News
Aveos employees to receive $5.8 million in back pay
April 11, 2012, Montreal - A Quebec judge has ruled employees of insolvent aircraft maintenance company Aveos Fleet Performance will share $5.8 million in back pay, or up to $2,000 each.
April 11, 2012 By The Canadian Press
Mark Schrager approved the payment by April 21, along with $450,000 in employer payroll contributions.
The payment constitutes the "full and final payment due and payable'' to more than 2,600 employees who were terminated when the Montreal-based company closed and moved to liquidate its Canadian operations.
The April 5 court order says no further priority claims can be asserted against Aveos under the Companies' Creditors Arrangement Act.
In a separate order, Schrager sanctioned an agreement that allows Air Canada to repossess an Airbus A330 aircraft, engines as well as records and intellectual property held in an Aveos facility.
Aveos was formed after Air Canada spun off its technical services division in 2007. It announced plans to liquidate its assets, citing a decline in business from its largest customer.
But the airline's CEO told a Parliamentary committee the heavy maintenance company failed because it was unable to attract customers beyond Air Canada to diversify its revenue stream.
