morsi

CAIRO — Thousands of people flowed into the streets of Cairo, the Egyptian capital, Tuesday afternoon for a day of protest against President Mohamed Morsi’s attempt to assert broad new powers for the duration of the country’s political transition, dismissing his efforts just the night before to reaffirm his deference to Egyptian law and courts.

By early Tuesday afternoon in Cairo, a dense crowd of hundreds had gathered outside the headquarters of a trade group for lawyers, and thousands more had filed in around a small tent city in Tahrir Square. In an echo of the chants against Hosni Mubarak, Egyptian’s ousted president, almost two years ago, they shouted, “Leave, leave!” and “Bring down the regime!” They also denounced the spiritual leader of the Muslim Brotherhood, the Islamist group allied with Mr. Morsi.

A few blocks away, in a square near the American Embassy and the Interior Ministry headquarters, groups of young men resumed a running battle that began nine days ago, throwing rocks and tear gas canisters at riot police officers. Although those clashes grew out of anger over the deaths of dozens of protesters in similar clashes one year ago, many of the combatants have happily adopted the banner of protest against Mr. Morsi as well.

Egyptian television had captured the growing polarization of the country on Monday in split-screen coverage of two simultaneous funerals, each for a teenage boy killed in clashes set off by disputes over the new president’s powers. Thousands of supporters of Mr. Morsi and his allies in the Muslim Brotherhood marched through the streets of the Nile Delta city of Damanhour to bury a 15-year-old killed outside a Brotherhood office during an attack by protesters. And in Tahrir Square here in Cairo, thousands gathered to bury a 16-year-old killed in clashes with riot police officers and to chant slogans blaming Mr. Morsi for his death. “Morsi killed him,” the boy’s father said in a video statement circulated over the Internet.

“Now blood has been spilled by political factions, so this is not going to go away,” said Rabab el-Mahdi, a professor at the American University in Cairo and a left-leaning activist, adding that these were the first deaths rival factions had blamed on each other and not on the security forces of the Mubarak government since the uprising began last year. Still larger crowds were expected in the evening, as marchers from around the city headed for the square. Many schools and other businesses had closed in anticipation of bedlam, and on Monday, the Brotherhood called off a rival demonstration in support of the president, saying it wanted to avoid violence.

Egypt’s Supreme Judicial Council met again on Tuesday to consider its response to the president, and the leader of Al Azhar, a center of Sunni Muslim learning that is regarded as the pre-eminent moral authority here, met with groups of political leaders in an effort to resolve the battle over the president’s decree and the deadlock in the constitutional assembly, which is trying to draw up a new constitution.

But even as Mr. Morsi met with top judges Monday night in an effort to resolve the crisis, a coalition of opposition leaders held a news conference to declare that preserving the role of the courts was only the first step in a broader campaign against what Abdel Haleem Qandeil, a liberal intellectual, called “the miserable failure of the rule of the Muslim Brothers.” Mr. Morsi “unilaterally broke the contract with the people,” he declared. “We have to be ready to stand up to this group, protest to protest, square to square, and to confront the bullying.”

Mr. Morsi’s effort to remove the last check on his power over the political transition had brought the country’s fractious opposition groups together for the first time in a united front against the Brotherhood. But the show of unity papered over deep divisions between groups and even within them, said Ms. Mahdi of the American University.

“This is not a united front, and I am inside it,” she said. “Every single political group in the country is now divided over this — is this decree revolutionary justice or building a new dictatorship? Should we align ourselves with folool” — the colloquial term for the remnants of the old political elite — “or should we be revolutionary purists? Is it a conflict between the Muslim Brotherhood and the pro-Mubarak judiciary, or is this the beginning of a fascist regime in the making?”

Mayy El Sheikh contributed reporting.

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Phils' Ruiz suspended 25 games after positive test

PHILADELPHIA (AP) — Add catcher to the Philadelphia Phillies' needs this offseason.

All-Star Carlos Ruiz was suspended Tuesday for the first 25 games of next season following a positive test for an amphetamine. The 33-year-old catcher had a career year in 2012, hitting .325 with 16 homers and 68 RBIs in 114 games.

"I am sincerely regretful for my mistake in taking a prohibited stimulant," Ruiz said in a statement issued by the Major League Baseball Players Association. "I apologize to my teammates, the Phillies organization and the Philadelphia fans. I will serve the imposed 25-game suspension to begin the season and I look forward to returning to the field and working toward bringing a championship back to Philadelphia in 2013."

