Air Canada moves Supreme Court to annul ruling that forces maintenance work within Canada

Retaining maintenance work within Canada has become a legal issue between Air Canada and a few state governments. The airline has moved the Canada Supreme Court appealing to intervene and overturn a court ruling that required Air Canada to keep all its maintenance operations within the country.

The Montreal-based airline is seeking relief from a Quebec Court of Appeal’s decision of November 2015, which upheld a lower court’s decision of 2013, backing a lawsuit of the Quebec government, reports The Globe and Mail.

Legal obligations breached

In its lawsuit against Air Canada, the Quebec government argued that Air Canada is in breach of its legal obligations under the federal Air Canada Public Participation Act, under which the airline was privatised in 1988, with a clause that all its heavy maintenance operations will be done in Quebec, Ontario and Manitoba.

However, Air Canada maintains that though it respects the law and still conducts aircraft maintenance at its three Canadian facilities in Montreal, Winnipeg and Mississauga, the heavy maintenance will have to be done outside Canada.

Air Canada also questions the jurisdiction of Quebec and Manitoba state governments as aviation is a federal subject. Quebec moved the law suit following the closure of Aveos Fleet Performance unit in 2012 with 2,600 employees laid off, in which 1,700 were in Montreal.

The union of Aveos workers said the apex court may grant the airline’s request as it involves an important federal law.

“But it’s still disappointing to see Air Canada fight this battle against the former Aveos workers and against the federal law,” said David Chartrand, Quebec co-ordinator of the International Association of Machinists and Aerospace Workers. By prolonging the legal battle, Air Canada carrier is doing everything to distance itself from its responsibilities, he added.

Carribean growth

Meanwhile, Air Canada posted strong growth in the Latin America and Caribbean regions, said a recent report.

“I am pleased to report our highest ever load factor for the full year 2015,” said Calin Rovinescu, President and Chief Executive Officer.

In the report, the carrier reported 571 million revenue passenger miles (RPM) to the region in December, up by 9.6 percent over the same period in 2014. Overall, the carrier posted a 10.4 percent jump in RPM in the fourth quarter, with 1.322 billion revenue passenger miles clocked in Latin America and the Caribbean, reported Caribjournal. The carrier reported 5.714 RPM to the region in 2015, with an 11 percent increase.