AVEOS- (former)AC maintenance shuts down!

Discussion in 'Air Canada | Aeroplan' started by QSG, Mar 18, 2012.  |  Print Topic

  1. QSG
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    Aveos Fleet Performance Inc., a private company that maintains many of Air Canada's aircraft, shut down its plants on Sunday, locking out at least 2,400 workers and telling them not to return to work.
    Approximately 1,800 of the affected employees are based in Montreal, while 350 are in Winnipeg and 250 are in Vancouver, according to the International Association of Machinists and Aerospace Workers.
    "The maintenance component that supplies work to the Air Canada fleet has effectively ceased operations," Lorne Hammerberg, the IAMAW's local president in Winnipeg, told CBC News.
    "The base manager and his senior managers came down today to the hangars, told the guys they were no longer in operation and to remove themselves from the premises."
    Aveos posted a sign at its Winnipeg plant late Sunday afternoon, stating, "We regret to advise you that effective immediately, Aveos Fleet Performance Inc. has ceased the operation of airframe maintenance."
    Union officials in Vancouver confirmed that employees at the Aveos plant there had been told to go home and leave all their equipment and personal items behind.
    Aveos officials did not return calls by CBC News for comment on Sunday.
     
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  2. TRAVELSIG
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    Wow. What does this mean exactly? Where is AC servicing their aircraft?
     
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  3. tomh009
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    I believe Aveos does maintenance and repairs, not routine service.

    http://www.ctv.ca/generic/generated/static/business/article2373269.html
     
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  4. milchap
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    A friend of mine retired from the Winnipeg base of Aveos a few months ago. He chose to remain an AC employee because he did not trust the future. He was so right.
     
  5. milchap
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    2007: Air Canada Technical Services, the airline's in-house maintenance company, is spun off into a separate, private firm called Aveos Fleet Performance.


    Jan. 2010: A group of lenders takes majority control of Aveos, recapitalizing the company so it avoids bankruptcy.

    March 2010: Aveos announces 350 layoffs -- some permanent, some temporary -- in Winnipeg. The cuts are blamed on reduced demand for heavy maintenance of Air Canada's A319 and A320 planes.


    May 2011: In a blow to the union, an Ontario court rules that Air Canada's sale of Aveos Fleet Performance Inc. did not contravene a law that stipulates that the airline operate maintenance, repair and overhaul centres in Winnipeg, Montreal and Mississauga, Ont.


    March 2012: Compared to a year ago, there have been 140 fewer people working at Aveos in Winnipeg, and some workers were forced to take a week-long layoff because Air Canada has postponed optional maintenance on some jets.

    March 18, 2012: Sunday afternoon, workers are told the shop is shutting down for good. More than 300 people are out of work.
    Republished from the Winnipeg Free Press print edition March 19, 2012 A3
     
  6. Once again global competitive elements of the airline industry have caught an expensive underperforming unionized workforce with their pants down. The machinists union fought hard for "better working conditions" and higher wages while Aveos competitors were setting up shop in lower wage countries in places like Panama in Central America.
     
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  7. milchap
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    According to an article in the Winnipeg Free Press this am, three wide-body and several narrow-body aircraft are in AVEOS facilities and
    in various stages of maintenance including missing landing gear.
    An AC lawyer says that 3000 pax a day will be affected if these aircraft are not returned to service.
     