Ruiz will be eligible to participate in spring training, including exhibition games.

"The Phillies fully support Major League Baseball's drug program," the team said. "We are disappointed by the news of this violation of the program. We will support Carlos in an appropriate manner and move forward to achieve our goal to play championship-caliber baseball in 2013."

Erik Kratz will likely begin the 2013 season as Philadelphia's starting catcher while Ruiz serves his suspension. Kratz, a career minor-leaguer, filled in nicely when he finally got a chance after Ruiz went down with a foot injury. Kratz hit .248, but had nine doubles, nine homers and 26 RBIs in only 141 at-bats. Kratz also threw out 45 percent of base-stealers (15 of 33).

Still, losing Ruiz hurts a lineup that struggled mightily last year. Ruiz moved up from his usual No. 8 spot and took over for an injured Ryan Howard as the team's cleanup hitter for a chunk of the season. He batted fifth after Howard returned in July.

The Phillies, who finished 81-81 after winning five straight NL East titles, have several holes to fill. Only Howard, Chase Utley and Jimmy Rollins are certain regulars. Utley, though, didn't play until late May in 2011 and late June in 2012 because of chronic knee injuries.

General manager Ruben Amaro Jr. hopes to add a starting center fielder, another starting outfielder and a third baseman either through free agency or trades. Now he'll also need a backup catcher for Kratz for the first month. Brian Schneider served as the team's primary backup the last three seasons, but only batted .212 in 122 games.

The Phillies have two top prospects catching in the minors. Sebastian Valle hit .253 with 17 homers and 58 RBIs in 80 games at Double-A Reading and Triple-A Lehigh Valley. Tommy Joseph, acquired in the trade that sent Hunter Pence to San Francisco, hit .257 with 11 homers and 48 RBIs for the Giants' and Phillies' Double-A affiliates.

Ruiz became the eighth player suspended this year under the major league testing program, the second for amphetamines following Baltimore shortstop Ryan Adams. The eight suspensions are the most since 2007.

This had to be Ruiz's second positive test for a stimulant. An initial positive for a stimulant does not trigger a suspension, only that the player must undergo follow-up testing.

There have been 102 suspensions this year under the minor league testing program.

___

Follow Rob Maaddi on Twitter: https://twitter.com/RobMaaddi

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Global Update: Investing in Eyeglasses for Poor Would Boost International Economy

BSIP/UIG Via Getty Images

Eliminating the worldwide shortage of eyeglasses could cost up to $28 billion, but would add more than $200 billion to the global economy, according to a study published last month in the Bulletin of the World Health Organization.

The $28 billion would cover the cost of training 65,000 optometrists and equipping clinics where they could prescribe eyeglasses, which can now be mass-produced for as little as $2 a pair. The study was done by scientists from Australia and the Johns Hopkins Bloomberg School of Public Health.

The authors assumed that 703 million people worldwide have uncorrected nearsightedness or farsightedness severe enough to impair their work, and that 80 percent of them could be helped with off-the-rack glasses, which would need to be replaced every five years.

The biggest productivity savings from better vision would not be in very poor regions like Africa but in moderately poor countries where more people have factory jobs or trades like driving or running a sewing machine.

Without the equivalent of reading glasses, “lots of skilled crafts become very difficult after age 40 or 45,” said Kevin Frick, a Johns Hopkins health policy economist and study co-author. “You don’t want to be swinging a hammer if you can’t see the nail.”

If millions of schoolchildren who need glasses got them, the return on investment could be even greater, he said, but that would be in the future and was not calculated in this study.

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Jeffrey Zucker Expected to Be Next President of CNN

In the days to come, when Time Warner appoints a new leader of CNN Worldwide for the first time in a decade, he or she will face an identity crisis unlike any other in corporate America.

Though CNN over all is on track to have its most profitable year ever, its flagship channel in the United States is seemingly rudderless, run by layers of producers and executives — many with competing visions. The channel’s low prime-time ratings are the stuff of punch lines and a journalism school case study in the damage wrought by the digital age.

Then again, the channel also has tremendous potential, an enviably popular Web site and countless people rooting for it to succeed.

Throughout a four-month search process for the person to succeed Jim Walton, the departing president, attention has centered on Jeffrey Zucker, the former chief executive of NBCUniversal, who was replaced when Comcast took over the company last year. Mr. Zucker currently produces Katie Couric’s daytime talk show.

