AVEOS closes the doors

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BGH
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Re: AVEOS closes the doors

Post by BGH »

I have many friends whose tools ended up behind closed doors after a company failure.Each was asked to set up a pick up time & then let someone associated with the reciever have a look inside the box to ensure that none of the ex companies tools were in your possession.You were then assisted with the removal of your tools & signed a release saying that you did indeed recieve your tools.
Bit of a hassle,but ended well.
Daryl
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Road Trip
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Re: AVEOS closes the doors

Post by Road Trip »

Not to be all gloom and doom but maybe this isn't the worst of it. I know that AC has other options for maintenance but AVEOS seems to be the main supplier at this time. Is it even possible for the other contractors to pick up the slack in the short term?

In otherwords no maintenance = no planes being being serviced = alot of peoples flights getting cancelled.

How long can AC operate without AVEOS? Is this a minor road bump as competitor maintenance facilities pick up the slack or is it a show stopper grounding a good portion of the fleet for an undetermined amount of time?
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Northern Flyer
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Re: AVEOS closes the doors

Post by Northern Flyer »

From what I understand watching the news tonight. AVEOS closed their doors because AC is behind on 80 million in payments to the company. Allegedly AC offered them 50 million today to complete the projects that have already been started though it has not been announced whether or not AVEOS will accept.

Why would any other private company want to do business with AC?
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teacher
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Re: AVEOS closes the doors

Post by teacher »

Aveos layoffs could cause flight cancellations

Air Canada said Monday it could be forced to cancel flights and strand thousands of passengers if the maintenance company that obtained creditor protection Monday is unable to complete repairs to several planes.

The development represents more woes for the beleaguered national carrier, which has been hit by a string of labour disputes.

The threat of cancelled flights came in a Montreal court during a creditor protection hearing. The airline's lawyers argued in vain Monday for a Quebec Superior Court to order Aveos Fleet Performance Inc. to not lay off more workers and meet its obligations to complete the repairs.

Right now, three Air Canada widebody planes and several narrowbody aircraft are sitting in Aveos facilities across the country, some missing landing gear. If the planes aren't serviced, delays affecting 3,000 passengers could ensue, warned Air Canada lawyer Louis Belanger.

Belanger said the next 24 to 48 hours will be crucial in determining if the aircraft repairs can be completed on schedule.

Monday night, in an apparent bid to avoid any air disruptions, Air Canada announced it would extend $15 million in financing to Aveos. In a statement, Air Canada said the money was to "assist in stabilizing Aveos for the benefit of its stakeholders and employees so that it can proceed with a more orderly restructuring."

In the statement, the airline said it hoped the money would allow Aveos to reopen some operations that Aveos said it would close, and avoid threatened layoffs. The financing offer is subject to court approval.

Earlier, in a Montreal court, Justice Mark Schrager denied an Air Canada request that would have forced Aveos to maintain operations and employment to complete the contracted repairs.

"Accommodation, if there is any between Aveos and Air Canada, is going to be made in a boardroom, not a courtroom," he said before granting creditor protection Monday.

Aveos was once Air Canada's technical services division, but was later spun off as a separate company.

On Sunday, it served notice to employees that it will shut its heavy maintenance operations in Montreal, Winnipeg and Vancouver, laying off approximately 2,400 employees.

On Monday, the company filed for protection under the Companies' Creditors Arrangement Act.

At first, Air Canada played down the significance of the closures.

"These events at Aveos, while disappointing, have no impact on Air Canada's day-to-day aircraft maintenance and repair activities," the airline said, explaining that its daily upkeep is handled in-house.

"The airline typically performs its line maintenance activities overnight or between flights, as necessary," the statement explained.

Meanwhile, the International Association of Machinists and Aerospace Workers says Air Canada caused the problems at Aveos by sending its heavy aircraft maintenance business to other providers.

It said the layoff of Aveos workers is a violation of the Air Canada Public Participation Act and it wants the federal government to intervene and save their jobs.

"We want the federal government to intervene, otherwise a viable industry and its highly skilled workers will vanish forever," said Dave Ritchie, Canadian General Vice President of the IAMAW.

The union contends the government and Canada Industrial Relations Board should have done more to ensure Aveos was financially viable before approving the transfer of workers from Air Canada.

