Monday, March 19, 2012

Aveos Says Adios

I predicted this was going to happen, not Aveos directly but when Caterpillar left London Ontario for Muncie Indiana I predicted that there would be an exodus of profitable Canadian companies fleeing to the lowest wage countries they can find...

Aveos have asked for insolvency protection today in a Montreal court room...

Now before we get started let`s lay out a few details, Aveos was an Air Canada creation, in 2007 Aveos was actually Air Canada, the company splintered off the maintenance division of Air Canada and presto...Aveos is born

Here is what Wikipedia has to say about Aveos.


Aveos was founded as Air Canada Technical Services (ACTS) in 1937. It was created as the in-house maintenance division of Trans-Canada Airlines (TCA), which is the predecessor to Air Canada. In 1968, the company began providing airframe, engine and component solutions to non-Air Canada customers, helping them expand their MRO reach to new carriers. With Air Canada entering bankruptcy protection in 2003, the relation between the airline and others subsidiaries like ACTS was affected and transformed. In 2004, ACE Aviation Holdings became the parent company of Air Canada and with this restructuring, a decision was taken to separate Air Canada Technical Services from Air Canada the airline.[4] In 2005, ACTS became one of the first members of Airbus MRO Network.[5]
In February 2007, Air Canada Technical Services reached an agreement to acquire 80% of Aeroman, the MRO affiliate of TACA Airlines, a Central American airline. On October 16, 2007, ACTS officially became independent when US investment firms Sageview Capital and KKR Private Equity Investors acquired a 70% stake in the company.[6] This made these two US companies were the original investors of ACTS. On September 23, 2008, ACTS was rebranded and formally adopted Aveos Fleet Performance Inc. as their new name, as part of the process of becoming an independent company. The origin of the name Aveos comes from “av” which refers to the company's roots in aviation while “eos” signifies new beginning.[7]

Aveos hangar in Winnipeg, Canada

[edit] Aveos

Today, Aveos, with its subsidiary Aeroman in El Salvador, provides nose-to-tail maintenance for Boeing, Airbus and Embraer aircrafts. They work with strategic partners such as General Electric, CFM International.,[8] Hamilton Sundstrand and Honeywell.[9] In April 2011, some 1,900 Air Canada aircraft mechanics were forced to transfer from the airline to Aveos Fleet Performance Inc. Although the transfer is expected to be completed by Feb 18, 2012, Air Canada will keep about 2,000 employees for their daily checks.[10] Aveos announced their new president and CEO, Joe Kolshak, on April 27, 2011.[11]

Aeroman hangar in El Salvador

[edit] Aeroman

Aeroman was established in 1983 to provide maintenance services for Taca Airlines. In 1992, Aeroman was certified by the Federal Aviation Administration(FAA)[12] and in 2005 became a member of the Airbus MRO Network. As Aveos' subsidiary, Aeroman provides MRO services for narrow-body aircraft and if currently expanding its facilities. Located in San Salvador, its facilities are accessed by carriers from the US, Caribbean, Mexico, Central and South America.[13]

[edit] March 2012 Shutdown

On Sunday, March 18, 2012, Aveos Fleet Performance Inc. padlocked it doors, instructing many of its 1,800 Montreal employees to leave the premises at 5:30 p.m. and take their tools and belongings with them. According to several emails and voicemails to the Montreal Gazette, workers were told to contact the company for further instructions. The firm may file for bankruptcy protection Monday, March 19th.[14]
Approximately 1,800 of the affected employees are based in Montreal, while 350 are in Winnipeg and 250 are in Vancouver, according to the International Association of Machinists and Aerospace Workers. "The maintenance component that supplies work to the Air Canada fleet has effectively ceased operations," according to Lorne Hammerberg, the IAMAW's local president in Winnipeg.[15]
The truth is Aveos was really Air Canada`s maintenance department, a department that has been around since 1937, and as you can see from reading the above that Air Canada, in 2007 they created Aveos, in 2007 Aveos splintered away from Air Canada,...

 And in April 2011Air Canada "forced" 2000 in-house mechanics to transfer  from Air Canada to Aveos Fleet Performance....FULL STOP HERE!

Aveos`s workload (since 2007 when they were created) received 90% of the work they did from their parent company Air Canada, this is no surprise because Aveos was actually part of Air Canada the entire time Air Canada was a company.....

What happened?...What is going on here?...Stephen Harper won the election and has opened the exodus door for companies to slash costs by allowing companies to outsource and go offshore to the cheapest labour markets....Caterpillar was first, now Aveos and this was no accident...

Aveos created a subsidiary company called Areoman, it`s located in El Slalvador in Latin America, wages are 1/2 or less than Aveos`s middle of the road wage scale...

This sellout, the transferring of workers from Air Canada to Aveos was all orchestrated with Stephen Harper`s election, his majority win, when Aveos finishes its bankruptcy claims all pension liabilities will be removed, including the 2000 mechanics Air Canada transferred to Aveos ....2000 workers being transferred to a company that was planning bankruptcy from a way back, they can`t blame the economy because the world has emerged from 2008, Greece got its bailout, the stock markets are up...And when you consider that Aveos received 90% of its work from Air Canada the reason for going into bankruptcy protection today is a bold-faced lie....