Several news executives close to Mr. Zucker said this week that they believed he had been chosen to run CNN and expected the appointment to be announced soon. People close to the Time Warner chief executive, Jeffrey L. Bewkes, also identified Mr. Zucker. A Time Warner spokesman declined to comment.

In considering candidates to run one of the world’s best-known, but beleaguered, news organizations, Mr. Bewkes and his deputy Phil Kent have also been considering their own legacies. They are cautious about not undermining CNN’s journalistic heart and soul, even as they strive to resuscitate the channel’s prime-time lineup, according to people who have met with them about the search. That means the channel’s programming will remain nonpartisan in nature.

“They want someone who has programming and management and cable expertise; someone who can be credible to the staff and to the business community,” said one of these people. “They know that this is a pretty tall order.”

Mr. Zucker could check off all those boxes. As a young NBC News producer, he helped start what became a 16-year winning streak for the “Today” show. He had mixed results as he moved up the rungs of NBC, but he can point to cable programming successes even as the NBC broadcast network struggled. He did not respond to requests for comment, and people with knowledge of the search insisted on anonymity to preserve friendships and business relationships.

But many others in and around CNN spoke on the record about the challenges ahead. Getting the top-heavy 4,000-person company — spread among New York, Washington, Atlanta and bureaus around the world — to row in the same direction will be one of the toughest tasks, many said.

The company’s many channels and sites net roughly $600 million in annual profits, through advertising revenue and subscriber fees. But the channel is leaving ad dollars on the table, as one executive put it, because its prime-time ratings are lagging, and it’s putting future fee increases at risk by appearing irrelevant in the eyes of some cable subscribers.

One problem dates back to CNN’s creation in 1980: when there is a lack of news, there is a lack of viewers. Kiran Chetry, a CNN morning anchor from 2007 to 2011, said her time there was like being on a news treadmill: “We were running, sweating, doing the work, but never getting anywhere ratings-wise,” she said. This stemmed, she said, from uncertainty about “what we were, who our audience was and how we best served them.”

As Fox News and, later, MSNBC put on confrontational political programs with partisan points of view, CNN sold itself as proudly nonpartisan, but fell from first to second to third place in the cable news wars along the way. This should have been an “up” year for the channel, thanks to the presidential election; but through mid-November the channel had drawn 412,000 viewers at any given time, down 16 percent from the previous 12 months.

Bill Carter contributed reporting.

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Egypt’s President Said to Limit Scope of Judicial Decree

Tara Todras-Whitehill for The New York Times

Egyptians stand near a burned out school, before the funeral of Mohammed Gaber Salah, an activist who died Sunday from injuries sustained during protests.

CAIRO — With public pressure mounting, President Mohamed Morsi appeared to pull back Monday from his attempt to assert an authority beyond the reach of any court, as his allies in the Muslim Brotherhood canceled plans for a large demonstration in his support, signaling a chance to calm an escalating battle that has paralyzed a divided nation.

After Mr. Morsi met for hours with the judges of Egypt’s Supreme Judicial Council, his spokesman read a statement on Egyptian television that appeared to backtrack from what was widely understood to be Mr. Morsi’s attempt to place himself above the law — even while saying he had not actually changed a word of the statement.

Though details of the talks remained hazy, and it was not at all clear whether the opposition or even the court would accept his position, Mr. Morsi’s gesture was another indication that Egypt’s rulers can no longer operate with impunity. Time and again they have been forced to respond to public demands for rule of law. How far that gesture might go toward alleviating the political crisis, however, remained uncertain. Protesters remained camped in Tahrir Square and the opposition called for going ahead with a protest demonstration Tuesday.

The presidential spokesman said for the first time that the president sought only to assert powers already approved by the courts under previous precedents, not to give himself carte blanche from judicial oversight. Instead, his spokesman said the president had intended to protect the country’s constitutional assembly from the threat of being dissolved by courts of judges appointed by former President Hosni Mubarak before it finishes its work.

In his statement, the presidential spokesman, Yasser Ali, emphasized that the president had not amended his original edict issued last Thursday. He said that the president meant all along to follow an established Egyptian legal doctrine allowing presidential acts above judicial scrutiny “to protect the main institutions of the state.”

