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

  • Howard Buffett stepping down from Coca-Cola board

    Economic CTV News
    OMAHA, Neb. -- Howard Buffett is planning to step down from the Coca-Cola Co.'s board, so he can spend more time running his foundation that focuses on improving agriculture in the developing world. Howard Buffett, who is billionaire investor Warren Buffett's oldest son, has served on Coke's board since 2010. Source
  • Socks and bonds: Edmonton pals conquer wacky dress sock market

    Economic CTV News
    Two childhood best friends from Edmonton are cashing in on the funky dress sock craze that seems to be sweeping the often bland world of professional menswear. Popular outlandish designs with names like aqua moustaches, surfing sloth, and mint flamingo party have seen Good Luck Sock grow its sales nearly four-fold and double the number of retailers that carry the company’s far-out footwear over the past year. Source
  • Trump's 'Buy American' policy could have major implications for Canada

    Economic CTV News
    WASHINGTON -- Donald Trump has made it clear he wants Buy American rules in the massive infrastructure program he's planning, launching an ardent defence of domestic-purchase requirements that can cause tensions with other countries. Critics of such Buy American provisions say they not only freeze out foreign competition, but hurt Americans too, by driving up the cost of construction, which means taxpayers get fewer roads and bridges for their buck and fewer construction jobs in the long…
  • Ontario steelmaker Stelco seeks court OK for moving ahead with restructuring

    Economic CTV News
    TORONTO -- Southern Ontario steelmaker Stelco is seeking court approval to move forward with its restructuring following an agreement with Bedrock Industries. Ontario Finance Minister Charles Sousa said in a statement Friday that Bedrock's proposal would mean that operations at the Hamilton and Lake Erie facilities would continue and 2,100 jobs would be preserved. Source
  • Cuba, Google strike deal to hike internet speed: sources

    Economic CTV News
    HAVANA -- Google and the Cuban government have struck a deal giving Cubans faster access to the internet giant's content, two people familiar with the agreement said Friday. Eric Schmidt, chairman of Google's parent company, will formally sign the deal Monday morning in Havana, the two people said. Source
  • Ford CEO says Trump threats won't change small car plans

    Economic CTV News
    DETROIT -- Ford Motor Co. is going ahead with plans to move small-car production from the U.S. to Mexico despite President-elect Donald Trump's recent threats to impose tariffs on companies that move work abroad. CEO Mark Fields said Ford's plan to move production of the Ford Focus from Michigan to Mexico will proceed, in part because U.S. Source
  • Major New York markets hit second consecutive day of record highs

    Economic CBC News
    Major New York stock indexes hit a second consecutive day of record highs while the Toronto stock market continued its six-day rise, continuing a post-U.S. election rally. On Wall Street, the Dow Jones industrial average recorded its third consecutive record-breaking day, advancing 142.04 points to 19,756.85. Source
  • Alberta drilling rights auctions deliver lowest payoff in 39 years

    Economic CBC News
    Sales of Crown drilling rights in Alberta have fallen to their lowest levels in 39 years. Statistics posted on the Alberta Energy website this week, following the last auction of 2016, show that oil and gas producers paid $137 million this year for the right to drill oil and gas wells on land where the province owns the mineral rights. Source
  • Trump expected to name a top Goldman exec to economic post

    Economic CTV News
    WASHINGTON -- President-elect Donald Trump is expected to name Gary Cohn, the No. 2 executive at the powerhouse Wall Street firm Goldman Sachs, to a prominent White House economic post. That's according to two people informed of the decision. Source
  • Trump deepens Goldman ties as he builds out economic team

    Economic CTV News
    WASHINGTON -- In the heat of the presidential campaign, Donald Trump accused primary rival Ted Cruz of being controlled by Goldman Sachs because his wife, Heidi, previously worked for the Wall Street giant. He slammed Hillary Clinton for receiving speaking fees from the bank. Source