Aveos argues Air Canada is responsible for $10 million in severance payments owed to laid off airframe workers.

Shutdowns prompt protest

The Aveos announcement prompted scores of employees to protest. About 1,000 workers blocked access to an Air Canada building near Montreal's Pierre Elliott Trudeau International Airport Monday morning, while a few kilometres away another group blocked access to an Aveos facility.

Reporting from the scene of the picket at 500 Cote Vertu West, CTV Montreal's Cindy Sherwin said the employees simply want answers.

Aircraft technician Rehan Sheikh said he was floored when his manager phoned to inform him of the shutdown late Sunday afternoon.

"Basically he told me that Aveos has closed down. It's shut down, don't come into work on Monday," Sheikh said.

"It's pretty traumatizing to find out like that. I mean, at least give us a two week notice or something like that."

Air Canada maintenance work accounts for an estimated 90 per cent of Aveos' business.

In its court filing, Aveos said it has been hurt by "uncertain work volume" across all its business lines from its main customer Air Canada and high labour costs.

"Since the beginning of 2012, Air Canada has reduced, deferred and cancelled maintenance work with Aveos, which has resulted in $16 million lost revenue in less than two calendar months," said its court petition.

"While Aveos remained ready, willing and able to perform such work, the loss of such work has been devastating to Aveos' financial position."

Aveos said it was owed $60 million, mostly from Air Canada. As of January, its liabilities exceeded the book value of its assets by $165 million.

The company said it lost nearly $49 million before taxes in the fourth quarter and $9.5 million in the first nine months of last year.

Weekend woes

The protests come after a weekend of confusion, delays and cancellations for Air Canada.

The airline appeared to be back to business as usual Monday, although the departure schedule posted on the Greater Toronto Airport Authority website showed Air Canada flights to Ottawa, Montreal, Winnipeg and Seattle were all cancelled. Only one non-Air Canada flight, a Dallas-bound WestJet/American Airlines - was cancelled.

Disruption and frustration loomed over what is typically one of the year's busiest travel periods this weekend, as Air Canada coped with a confluence of factors including weather, fire and an unusually high rate of illness among its pilots.

The woes began Sunday, when flights, mostly out of Montreal, were cancelled or delayed. The disruptions came after several pilots called in sick, creating crew shortages.

The airline has since confirmed that the resulting disruptions were caused, in part, by "higher-than usual pilot book-offs."

"While Air Canada supports the right of its employees to book off when they are unwell or otherwise unfit to work, we cannot condone such activities as part of industrial action to disrupt our operations and we have asked the CIRB (Canadian Industrial Relations Board) to intervene," Air Canada spokesperson Peter Fitzpatrick wrote in a statement to CTV News.

Travellers were frustrated again on Sunday, after an electrical fire knocked out the lights on one of Toronto Pearson International Airport's five runways. With a blanket of thick fog rolling across the region, the runway was shut down.

Air Canada and other airlines were forced to cancel or delay more flights as a result. And by the time the runway was returned to service in the afternoon, the ripple effects were already cascading through airline schedules across the country and beyond.

The weekend-long woes came at an inopportune time for travellers making their way home from March Break holidays, and just days after the Senate passed back-to-work legislation intended to prevent labour disruptions at the airline.

Labour Minister Lisa Raitt tabled that legislation after referring threatened lockouts by its pilots and ground crew unions to the CIRB.

Air Canada is currently locked in a contract dispute with the unions representing its 3,000 pilots and its approximately 8,600 baggage handlers and ground crew.

With a report from The Canadian Press

http://www.ctv.ca/CTVNews/TopStories/20 ... ct-120319/
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Sheila
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Re: AVEOS closes the doors

Post by Sheila »

Rockie wrote:
KISS_MY_TCAS wrote:The fact that Air Canada owes them over 80 million has little to do with government involvement, they haven't bailed them out again.
The slow motion destruction of Air Canada and its various components that have been sold off for profit is very much a result of corporate greed and government incompetence. Without even getting into the larger issue of a disappearing middle class and the economic activity it stimulates, loss of jobs and their migration out of the country is a critical social issue that is directly the government's responsibility.
Now this becomes more clear for me because it is another axe chop. I am suspecting they will not do anything to save Air Canada .....,....by getting rid of ....Air Canada. You're suggesting no one will be able to afford to fly and that I can see as well.
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Last edited by Sheila on Wed Mar 21, 2012 11:02 pm, edited 1 time in total.
YQLRookie
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Re: AVEOS closes the doors

