Aveos Fleet Performance Inc., the Montreal-based MRO provider, last week ceased operations, terminating the employment of approximately 1,300 workers.
“The company had no viable option but to cease operations,” Aveos chairman Eugene Davis said. “We deeply regret the job losses and the impact this decision has on our employees in Canada.”
The company said it has been met with “uncertain work volume across its business lines” from principal customer Air Canada (AC) as it “reduced, deferred and cancelled maintenance work,” resulting in approximately $16 million in lost revenue in less than two months. Aveos provided AC with airframe, engine and component work.
“For some time we have attempted to work for a consensual agreement with Aveos’ principal customer,” Davis said. “At this point, we have exhausted all measures. Their draft proposal received late yesterday evening did nothing to address the many issues previously discussed with them, and was unacceptable to us and our secured lenders.”
AC said the closure would not have an impact on its day-to-day aircraft maintenance or on its scheduled operations.
AC sold its technical services division in 2004, which was then sold to a consortium of private investors in 2007. A separate entity from AC, the company change its name to Aveos in 2008.
Article Source : ATW Daily News
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