AirCan committed to cost cuts
TORONTO -- Air Canada is pushing ahead with plans to cut costs by 15 per cent, even as it increases capacity and its low-cost carrier Rouge takes off this summer, airline executives said Monday.
"We've been very clear that we will be unrelenting on costs and creatively respond to competition in any way we can," Air Canada president and chief executive Calin Rovinescu told an investors meeting. "Cost transformation is continuous."
The company said Monday it had been doing better than expected on cost-containment during the second quarter, which ends June 30.
Air Canada's adjusted cost per available seat-mile will decrease by between 0.5 per cent and 1.5 per cent compared with the second quarter of 2012, a full percentage point better than the previous estimate.
It said the anticipated increase to domestic capacity this year will be possible due to schedule changes, but looking forward to 2014, the company said the airline's new 787 Dreamliners and reconfigured seating will boost traffic.
Telus abandons Mobilicity bid
TORONTO -- Telus Corp. has called off its plan to buy small wireless provider Mobilicity after Ottawa signalled last week it would not allow the deal.
Mobilicity, which has about 250,000 customers, said Monday it will instead go ahead with a recapitalization plan, which will be voted on by debtholders June 25.
"The company will continue to provide updates as warranted," Mobilicity said in a brief statement announcing the deal's demise.
Telus, which refused further comment on the decision, had offered to pay $380 million for Mobilicity. However, the deal required the federal government to make an exception to certain rules and allow the larger company to transfer ownership of wireless spectrum owned by Mobilicity.
But federal Industry Minister Christian Paradis quashed that idea last week, saying current rules that prevent the sale of Mobilicity's spectrum licence to one of the larger companies before 2014 would stand.
Institutions tarnished: analyst
MONTREAL -- High unemployment and growing income inequalities have undermined public confidence in global institutions, the head of one of the world's leading economic think-tanks said Monday.
"Today we have lost the trust in government, we have lost the trust in political parties... in everything that we built as a society for 100 years and now there's an enormous degree of cynicism," Angel Gurria told an economic conference in Montreal.
Gurria, secretary-general of the Organization for Economic Co-operation and Development, said voters are turning to strange options, sometimes just because they offer something different.
Lululemon CEO to step down
VANCOUVER -- Lululemon Athletica Inc. says it will begin looking for a new leader at the yoga clothing maker as chief executive Christine Day announced she is leaving the company.
Day, who offered little explanation for her departure, said she will remain with the company while the board searches for a new CEO.
"Plans have been laid for the next five years and a vision set for the next 10," she said in a statement. "Now is the right time to bring in a CEO who will drive the next phase of Lululemon's development and growth."
-- from the news services