Legal experts said that the spokesman’s “explanations” of the president’s intentions, if put into effect, would amount to a revision of the decree he had issued last Thursday. That decree sought to remove all presidential decrees from judicial scrutiny until the ratification of a new constitution. But lawyers said that the verbal statements alone carried little legal weight.

How the courts would apply the doctrine remained hard to predict. And the Mr. Morsi’s political opposition indicated it was holding out for far greater concessions — including the breakup of the Islamist-led constituent assembly.

Speaking at a news conference while Mr. Morsi was meeting with the judges, the opposition activist and intellectual Abdel Haleem Qandeil called for “a long-term battle,” declaring that withdraw of his new powers was only the first step toward the opposition’s goal of “the withdrawal of the legitimacy of Morsi’s presence in the presidential palace.” Completely withdrawing the edict would be “a minimum,” he said.

Most in the opposition focused on the spokesman’s declaration that the president had not revised the text of his decree. Khaled Ali, a human rights lawyer and former presidential candidate, pointed to the growing crowd of protesters camped out in Tahrir Square for a fourth night. “Reason here means that the one who did the action has to be take back, and those people you see in Tahrir Square are reacting,” Mr. Ali said.

Moataz Abdel Fattah, a political scientist at Cairo University, said Mr. Morsi appeared to be trying to save face with a strategic retreat. “He is trying to simply say, ‘I am not a new Pharoah, I am just trying to stabilize the institutions that we already have,’ ” he said. “But for the liberals, this is now their moment, and for sure they are not going to waste it, because he has given then an excellent opportunity to score.”

The attempt to qualify Mr. Morsi’s position follows four days of rising tensions and flashes of violence set off by his edict. He argued that he was forced to act because of indications that the Mubarak-appointed judges of Egypt’s top courts were poised to dissolve the constitutional assembly as soon as next week. The courts had already shuttered the democratically elected parliament and an earlier constitutional assembly — both dominated by Islamists — and the courts had also rejected an earlier decree he issued to try to reopen the Parliament.

By enabling the current assembly to complete its work, Mr. Morsi said, he would expedite the transition to a stable democracy with a written constitution and an elected parliament that would limit his own powers. His supporters portrayed his assertion of executive power over the judges a triumph of democracy over Egypt’s unelected institutions.

But his infringement on the courts touched a nerve. Under Mr. Mubarak’s authoritarian rule, the Egyptians had cherished their courts for providing at least the promise of equal justice and some check on official power even as they grew cynical about what they saw as corrupt or politicized judges, and over the past decade a judges’ campaign for judicial independence had helped lay the groundwork for the 2011 revolt.

To his surprise, according to at least one adviser, Mr. Morsi’s decree exempting himself from judicial scrutiny set off a furious reaction. The president’s fractious political opponents galvanized together into a unified coalition against him. Vandals attacked more than a dozen headquarters of his political party. Thousands demonstrated in the streets. Judges called for a national strike, which has begun in some places.

And the justice minister, a former leader of the judicial independence movement, publicly dissented, arguing that Mr. Morsi should limit his attempt to assert immunity from judicial oversight to acts only related to protecting the constituent assembly or other elected bodies — something the clarification offered Monday appeared to do.

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HP hit with civil securities lawsuit over Autonomy deal

SAN FRANCISCO (Reuters) – Hewlett-Packard Co was sued on Monday by an investor who claimed the company knew statements about its Autonomy acquisition were misleading and led the stock to fall, according to lawyers representing the plaintiff.

The proposed class action lawsuit was filed in a San Francisco federal court.

HP dropped a bombshell last Tuesday with an $ 8.8 billion write-down on its acquisition of British software firm Autonomy, saying the company inflated sales with improper accounting. Autonomy co-founder Mike Lynch has denied any wrongdoing.

HP bought Autonomy for a hefty $ 11.1 billion last year. HP has said it alerted regulators on both sides of the Atlantic.

The lawsuit, one of the first to be filed by investors on the Autonomy mess, said HP hid the fact it gained control of Autonomy based on financial statements that could not be relied upon. It also said that HP had not revealed to investors that it tried to undo the Autonomy agreement before it closed because of the accounting issues.

(Reporting By Dan Levine and Poornima Gupta; Editing by Gerald E. McCormick and Andre Grenon)

Tech News Headlines – Yahoo! News

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US federal mediators to join NHL labor talks

WASHINGTON (AP) — Federal mediators are entering the stalled NHL labor talks, with the season's first 2½ months already lost because of the lockout.

