January 5, 2016 / 1:20 PM / 2 years ago

Air Canada seeks to appeal Aveos case to Supreme Court

MONTREAL, Jan 5 (Reuters) - Air Canada said on Tuesday it is seeking to appeal to the country’s highest court a November decision ordering the airline to keep heavy maintenance operations in Montreal.

In November, Quebec’s 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-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 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. (Reporting by Allison Lampert; Editing by Jeffrey Benkoe)

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