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Air Canada Reiterates Full Compliance with Air Canada Public Participation Act


News provided by

AIR CANADA

Mar 29, 2012, 01:08 ET

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MONTREAL, March 29, 2012 /PRNewswire/ - Air Canada President and Chief Executive Officer, Calin Rovinescu, today provided the following remarks to the House of Commons' Standing Committee on Transport, Infrastructure and Communities following the closure by Aveos Fleet Performance Inc., a separate and independently owned and managed supplier to Air Canada, of its operations in Canada:

"Let me state clearly and unequivocally that we continue to be in full compliance with the letter and the spirit of the Air Canada Public Participation Act - despite the demise of Aveos.

"In May 2011, less than one year ago, Mr. Justice Newbould of the Ontario Superior Court of Justice ruled on the issue of whether we were in compliance with the maintenance facility requirements of the Act following an application filed by the International Association of Machinists and Aerospace Workers.  The court found that Air Canada did meet the Act's requirements on the basis of our own overhaul and maintenance functions.

"Air Canada, irrespective of Aveos, continues to employ 2,400 maintenance employees at various bases in Canada, including those in Winnipeg, Toronto and Montreal.  This is 35 per cent higher than in 2007."

Mr. Rovinescu also reiterated Air Canada's expectation for a viable, long-term solution:

"Air Canada is encouraging MRO companies from across Canada and around the world to conduct due diligence and assess whether any of the former Aveos operations may be viable in Canada under new ownership.  We have further publicly indicated that we have a strong preference for working with a global MRO or manufacturer which has an interest and ability to provide component, repair and overhaul services in Canada, with particular emphasis given to Montreal, Winnipeg, Vancouver and Toronto."

About Air Canada and Aveos

Air Canada and Aveos are two separate entities. Air Canada sold its technical services division in 2004.  This company was then sold to a consortium of private investors in 2007 and subsequently changed its name to Aveos in 2008.

The Aveos workforce is independent from Air Canada and is covered by a separate collective agreement.

Visit aircanada.com for more information about Air Canada's maintenance operations: http://www.aircanada.com/en/about/media/facts/industry/maintenance.html

Air Canada is Canada's largest domestic and international airline serving more than 180 destinations on five continents.  Canada's flag carrier is the 15th largest commercial airline in the world and in 2011 served more than 33 million customers.  Air Canada provides scheduled passenger service directly to 60 Canadian cities, 57 destinations in the United States and 63 cities in Europe, the Middle East, Asia, Australia, the Caribbean, Mexico and South America.  Air Canada is a founding member of Star Alliance, the world's most comprehensive air transportation network serving 1,290 destinations in 189 countries. In 2011, Air Canada was ranked Best International Airline in North America in a worldwide survey of more than 18 million airline passengers conducted by independent research firm Skytrax.

CAUTION REGARDING FORWARD-LOOKING INFORMATION

Air Canada's public communications may include forward-looking statements within the meaning of applicable securities laws. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Forward-looking statements cannot be relied upon due to, amongst other things, changing external events and general uncertainties of the business. Actual results may differ materially from results indicated in forward-looking statements due to a number of factors, including without limitation, industry, market, credit and economic conditions, the ability to reduce operating costs and secure financing, pension issues, energy prices, employee and labour relations, currency exchange and interest rates, competition, war, terrorist acts, epidemic diseases, environmental factors (including weather systems and other natural phenomena and factors arising from man-made sources), insurance issues and costs, changes in demand due to the seasonal nature of the business, supply issues, changes in laws, regulatory developments or proceedings, pending and future litigation and actions by third parties as well as the factors identified throughout Air Canada's public disclosure file available at www.sedar.com. Any forward-looking statements contained in this news release represent Air Canada's expectations as of date of this news release and are subject to change after such date. However, Air Canada disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.

SOURCE AIR CANADA

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