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Air Canada has contingency plan if Aveos can't meet contract obligations

Air Canada says a company that provides maintenance work to the airline is filing for insolvency protection, but that it should have no bearing on day-to-day operations.

Aveos Fleet Performance Inc. is in court in Montreal today.

Aveos, which provides aircraft maintenance to Air Canada, has shut down plants in three cities, laying off more than 2,400 workers.

Air Canada has been advised that Aveos has filed for insolvency protection and calls the events “disappointing.”

Air Canada says its fleet’s maintenance and repair activities are conducted by its own employees at its own facilities.

The airline says Aveos has been doing specific work that includes airframe, engine and component work as part of scheduled, pre-planned checks.

Air Canada says it has a contingency plan involving other companies if Aveos is unable to ensure the work can be done.

Air Canada is Aveos’ largest customer, which provides about 90 per cent of its maintenance overhaul work.

Its exclusive contract expires in June 2013 and Air Canada has issued a request for proposals for future contracts.