Aveos Parent Eyes El Salvador After Canada Closing

The parent of an aircraft maintenance company spun off by Air Canada is expanding in El Salvador even as its Canadian arm liquidates its assets after terminating more than 2,600 employees, Reuters reported. Aveos, which shut its doors in Canada earlier this week, has corporate ties with El Salvador's Aeroman, with Aero Technical Support & Services Holdings, a closely held company domiciled in Luxembourg, owning both of them. While Aveos may count the Salvadoran unit as part of its network, the two operations are independent of each other, said Ernesto Ruiz, chief executive of Aeroman. In a letter to its roughly 1,800 workers in the tiny Central American country, Aeroman said Aveos' financial plight in Canada would have no effect on their jobs in El Salvador. Aveos filed for creditor protection in Canada on Monday, but neither Aveos nor its lawyers in Canada have so far said what impact, if any, this would have on the El Salvador operations. Both Air Canada and Aveos, once the airline's own in-house maintenance unit, have faced harsh criticism after mass layoffs in Montreal, Vancouver, Winnipeg and other Canadian cities. Aveos blames Air Canada for its financial failure, claiming that the country's largest carrier breached its contracts by deferring or reducing maintenance work it normally performs. Air Canada has denied that, saying it has met all of its contractual and financial obligations to Aveos. Read more.