Aveos files for insolvency protection, will have no impact on Air Canada day-to-day line maintenance

Aveos stated (19-Mar-2012) it has filed for insolvency protection under the Companies' Creditors Arrangement Act (CCAA) after ceasing maintenance operations in Montreal, Winnipeg and Vancouver on 18-Mar-2012. Aveos President and CEO Joe Kolshak said, "This was an extremely difficult decision, one we made only after lengthy and careful consideration of all other options. We deeply regret the job losses and the impact this decision has on our employees in Canada". The company employs approximately 2,600 employees across Canada. Air Canada stated that these events at Aveos, while disappointing, have no impact on Air Canada's day-to-day line maintenance operations. The carrier stated it is prepared with a contingency plan to ensure continuity of this work and it will continue to be performed in compliance with all regulatory and legal requirements. Aveos said it sought protection from creditors amid "uncertain work volume" after losing as much as CAD16 million (USD16.2 million) in revenue in less than two months as Air Canada cancelled and delayed maintenance work. Airframe maintenance work stopped permanently on 19-Mar-2012 and the company has not yet decided on its other operations. [more - original PR - Air Canada] [original - PR - Aveos I] [original - PR - Aveos II] [more - original PR - Aveos - III]