November 4, 2015 / 1:45 AM / 3 years ago

Air Canada must keep heavy maintenance center in Montreal -court

MONTREAL, Nov 3 (Reuters) - Quebec’s Court of Appeal ruled against Air Canada Inc 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. (Reporting by Allison Lampert; Editing by Leslie Adler)

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