MONTREAL, Nov 3 (Reuters) - Quebec's Court of Appeal ruled
against Air Canada Inc AC.TO on Tuesday, upholding a lower
court's 2013 decision that the carrier must keep heavy
maintenance operations in Montreal.
Canada's largest carrier appealed the case first brought by
the province of Quebec to court in 2012. The predominantly
French-language 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.
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.
Tuesday's court decision said Air Canada was contravening
the act by not maintaining an aircraft overhaul operations in
Montreal.
In an email Tuesday evening, Air Canada spokeswoman Isabelle
Arthur said the carrier was "aware the decision was rendered"
but would not comment before reviewing it.