Why would Air Canada have planned the collapse of Aveos when it was a shareholder after participating in its restructuring in 2010? According to the air carrier, there is no evidence of the “so-called” conspiracy evoked by the lawyers of the ex-employees of the maintenance specialist.
“It is a rather extraordinary proposal, which, in our opinion, deserves extraordinary proof,” said Patrick Girard, one of the lawyers for Air Canada, Wednesday, before Judge Marie-Christine Hivon, of the Superior Court of Quebec. Now, not only do you not have the extraordinary proof, but you have no proof of this so-called conspiracy. ”
After the lawsuit the day before, it was the defense’s turn to present its version of the facts during the pleadings of the trial of the class action of at least 150 million brought by the former workers of Aveos against the largest carrier. air force in the country – now in its fourth week of hearings.
The amount claimed does not take into account individual damages.
In his pleadings, Me Girard spent a long time refuting the complainants’ allegations that Air Canada had prepared the crash of its supplier, removing it from work, delaying the payment of invoices and seeking new suppliers.
According to the defense, the action is inadmissible since it was brought in 2016, after the limitation period, which must be calculated since March 18, 2012, the date on which Aveos ceased its activities.
“There is not a witness who told you that Air Canada had such a plan to knowingly cause the closure of Aveos”, launched Mr.e Girard to Judge Hivon.
A former subsidiary of Air Canada which became an independent entity at the end of a process that ended in 2011, the company was very dependent on the airline company, which represented more than 90% of its revenues.
Faced with financial problems in 2010, Aveos proceeded with a restructuring. According to Me Girard, the air carrier has offered concessions “of nearly 100 million” to support its supplier in exchange for a 17.5% stake.
Air Canada agreed in particular to absorb, up to 50 million over three years, the losses suffered by Aveos for the maintenance of the airframes of its planes – activities which were loss-making for the maintenance company.
“Air Canada had nearly 20% of the shares of Aveos,” recalled Mr.e Girard. If it destroys Aveos, it destroys its own financial stake in the company, acquired a few years before for (approximately 850 million US). Why would Air Canada want to demolish it? ”
In 2007, Kohlberg Kravis Roberts (KKR) acquired a majority stake in the maintenance division of Air Canada which subsequently adopted the name Aveos. A little less than a year and a half after the transaction, the American investment firm had reduced the value of its investment in the maintenance company to zero.
Aveos had gone out of business in its Montreal, Mississauga and Winnipeg centers after losing much of its maintenance contracts. Occurring in March 2012, the event triggered a series of legal actions against Air Canada, which was accused of not respecting the obligations of its 1988 constituent law.
Nearly 2,600 people, including 1,800 in Quebec, had lost their jobs. This action covers the period from 2012 to 2016, when federal law was amended by the Trudeau government to provide flexibility to Air Canada.
Me Girard also looked into the testimony of ex-Aveos chairman Joe Kolshak, a key prosecution witness, who blamed Air Canada for exacerbating financial pressures on the company he initially ran. of the year 2012.
“He never told you that Air Canada had a plan to get rid of Aveos,” the lawyer told Judge Hivon.
Mr. Kolshak had notably estimated that Aveos would not have ceased its activities in March 2012 if the air carrier had respected its commitments. He recognized, however, that the maintenance company had to restructure itself in the hope of survival.