Post by YQLRookie »

First of all, good luck to everybody laid off. I hope everyone of you 2400 find new employment.
I just have a few questions on the whole situation.
-An article I read states that 15 aircraft are stuck in those hangars, some without landing gear. What is Air Canada's plan to get those aircraft out? I assume that there are few or no other facilities at those airports to take care of such heavy work. For the rest of the fleet, who will do the maintenance now? For the narrowbody aircraft, could this work by contracted out to airlines like Delta or United with large similar fleets to AC, and the widebody work to Asia or Europe?
-Also, if I'm not mistaken there is a big AC hangar in YYC, is that operated by Aveos?
-Aveos do not do Jazz's maintenance, correct?
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teacher
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Re: AVEOS closes the doors

Post by teacher »

I believe at Jazz we do our own heavy maintenance.
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Diadem
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Re: AVEOS closes the doors

Post by Diadem »

ruddersup? wrote:Sure is easy to jump all over the company. It's time to get rid of Unions IMHO.
Would you like to substantiate that claim? Do you have any evidence that the unions, or the union members' exorbitant wages, are responsible for the fiscal insolvency of the company? Based on news reports from a week ago this has much more to do with Air Canada outsourcing maintenance to China, and based on news reports from today it's almost entirely to do with Air Canada not paying their bills.
It sure looks like AC is digging itself a lot of holes, and this time there were some unintended repercussions. Maybe the public and the government will start to realize that the problems are more systemic than just overpaid pilots. Rovinescu made this bed, and he'd better be able to lie in it.
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gianthammer
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Re: AVEOS closes the doors

Post by gianthammer »

Unfortunately this has been years in the making, this just may be an opurtune time for AC to play some tricks. How much does a crew of guys off the street in El Salvador cost compared to a crew of skilled Canadian Profesionals? I'm afraid this may be the beginning of darker time to come for Canadian AMO's


From Aveos website;

"Our new identity, Aveos, is an important step in our evolution as an independent and global player in the MRO marketplace. The main attributes of our new brand are: dependability, expertise, seamlessness and openness. These build on our tradition of excellence and dedication to quality and safety and act as the cornerstone of our strategy to be the integrated solutions provider of choice to the customers we serve. A true partner in performance — from the ground up.

Today, we are the premier independent, nose-to-tail MRO (maintenance, repair and overhaul) provider in the Americas. With our affiliate Aeroman, Latin America’s top MRO provider, and our strategic partnerships, we offer a comprehensive range of customizable services across five facilities located in Canada and El Salvador."
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WileyCoyote
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Re: AVEOS closes the doors

Post by WileyCoyote »

Yeah, where's everyone's unions now? People need to learn to stand up and pull their heads out of the sand. There's always signs when companies start falling apart. Quit thinking unions are doing the best for you, because they are not. Start talking to the people that actually write your paycheck.
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proper
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Re: AVEOS closes the doors

Post by proper »

http://www.pbs.org/wgbh/pages/frontline ... e=bigimage

Hell in a toolbox...err I mean handbasket. You pay peanuts, you get monkeys. Monkeys and aviation don't mix well.
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Rockie
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Re: AVEOS closes the doors

Post by Rockie »

MONTREAL, March 19, 2012 /CNW Telbec/ - Following the filing by Aveos Fleet Performance for insolvency protection before the Superior Court of Quebec under the CCAA earlier today, Air Canada has extended to Aveos, through its Court appointed Monitor, FTI Consulting Canada, a $15 million Debtor-in-Possession (DIP) financing, which it will also file on the court record before the presiding judge. The DIP financing, which is substantially similar to an offer extended by Air Canada over the weekend, is intended to assist in stabilizing Aveos for the benefit of its stakeholders and employees, so that it can proceed with a more orderly restructuring. This stabilization should permit Aveos to reopen certain of its facilities and recall certain of its employees, which should in turn allow Air Canada to induct some additional maintenance work with greater confidence over the coming days and weeks. In addition to approval by Aveos, the DIP financing is subject to the approval of the Court.