  8. Rejuvenated
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    MONTREAL, March 20, 2012 /CNW Telbec/ - Air Canada today expressed disappointment at Aveos Fleet Performance Inc.'s (Aveos) decision to reject its offer of $15 million in emergency financing and instead permanently cease operations. If accepted, the $15 million Debtor-in-Possession (DIP) financing could have assisted in stabilizing Aveos for the benefit of its employees and stakeholders and supported an orderly restructuring. This stabilization would have permitted Aveos to reopen certain of its facilities and recall certain of its employees, which would have in turn allowed Air Canada to provide additional maintenance work to Aveos.
    To ensure Air Canada's customers are not inconvenienced and are able to continue traveling and booking Air Canadawith confidence, the airline will be activating its contingency plan. This will ensure that maintenance work continues in full compliance with all regulatory requirements and is consistent with the high standards of Air Canada's maintenance programs.
    Air Canada believes that Aveos has failed to act in the interests of its employees, customers and other stakeholders by abruptly abandoning its business while other viable options to closure were available. Management at Aveos has failed repeatedly to attract new business to expand and diversify its revenue stream. By its own admission in court filings, the company is not cost competitive and has suffered operating losses for several years.
    Aveos claims that Air Canada has withheld or directed elsewhere maintenance work it should have properly received. Since the beginning of 2011, Air Canada has undertaken 135 airframe checks and Aveos performed 123, or 91 per cent of them. As well, Aveos performed 52 of 56, or 93 per cent, of engine checks performed for Air Canada. Work was sent to third parties only when Aveos was unable to perform it and only in accordance with the terms of the commercial agreements between the parties and the applicable collective agreements.
    Contrary to Aveos's court filings and public statements, Air Canada has been very supportive of Aveos and has provided financial and other assistance to the company. Among other things, Air Canada:
    • Participated in the 2010 out-of-court restructuring through a $22 million term note, that among other things allowed Aveos to defer payments without interest penalty when its cash reserve fell below a prescribed level.
    • Committed up to $50 million to reimburse Aveos for airframe operating losses as part of the 2010 restructuring.
    • Paid or advanced approximately $9 million on March 15, 2012 in respect of various invoices including invoices in dispute.
    • Offered Aveos on several occasions financing support to permit an orderly restructuring and allow it to remain in business, including most recently the $15 million DIP financing.
    Net amounts owing by Aveos to Air Canada to date are in excess of $35 million.
     
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  9. YULtide

    YULtide Gold Member

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    It's a good job AC sold off this losing business. They could have been stuck with an in-house maintenance facility to take care of their planes instead of a $35 million receivable that will have to be written off.
     
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  10. Rejuvenated
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    The Quebec government is considering suing Air Canada and the federal government for the loss of nearly 1,800 Montreal jobs after the closing of aircraft repair firm Aveos Fleet Performance Inc.

    Members of the Quebec National Assembly voted unanimously on Wednesday to urge the provincial government “to act as soon as possible in taking all legal actions to keep Air Canada maintenance services in Montreal,” in compliance with the 1988 Air Canada Public Participation Act that set out conditions for privatizing the airline.

    The federal law imposes certain conditions, notably the requirement that the airline perform maintenance work in Montreal, that its headquarters remain in Montreal and that it offer bilingual services.

    Quebec may argue that Ottawa is in non-compliance with the law by refusing to intervene in the Aveos case to force Air Canada to conduct maintenance operations in Montreal.

    “We will examine all potential recourses, and these include the possibility of taking legal action against the federal government. We are not closing the door because our first objective is to help the Aveos workers,” Quebec Premier Jean Charest said.

    Aveos laid off 2,620 employees and began liquidating assets this week, closing maintenance plants in Montreal, Winnipeg and Vancouver.

    Quebec’s Liberal government has contacted other provinces to examine the possibility of taking legal action together.

    “I have spoken to the minister in Manitoba,” said Economic Development Minister Sam Hamad. “We are examining all possible legal actions against Air Canada to exercise pressure on Air Canada as soon as possible.”

    He said Quebec would go it alone if the other provinces decided against taking legal action.
    Federal Transport Minister Denis Lebel expressed sympathy Wednesday for the laid-off workers, but said the “devastating” shutdown came after Aveos’s decisions as a private company. Air Canada has to respect the law and Ottawa is obtaining legal advice confirming its compliance with conditions, he added.

    Aveos initially considered restructuring by seeking bankruptcy protection, but on Tuesday the debt-laden company said it was forced to liquidate assets instead.

    Air Canada said in a statement Wednesday that Aveos is a separate firm, and that the airline is still onside with all aspects of the Air Canada Public Participation Act.

