Air Canada asks top court to reject maintenance ruling in lawsuit fight

MONTREAL -- Air Canada has asked the Supreme Court to intervene to overturn a court ruling that requires the carrier to keep maintenance operations in the country.

See Full Article

The Montreal-based airline said Tuesday it is seeking leave to appeal a Quebec Court of Appeal decision in November. That ruling upheld a lower court's 2013 decision that backed a lawsuit filed by the Quebec government.

The province argued that Air Canada (TSX:AC) breached its legal obligations under the federal Air Canada Public Participation Act that privatized the airline in 1988 to keep heavy maintenance operations in Quebec, Ontario and Manitoba.

Air Canada has argued that it respected the law by continuing to conduct aircraft maintenance at its three Canadian facilities in Montreal, Winnipeg and Mississauga, Ont., even though heavy maintenance was transferred outside the country.

It also told the court that the Quebec and Manitoba governments -- Manitoba intervened to support Quebec's lawsuit -- have no jurisdiction because aviation is a federal matter.

Quebec launched its lawsuit after Aveos Fleet Performance, which obtained creditor protection, closed in 2012 in a move that laid off 2,600 employees, including about 1,700 in Montreal.

The union that represented Aveos workers said the country's highest court may grant the airline's request because it involves an important federal law that affects several provinces.

"But it's still disappointing to see Air Canada fight this battle against the former Aveos workers and against the federal law," David Chartrand, Quebec co-ordinator of the International Association of Machinists and Aerospace Workers, said in a news release.

By stretching out the legal battle, the carrier is doing everything in its power to save itself from its responsibilities, he added.



Advertisements

Latest Economic News

  • CP Rail second-quarter profit hurt by disruptions related to labour strife

    Economic CBC News
    ?Canadian Pacific Railway Ltd. says service interruptions related to labour negotiations and strike notices caused its net income to decrease 10 per cent in the second quarter despite higher revenues. The Calgary-based railway earned $436 million, compared with $480 million a year earlier. Source
  • CP Rail second-quarter profits hurt by disruptions related to labour strife

    Economic CTV News
    CALGARY -- Canadian Pacific Railway Ltd. says service interruptions related to labour negotiations and strike notices caused its net income to decrease 10 per cent in the second quarter despite higher revenues. The Calgary-based railway earned $436 million, compared with $480 million a year earlier. Source
  • Manitoba will charge 'social responsibility fee' on cannabis retailers

    Economic CTV News
    WINNIPEG -- When recreational cannabis is legalized later this year, it will be subject to a government fee and a wholesale markup in Manitoba. The provincial government says a "social responsibility fee" of six per cent will be applied to a cannabis retailer's total annual revenues. Source
  • Costco launches online grocery delivery in Canada

    Economic CTV News
    Costco.ca is the latest retailer to launch an online grocery store in Canada, starting with some stores in southern Ontario. The membership-based retailer has begun offering hundreds of non-perishable grocery items, beauty products and supplements online. Source
  • Nova Scotia's 'unique' cannabis stores unveiled

    Economic CTV News
    HALIFAX -- The Nova Scotia Liquor Corp. offered a glimpse inside one of its coming cannabis stores Wednesday, showcasing a unique retail hybrid not likely found anywhere else in the world. NSLC president and CEO Bret Mitchell took media on a tour of the cannabis store that's inside the NSLC on Joseph Howe Drive in Halifax, saying Nova Scotia is the only jurisdiction that brings cannabis and alcohol sales under one roof. Source
  • Manitoba Hydro boss announces retirement; says the time is right to leave

    Economic CTV News
    WINNIPEG -- The president and CEO of Manitoba Hydro has announced he is retiring less than three years after joining the Crown corporation. Kelvin Shepherd, who joined the utility in December 2015 after a five-year stint at MTS Inc. Source
  • CRA lawyers say Loblaw misused Barbadian subsidiary for tax avoidance

    Economic CTV News
    TORONTO - Government lawyers say Loblaw Companies Ltd.'s Barbadian banking subsidiary was "playing with its own money" rather than an active business with outside customers and is obligated to pay tax back home. Justice Department lawyer Elizabeth Chasson said in her closing arguments at the Tax Court of Canada that Barbados-based Glenhuron Bank Ltd. Source
  • Two become one? Planemakers work on tech to cut pilot numbers

    Economic CBC News
    Airplane manufacturers are working to adapt jets to reduce the number of pilots needed for long-haul flights and to build new cockpits designed for a single aviator in order to ease a global pilot shortage and cut airline costs. Source
  • Condos rushing to ban pot smoking before legalization

    Economic CTV News
    TORONTO -- Gerald Major goes out on the back balcony of his condo several times a day, leaning against the wall and smoking or vaping medicinal cannabis to ease the pain and other symptoms of severe arthritis. Source
  • Marriott to ban plastic straws by next summer

    Economic CTV News
    One of the world's largest hotel companies has followed the lead of other major food and travel players in banning straws across its properties by next summer. Marriott International -- whose portfolio includes more than 6,500 properties in 127 countries and territories around the world -- pledged to eliminate the use of single-use plastic straws by July 2019. Source