Air Canada gains ‘breathing room’ with financing
Air Canada (TSX:AC.B) has raised $1.02 billion through a series of financings to gain “breathing room” as the troubled carrier works toward sustainable profitability. The Montreal-based airline, which has been seeking cash to continue its business and avoid having to seek bankruptcy protection, called the financing “a tremendous achievement,” especially considering current credit markets and the state of the airline industry.
Air Canada president Calin Rovinescu said the financing plus recent agreements with unions and the government on the airline’s pension plans gives it enough cash to see it through a tough period for the industry.
“With ongoing global economic weakness and significantly lower airline revenues, we still have much work to do to adapt to the profound impact of this recession,” Rovinescu said.
Microsoft, Yahoo reach search deal
Microsoft Corp. has finally roped Yahoo Inc. into an Internet search partnership, setting the stage for the rivals to make an all-out assault against the dominance of Google Inc. The 10-year deal gives Microsoft access to the Internet’s second-largest search engine audience, adding a potentially potent weapon to the software maker’s Internet arsenal as it tries to better confront Google, the leader in online search and advertising.
NEW YORK — In a July 24 story about doughnut wars in New York, The Associated Press reported erroneously the 2008 sales figures and number of Dunkin’ Donuts stores and also erroneously reported the sales at Tim Hortons stores. Dunkin’ Donuts has nearly 9,000 franchised stores that made US$5.5 billion in sales in 2008, not 15,000 stores that made $6.9 billion. Sales at Tim Hortons’ nearly 3,500 franchised stores were about $4 billion in 2008, not $1.9 billion.