What this really means is that Air Canada will give AVEOS approximately 1/4 of what it owes them to keep them running just long enough to finish work on the Air Canada aircraft currently in their hanger, and you can be sure AC insisted all money go to completing their planes plus other less than generous conditions.

Once the work on Air Canada's planes is finished...so is AVEOS.

AVEOS knows that and has thrown AC's proposal back in their face with a big "NO THANKS", and has stated that if Air Canada paid the $60 million it owes them none of this would be necessary.

$60 million is a lot of money. But it's still $20 million less than they paid Robert Milton to create this mess in the first place.
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YCL Boy
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Re: AVEOS closes the doors

Post by YCL Boy »

What's the story with the pension plan disappearing ???
Some of these employees worked at AC for years then were forced to transfer over to AVEOS, if not it was considered a resignation so they would loose their pension plan ?? now AVEOS goes under because AC does not pay the bills and I'm hearing their Pension Plan is gone. IS THAT RIGHT ???

BTW: The employees will have their personnel tools back shortly.
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wallypilot
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Re: AVEOS closes the doors

Post by wallypilot »

Since AC owes Aveos money, why can't AVEOS call in it's credit extended to AC and force it into CCAA filing? This makes no sense to me that company A owes company B money, company A has the $80 million available, yet it is company B that ends up hooped. Aveos should have called in these bills weeks ago to avoid this. I'm sure there's a reason why they didn't and it would be interesting to hear what it is. Maybe the ones in charge at the top are buddies, and AVEOS is trying to dispose of it's higher cost unionized operations without having to pay any severance, etc? Pure conjecture, I'm just sayin', though.
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Re: AVEOS closes the doors

Post by Expat »

Wally,

You are probably right. Difficult to prove, but a brilliant plot! AC was being turned around by a specialist. He knew all the tricks. He used them, and turned AC around.
Welcome to the new business world. :shock:
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ruddersup?
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Re: AVEOS closes the doors

Post by ruddersup? »

Diadem,
You have your head in the sand? It is now a world market and the unions are holding us back from being competitive, like it or not/good or bad, we have to live with it , adjust now or worse times ahead. IMHO
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Rockie
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Re: AVEOS closes the doors

Post by Rockie »

ruddersup? wrote:Diadem,
You have your head in the sand? It is now a world market and the unions are holding us back from being competitive, like it or not/good or bad, we have to live with it , adjust now or worse times ahead. IMHO
Does managerial incompetence ever have anything to do with being uncompetitive in your world.
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ruddersup?
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Re: AVEOS closes the doors

Post by ruddersup? »

Rockie,
Well of course. The question is rhetorical. Go to the shareholders meeting and scream and request answers, it could be done.
Or sit back and say they are ***holes. Hmmmmmmmm.
I'm looking at the big picture and there isn't a union out they that cares if they are competitive on the world stage It's all about greed- management, unions, employees but the sobering fact now is the rest of the world is entering the game. Become self employed like I've done for almost 40 years, then strangely enough your whole perspective will change. IMHO
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Rockie
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Re: AVEOS closes the doors

Post by Rockie »

ruddersup? wrote:I'm looking at the big picture and there isn't a union out they that cares if they are competitive on the world stage
There's one staring you in the face on these pages. Air Canada pilots are smart enough to know that the customer pays their wages despite what you might think, and we have put ourselves at risk with this company in order to not alienate them. Air Canada senior executives know that and are taking advantage of it through misleading press releases and selective omissions of relevant information. People like you are only too eager to swallow it.
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JayVee
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Re: AVEOS closes the doors

Post by JayVee »

ruddersup? wrote:I had a friend who worked on the Arrow project and when A.V.Roe shut down it was bedlam. The employees got their stuff and everything else that was not nailed down.
Sure is easy to jump all over the company. It's time to get rid of Unions IMHO.
Not sure of the relevence of A.V.Roe closing; kind of a different story, and didn't that happen 50 or 55 years ago?

I suppose non-union workers wouldn't be concerned about their tools, eh? Certainly not like those trouble-makin union bastards.
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