    “We continue to employ 2,300 maintenance employees at various bases in Canada, including those in Vancouver, Winnipeg, Toronto and Montreal,” said Air Canada spokesman Peter Fitzpatrick. “Air Canada intends to remain fully compliant with the act, which also requires we maintain our head office in Montreal.”

    Last May, the Ontario Superior Court ruled that Air Canada is complying with the act’s requirement that the airline have aircraft maintenance centres in Montreal, Winnipeg and Mississauga. Vancouver is not listed as one of the protected aircraft-repair plants in the act.

    The court issued the decision after the International Association of Machinists and Aerospace Workers argued that Air Canada had effectively breached the act through the spinoff of Aveos, formerly Air Canada Technical Services, to private-equity owners. In 2010, a group of lenders took control of Aveos, which specialized in airframe heavy maintenance but also performed engine overhauls.

    Last year’s Superior Court judgment, written by Mr. Justice Frank Newbould, noted that Air Canada has certain overhaul functions through its day-to-day “line maintenance” operations.

    On Wednesday, about 200 Aveos workers from Montreal protested outside the National Assembly while a dozen sat in the public gallery to listen to the debate about their company.

    Opposition Parti Québécois members argued that Air Canada is in violation of the 1988 federal act, and accused the federal government of failing to stand up for the laid-off employees.

    “When Air Canada workers want to exercise their right to strike, Ottawa intervenes. It suddenly becomes a national issue,” PQ Leader Pauline Marois said in the National Assembly. When Aveos abruptly closed its doors, “Ottawa does nothing and doesn’t intervene. It’s a double standard.”

    http://www.theglobeandmail.com/globe-investor/quebec-weighs-air-canada-legal-action/article2376476/
     
  11. tomh009
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    OK, there is a law (which they may not even be breaching, based on the Superior Court decision) ... but what the heck are they expecting AC to do? AC already offered emergency financing, and Aveos turned it down. Are they supposed to buy back Aveos?!?!?
     
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  12. Rejuvenated
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    Montreal Mayor Gerald Tremblay is teaming up with the mayors of Winnipeg and Mississauga, Ont., to pressure Ottawa to intervene in the dispute between the aircraft maintenance company Aveos and Air Canada.

    Their letter to Prime Minister Stephen Harper asks him to call an emergency meeting between the two companies to protect jobs affected by the dispute.

    The mayors argue Air Canada is obliged by law to continue to operate maintenance centres in all three cities under the Air Canada Public Participation Act.

    They say they have spoken to Air Canada's president, and he has agreed to collaborate and discuss the issue.

    Aveos annouced this week it is shutting three main plants in Vancouver, Winnipeg and Montreal, as well as other facilities in Edmonton, Calgary, and Trenton and Mississauga in Ontario.

    Almost all its 2,600 unionized employees across the country were laid off and its assets are being liquidated because of a lack of work from Air Canada. Aveos gets about 90 per cent of its business from the airline.

    Marcel St. Jean, president of Local 1751 of the International Association of Machinists and Aerospace Workers, said Wednesday the overall number may be closer to 3,000 when non-unionized workers are included.

    'Situation unacceptable'

    The mayors said Air Canada has the obligation to maintain the maintenance and repair centres in Montreal, Winnipeg and Mississauga.

    They called the situation unacceptable.

    Air Canada is not a private company like any other, they argue, as it is the country's national air carrier.

    "Its obligations under law come as a compensation for the protection of its privileges as such. This has also, and very recently, enabled your government to intervene in the carrier's labour relations," the letter reads.

    Air Canada was transformed from a Crown corporation into a private company in 1988.
    Aveos says a drop in work has cost it millions of dollars in revenue in recent months.

    The airline offered $15 million in emergency funding Monday afternoon, but Aveos said it wasn't enough to keep the company going.

