Air Canada to Appeal Quebec Superior Ruling

Air Canada has decided to appeal a Quebec court ruling, which held that Air Canada has to keep its heavy maintenance operations in Montreal open.

The lawsuit was initially brought by the former Quebec Liberal government, which argued that a 1988 federal law required the airline to maintain aircraft overhaul functions in Canada. Air Canada argued that it respected the law by conducting aircraft maintenance at its 3 Canadian facilities. In the alternative, Air Canada also argued that the provincial governments have no jurisdiction over aviation, as it is a federal matter.

Air Canada subcontractor Aveos Fleet Performance Inc. went out of business last March, which subsequently put 2,600 people out of work in Manitoba, Ontario, and Quebec. Aveos Fleet is paid by Air Canada to do repair work, but it has faced problems as the volume of repair work has declined over the years. After Aveos Fleet closed down, Air Canada gave American company AAR a 5-year renewable contract to maintain its airplanes.

Justice Martin Castonguay said Parliament couldn’t have envisioned in 1988 that Air Canada would remove highly specialized jobs in Canada, only to create the same jobs abroad. He wrote, “Air Canada doesn’t respect the law put in place when it privatized in 1988.”

For the full article from CBC:http://www.cbc.ca/news/business/story/2013/02/04/business-air-canada-aveos.html

About ZS

First year law student at the Univeristy of Victoria. Graduated from UBC with a major in International Relations and a minor in English Literature in 2012. The views expressed in the blog are not necessarily those of AdviceScene, nor the writer, nor do they consistute legal advice.

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