Air Canada to improve fleet with Boeing deal

Fresh out of bankruptcy, Air Canada will spend at least $6 billion to burnish its image and operations by purchasing new Boeing aircraft that are more modern and fuel efficient than its current planes.

The agreement includes firm orders for 18 777s and 14 787s — Boeing’s newest jet, the Dreamliner. Air Canada, which emerged from bankruptcy protection in October, has options and purchase rights for 46 more 787s and 18 more 777s.

Robert Milton, chairman and CEO of ACE Aviation Holdings, the Montreal-based parent company of Air Canada, said the new fleet would save the company hundreds of millions of dollars by lowering its fuel costs and eliminating the need to upgrade its current wide-bodies, which are more than 20 years old on average.

Auto industry

General Motors recalls 2 million vehicles

General Motors Corp. said Monday it was recalling more than 2 million vehicles, including nearly 1.5 million sport utility vans and pickup trucks that have seat belt design problems.

The world’s largest automaker said there were only a few minor injuries associated with the six separate recalls and said owners would be formally notified of the problems by mail in the coming weeks.

Among the vehicles affected, the company was recalling 1.48 million SUVs and pickups from the 2003-2005 model years, including the Chevrolet Silverado Crew Cab, Suburban, Tahoe, Avalanche; Cadillac Escalade, Escalade ESV, Escalade EXT; GMC Sierra Crew Cab, Yukon XL, Yukon; and the Hummer H2s.

Cable provider

Adelphia to settle probe with $715M

Bankrupt Adelphia Communications Corp. has agreed to pay the government $715 million to settle a federal fraud investigation, Atty. Gen. Alberto Gonzales said Monday.

Adelphia will deposit the money in a fund the government will use to compensate investors hurt by the fraud — making the settlement one of the largest of its kind, Gonzales said. As part of the settlement, members of the Rigas family, the company’s founders, have agreed to forfeit more than 95 percent of their assets.

The company did not immediately return calls seeking comment.

Adelphia filed for bankruptcy after founder John W. Rigas and others were accused of using the company as their “private piggy bank” and cheating investors out of billions of dollars. They were convicted of conspiracy, bank fraud and securities fraud last year.