Aveos MRO closes doors, Air Canada official reiterates compliance with Air Canada Public Participation Act

MONTREAL, 30 March 2012. Aveos Fleet Performance Inc.--a maintenance, repair, and overhaul (MRO) provider of airframe, component, engine, and maintenance solutions with facilities in Montreal, Toronto, Winnipeg, and Vancouver—has filed for bankruptcy protection and closed. Company officials cite finances and relations with client Air Canada as reasons for the closure.

Calin Rovinescu, Air Canada president and chief executive officer, remarked to the House of Commons' Standing Committee on Transport, Infrastructure, and Communities:

"Let me state clearly and unequivocally that we continue to be in full compliance with the letter and the spirit of the Air Canada Public Participation Act--despite the demise of Aveos.

“In May 2011, less than one year ago, Justice Newbould of the Ontario Superior Court of Justice ruled on the issue of whether we were in compliance with the maintenance facility requirements of the Act following an application filed by the International Association of Machinists and Aerospace Workers. The court found that Air Canada did meet the Act's requirements on the basis of our own overhaul and maintenance functions.

"Air Canada, irrespective of Aveos, continues to employ 2,400 maintenance employees at various bases in Canada, including those in Winnipeg, Toronto and Montreal. This is 35 percent higher than in 2007."

Rovinescu also reiterated Air Canada's expectation for a viable, long-term solution: "Air Canada is encouraging MRO companies from across Canada and around the world to conduct due diligence and assess whether any of the former Aveos operations may be viable in Canada under new ownership. We have further publicly indicated that we have a strong preference for working with a global MRO or manufacturer which has an interest and ability to provide component, repair, and overhaul services in Canada, with particular emphasis given to Montreal, Winnipeg, Vancouver, and Toronto."



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