    Quebec Premier Jean Charest has already threatened to sue the federal government over the Aveos shutdown, while the province's national assembly unanimously passed a motion earlier this week promising to do everything it could to help the company's employees.

    http://www.cbc.ca/news/canada/montreal/story/2012/03/23/mayors-letter-aveos-closure.html
     
  13. milchap
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    This is off topic.....but I am intrigued by the fact that there has been no posts or a new thread about the wildcat walkout in YYZ,YUL and YVR.
    I had to go back to FT for info.
     
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  14. tomh009
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    Yeah, even I will have to admit that. Not that there was a whole lot of info there, either.

    The morning flights were messed up, but things seemed to clear up in the afternoon, and by evening it was quiet. A lot of people apparently took standby on earlier flights just in case, so we only had 20 pax on our EWR-YYZ. And it paid off: a highly unusual ahead-of-schedule arrival (the last flight from EWR is notorious for flight delays).

    [​IMG]

    14 minutes ahead of time instead of the usual one-hour delay! :D
     
  15. it was a tempest in a teapot;nothing worse than weather delays in reality. Of course that would be big news on FT for the chattering classes who reside there.:):rolleyes:
     
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  16. Rejuvenated
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    OTTAWA (Reuters) - Canada's opposition parties stepped up pressure on the Conservative government on Tuesday to force Air Canada to maintain aircraft overhaul facilities that were shut down last week.

    By allowing the facilities to shut down, Air Canada is violating a law that requires it to keep open fleet service stations in three Canadian cities, said opposition members of Parliament and unions representing 2,600 workers who have lost their jobs.

    But Transport Minister Denis Lebel says the situation is "complex" and that on Thursday he will reveal to a parliamentary committee the legal advice he has received on the matter.
    "It's an unbelievable situation," said Thomas Mulcair, the newly elected leader of the main opposition New Democratic Party.

    "This is the law and order government and the law is quite clear. Those jobs had to be kept in those three cities that are specifically named. They can't simply be disappeared or moved elsewhere and the government has to be applying the law," he told reporters.

    The law under which Air Canada was privatized in 1988 contained a provision requiring the airline to maintain maintenance operations in Montreal, Mississauga, Ontario; and Winnipeg, Manitoba.

    The airline later spun off the heavy maintenance work to a private company called Aveos. Saying that Air Canada had not given it sufficient work, Aveos obtained bankruptcy protection last week and closed its operations, causing outrage among its employees.

    Air Canada has since identified other facilities in Canada and the United States that could do the work once performed by Aveos.

    The airline is engaged in a separate labor disputes with two unions and in a highly controversial move, the government has stepped in to prevent any disruption of its flights by sending the disputes to binding arbitration.

    Facing labor protests on the street and attacks in Parliament, Lebel said on Monday he was asking the House of Commons transportation committee to hold hearings into the Aveos situation.

    Lebel's punting of the issue to committee has raised concerns that Ottawa may consider changing the 1988 law, which could put Air Canada in the clear and allow the stations to be moved elsewhere or even abroad.

    Lebel described the conflict on Tuesday as being primarily between two private companies, saying the government had no intention of bailing out either Aveos or Air Canada.

    Earlier on Thursday, lawmakers from the three opposition parties and leaders of the International Association of Machinists and Aerospace Workers, representing Aveos workers, held a joint press conference accusing Prime Minister Stephen Harper of failing to enforce the law and favoring Air Canada over the displaced workers.

    http://ca.reuters.com/article/topNews/idCABRE82L16520120327
     
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  17. milchap
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  19. Jarome Iginla

    Jarome Iginla New Member

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    Aveos has been known as a good AC Servicing company. An AC Company's reputation completely depends on the amount of hard work put in by its employees. An air conditioning unit needs to be maintained and serviced regularly so that it performs efficiently. AC Repair Miami provides well qualified AC specialists to get the job done
     
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  20. tomh009
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    Welcome to MP, Jarome! You have your first "like" ...
     
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  21. QSG
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    Spam really takes many different forms these days.......I like how AC became air conditioning ! ;)
     
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