George Cohen, director of the Federal Mediation and Conciliation Service, said Monday the parties had agreed to use the agency. He assigned three mediators to assist negotiations — deputy director Scot Beckenbaugh, director of mediation services John Sweeney and Commissioner Guy Serota.

"While we have no particular level of expectation going into this process, we welcome a new approach in trying to reach a resolution of the ongoing labor dispute at the earliest possible date," NHL deputy commissioner Bill Daly said.

Cohen has worked with the players' associations for Major League Baseball, helping end the 1994-95 strike as an outside counsel, and the NBA. He was an adviser to the NHL players' union before joining FMCS three years ago.

"We look forward to their involvement as we continue working to reach an equitable agreement for both the players and the owners," said Donald Fehr, executive director of the NHL Players' Association.

Cohen mediated during the 2010 negotiations in Major League Soccer and 2011 talks in the NFL and NBA, along with this year's dispute between the NFL and its on-field officials.

Hockey players and management have not negotiated since last Wednesday. The NHL has canceled more than one-third of its regular season, including all games through Dec. 14, the New Year's Day outdoor Winter Classic and the All-Star weekend scheduled for Jan. 26-27 at Columbus, Ohio.

"I have had separate, informal discussions with the key representatives of the National Hockey League and the National Hockey League Players' Association during the course of their negotiations for a successor collective bargaining agreement," Cohen said in a statement.

"Due to the extreme sensitivity of these negotiations and consistent with the FMCS's longstanding practice, the agency will refrain from any public comment concerning the future schedule and/or the status of the negotiations until further notice."

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Amid Hurricane Sandy, a Race to Get a Liver Transplant

It was the best possible news, at the worst possible time.

The phone call from the hospital brought the message that Dolores and Vin Dreeland had long hoped for, ever since their daughter Natalia, 4, had been put on the waiting list for a liver transplant. The time had come.

They bundled her into the car for the 50-mile trip from their home in Long Valley, N.J., to NewYork-Presbyterian Morgan Stanley Children’s Hospital in Manhattan. But it soon seemed that this chance to save Natalia’s life might be just out of reach.

The date was Sunday, Oct. 28, and Hurricane Sandy, the worst storm to hit the East Coast in decades, was bearing down on New York. Airports and bridges would soon close, but the donated organ was in Nevada, five hours away. The time window in which a plane carrying the liver would be able to land in the region was rapidly closing.

In a hospital room, Natalia watched cartoons. Her parents watched the clock, and the weather. “Our anxiety was through the roof,” Mrs. Dreeland said. “It just made your stomach into knots.”

The Dreelands, who are in their 60s, became Natalia’s foster parents in 2008 when she was 7 months old, and adopted her just before she turned 2. They have another adopted daughter, Dorothy Jane, who is 17.

Natalia is a “smart little cookie” who loves school and dressing up Alice, her favorite doll, her mother said. At age 3, Natalia used the word “discombobulated” correctly, Mr. Dreeland said.

Natalia’s health problems date back several years. Her gallbladder was taken out in 2010, and about half her liver was removed in 2011. The underlying problem was a rare disease, Langerhans cell histiocytosis. It causes a tremendous overgrowth of a type of cell in the immune system and can damage organs. Drugs can sometimes keep it in check, but they did not work for Natalia.

In her case, the disease struck the bile ducts, which led to progressive liver damage. “She would have eventually gone into liver failure,” said Dr. Nadia Ovchinsky, a pediatric liver transplant specialist at NewYork-Presbyterian. “And she demonstrated some signs of early liver failure.”

The only hope was a transplant.

Dr. Tomoaki Kato, Natalia’s surgeon, knew that the liver in Nevada was a perfect match for Natalia in the two criteria that matter most: blood type and size. The deceased donor was 2 years old, and though Natalia is nearly 5, she is small for her age. Scar tissue from her previous operations would have made it very difficult to fit a larger organ into her abdomen.

Though Dr. Kato had considered transplanting part of an adult liver into Natalia, a complete organ from a child would be far better for her. But healthy organs from small children do not often become available, Dr. Kato said. This was a rare opportunity, and he was determined to seize it.

But as the day wore on, the odds for Natalia grew slimmer. The operation in Nevada to remove the liver was delayed several times.

