Air Canada To Keep Some Work With Aveos Buyer
Air Canada and Aveos have reached an agreement that will help facilitate a sale of some assets of the bankrupt aircraft maintenance firm, and the airline promised to offer some service contracts to a buyer of the Aveos assets, Reuters reported. Aveos Fleet Performance Inc, once the airline's maintenance division, halted operations in March and laid off roughly 2,600 workers, most of whom were employed at maintenance centers in Montreal, Winnipeg and Vancouver. The monitor's report said Air Canada has agreed to waive any rent on facilities leased by Aveos until Sept. 30. It has also offered a buyer an exclusive contract for its engine maintenance business through 2018, in an effort to drum up bids. "Air Canada has agreed to provide its support and consent to the assignment of the new engines contract, so long as the successful purchaser meets Air Canada's requirements," according to the court filing. Air Canada, which was Aveos' main customer, filed a motion in May seeking to terminate its contracts with Aveos. Aveos said that would curb interest in its asset sale process and the two sides agreed to negotiate a resolution. Aveos is seeking to sell its engine, component and airframe segments independently. Read more.