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UPDATE 1-Air Canada to appeal maintenance work ruling to Supreme Court

Published 2016-01-05, 10:59 a/m
© Reuters.  UPDATE 1-Air Canada to appeal maintenance work ruling to Supreme Court
AC
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(Adds comment from machinists' union; context on where airline
now performs its heavy maintenance)
By Allison Lampert
MONTREAL, Jan 5 (Reuters) - Air Canada AC.TO said on
Tuesday it is seeking to appeal to the country's highest court a
decision last year ordering the airline to keep heavy
maintenance operations in Montreal.
In November, the Quebec Court of Appeal ruled against the
country's largest carrier, upholding a lower court's 2013
decision that Air Canada must keep the operations in Montreal.

"We are seeking to appeal to the Supreme Court of Canada the
Quebec Court of Appeal's decision in order to provide clarity on
important issues it raises," Air Canada spokeswoman Isabelle
Arthur wrote in an email. "As this is before the court, we have
nothing to add to our filing."
The government of the predominantly French-speaking province
argued that Air Canada breached its legal obligations to keep
heavy maintenance operations in the country after the carrier
closed a facility in Montreal in 2012.
The facility was operated by the former Aveos Fleet
Performance, once an important Air Canada contractor. In 2012
Aveos obtained creditor protection and laid off its 2,600
Canadian employees, including about 1,700 workers in Montreal.
The Air Canada Public Participation Act, the law that has
governed Air Canada's operations since its 1988 privatization,
says the airline must maintain overhaul centers in Quebec,
Manitoba and Ontario.
The appeals court said Air Canada was contravening the act
by not maintaining an aircraft overhaul operations in Montreal.
Air Canada declined to comment further on Tuesday.
The airline has previously said it is compliant with the act
and does maintenance in Montreal, Winnipeg, Toronto, Vancouver
and other cities. In 2013, Air Canada signed a five-year
agreement with a heavy maintenance facility in Trois-Rivieres,
Quebec for the carrier's fleet of Embraer E-190 and E175
aircraft.
Air Canada also sends work to heavy maintenance centers in
the United States, including facilities run by AAR Corp AIR.N
in Minnesota.
On Monday night, the union representing the former Aveos
workers said in a release that Air Canada sought leave to appeal
to the Supreme Court on Dec. 30.
David Chartrand, Quebec coordinator for the International
Association of Machinists and Aerospace Workers, said in the
release that he is disappointed by the prospect of further legal
action.
"In stretching the legal battle to the maximum, Air Canada
tries to give itself opportunity to plead their own turpitude
and make the return of these jobs as complex and difficult as
possible."

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