At many hospitals, surgery to remove donor organs is done at the end of the day, after all regularly scheduled operations. The Nevada hospital had a busy surgical schedule that day, made worse by a trauma case that took priority.

At the hospital in New York, Tod Brown, an organ procurement coordinator, had alerted a charter air carrier that a flight from Nevada might be needed. That company in turn contacted West Coast carriers to pick up the donated liver and fly it to New York.

Initially, two carriers agreed, but then backed out. Several other charter companies also declined.

Mr. Brown told Dr. Kato that they might have to decline the organ. Dr. Kato, soft-spoken but relentless, said, “Find somebody who can fly.”

Dr. Kato used to work in Miami, where pilots found ways to bypass hurricanes to deliver organs. Even during Hurricane Katrina, his hospital performed transplants.

“I asked the transplant coordinators to just keep pushing,” he said.

Mr. Brown said, “Dr. Kato knew he was going to get that organ, one way or another.”

As the trajectory of the storm became clearer, one of the West Coast charter companies agreed to attempt the flight. The plan was to land at the airport in Teterboro, N.J. The backup was Newark airport, and the second backup was Albany, from where an ambulance would finish the trip.

The timing was critical: organs deteriorate outside the body, and ideally a liver should be transplanted within 12 hours of being removed.

Early Monday, as the storm whirled offshore, the plane landed at Teterboro. Soon a nurse rushed to tell the Dreelands that she had just seen an ambulance with lights and sirens screech up to the hospital. Someone had jumped out carrying a container.

At about 5 a.m., the couple kissed Natalia and saw her wheeled off to the operating room.

Three weeks later, she is back home, on the mend. The complicated regimen of drugs that transplant patients need is tough on a child, but she is getting through it, her father said.

Recently, Mr. Dreeland said, he found himself weeping uncontrollably during a church service for the family of the child who had died. “Their child gave my child life,” he said.

Though only time will tell, because the histiocytosis appeared limited to Natalia’s bile ducts and had not affected other organs, her doctors say there is a good chance that the transplant has cured her.

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DealBook: Lehman Estate to Sell Archstone for $6.5 Billion

The deal that helped sink Lehman Brothers is now playing an important role in paying off the failed investment bank’s creditors.

The Lehman estate agreed on Monday to sell Archstone, the sprawling apartment complex company, to Equity Residential and AvalonBay Communities for about $6.5 billion in cash and stock.

Under the terms of the deal, the Lehman estate will receive $2.685 billion in cash, as well as shares in Equity Residential and AvalonBay worth about $3.8 billion. The two apartment companies will also assume Archstone’s roughly $9.5 billion in debt.

By selling Archstone, the Lehman estate will dispose of its biggest asset, as it continues its efforts to wind itself down and pay off the firm’s legions of creditors. And it will signal the latest twist for a property that has played an important role in Lehman’s demise.

Lehman bought Archstone in 2007, paying more than $22 billion at the height of the housing boom. That leveraged buyout piled even more debt onto an already overburdened firm, significantly contributing to its demise in the fall of 2008.

Since then, however, Archstone has become regarded as one of the crown jewels in the Lehman estate’s pile of assets. And as the estate has sold off a number of its other properties, including the asset manager Neuberger Berman and other real estate holdings, the apartment company was held out as the best opportunity for a major payday.

Such was the Lehman estate’s zealousness that it bought out its partners in Archstone, Bank of America and Barclays, earlier this year, spending a total of $2.88 billion. The goal then was to prevent the firms from selling their holdings to Equity Residential too cheaply.

The stock component of the transaction announced on Monday will give make the Lehman estate the single biggest investor in Equity Residential, with a 9.8 percent stake, and in AvalonBay, with a 13.2 percent stake.

The purchase price represents a roughly 17 percent premium to what the Lehman estate had valued the apartment complex operator.

“The sale of Archstone to Equity Residential and AvalonBay is a very positive outcome for our creditors,” Owen Thomas, the chairman of Lehman’s board of directors, said in a statement.

Equity Residential, which is run by the billionaire Samuel Zell, will own about 60 percent of Archstone’s assets and liabilities. AvalonBay will own the remainder.

Lehman was advised by Gleacher & Company, Citigroup, JPMorgan Chase and the law firm Weil, Gotshal & Manges.

Equity Residential received advice from Morgan Stanley and the law firms Hogan Lovells and Morrison & Foerster. AvalonBay was advised by Greenhill & Company and the law firm Goodwin Procter.

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