Here is what I know, several months ago Aveos approached the union and asked about outsourcing significant volumes of work to American firms and to Aveos`s subsidiary company Aeroman in El Salvador....The company claimed that Aveos didn`t have enough workers to complete this work, this was proven to be false, and then this shocker, a mere 1 month after that company request the company approached the union again with a new request, that request being,  to lay off 97 employees...This request shocked a now very suspicious union, for what is it, one month after Aveos made the claim they didn`t have enough workers and requested large volumes of work to be outsourced out of country and 1 month later Aveos was requesting laying off 97 workers....Well the gig was up, this was collusion between Air Canada, Aveos and the Harper administration, for the writing on the wall was clear, Stephen Harper`s Government was siding with corporate profits and to hell with the workers.....

Flash forward 2 months to today, yesterday actually, Aveos without one word to the workers or the union locked their doors, told the workers to grab their tools and hit the bricks, and today Aveos is in court in Montreal making its case for bankruptcy protection and the language is sickening...


MONTREAL – A filing Monday for bankruptcy protection by Aveos Fleet Performance Inc. in Quebec Superior Court’s commercial division details catastrophic corporate finances and abysmal relations with its main client, Air Canada.
Aveos alleges the Montreal-based airline has even refused to deliver planes for long-scheduled maintenance.

Full Stop, catastrophic finances, Aveos was once Air Canada, finances and cash flow came from the parent company, .....Abysmal relations with Air Canada?..Are you kidding me, they are but one of the same peas wedded on the same pod....And there`s more quotes from this court filing that are just as incriminating...

Revenues slumped by $16 million in “less than two calendar months” this year because Air Canada has “reduced, canceled and deferred maintenance work with Aveos” since the start of 2012.
“The loss of such work has been devastating for Aveos’s financial position,” the request states.

 Look what that says, Air Canada stopped sending work to Aveos, the work went somewhere, Air Canada didn`t stop flying, maintenance doesn`t stop, so why at the beginning of 2012 did Air Canada decide to bankrupt its right arm , to bankrupt its own 2000 mechanics they "FORCED to Transfer" to Aveos a mere 11 months ago....

"The loss of such work has been devastating for Aveos’s financial position,” the request states.
In addition, the company’s finances have been hit by “crushingly high labour costs, rising fuel prices and reduced airline traffic.”
That has made it unable to compete with low-cost aircraft MRO (maintenance, repair and overhaul) service providers in Latin America, according to the company."
Full Stop..Air Canada knew by not sending work to Aveos that they would go under, Air Canada deliberately bankrupted their own people....And Aveos in their court filing use the phrase "Crushingly high labour cost"....Are you kidding me!....Wages haven`t budged upwards for years at Aveos and in some case fallen rather dramatically....The Company also states that they can`t compete with cheap labour costs in Latin America...Let`s cut to the chase, Aveos can`t compete with their own sister company Areoman in El Salvador..

The race to the bottom, Air Canada dumped 2000 workers onto Aveos knowing full-well that Aveos was being led to bankruptcy by Air Canada, along with gutting decent jobs in Canada Aveos will shed most if not all of their pension responsibilities, 

A race to the bottom, a race that Stephen Harper started, these jobs, the top mechanics make $35 dollars per hour, 80 K per year, not exorbitant wages but middle class family raising wages, skytrain police make more money for checking transit tickets!

The bottom line is this, Air Canada has deliberately bankrupted Aveos, Aveos is working in collusion with Air Canada in a race to the bottom, Aeroman was created by Aveos to replace Aveos, wages are but 1/3rd of the Canadian wage, this move breaks labour laws, it`s unethical, it`s immoral, Air Canada hasn`t skipped a beat, this was no shock, Air Canada had contingency plans ready before this happened....

And none of this would have happened if Stephen Harper didn`t have a majority..

Caterpillar, Aveos, who`s next Stephen Harper?

You Stephen Harper are a gutless two-bit dictator, you side with corporate profits, you don`t believe in the law, or human rights, or science, you care about one thing and one thing only, corporate profits and the big spaceship coming to take you and your fellow scorched earth Christian Fundamentalists away...

I hope your ship arrives very soon Stephen Harper for your Canada looks very much like Communist China.

The Straight Goods

Cheers Eyes Wide Open


Anonymous said...

All the taxpayer bailouts to Air Canada, million dollar salaries to the CEO and hundred's of thousands to manages (not Aveo)?
How disgusting can this government get? When will people realize that it is a "RACE TO THE BOTTOM" and you're all involved? It is going to happen in your own back yard! I get tired of hearing people who think they're safe in their job/livelihood, best think again. The politicians and corporations care about one thing, Money.
Stevie's gone to Asia again to meet with persons from the following company (oil and gas company) PTTEP

These people just don't care! All they're thinking of is filling their own pockets, to hell with everyone else. Gordo, Stevie, Christie and the list goes on and on.

Absolutely despicable. Their arrogance, and mightier than thou attitudes, absolutely DISGUST me.

Wake up people!

Anonymous said...

Obviously the plan is to break unions ,drive down wages, under educate our youth, sell out to the Chinese, create a petro dollar economy and have us rely on tar sands jobs as THE answer. I feel less secure for my old age well being every day. But, I'm willing to fight these facists in anyway I can.

Anonymous said...

China already pretty much owns BC. Our mills were shipped to China, along with our raw logs. China also owns BC mines. They are bringing their own people to work the mines. Campbell thieved and sold our assets. Boessenkool and Christy are selling off, what Real Estate and buildings that are left of the provinces assets.

China has bought up most of the tar sands. They are bringing their own people, to work those jobs too. China refuses to pay Canadian wages. China owns many company's in Canada. So, what Fadden of CSIS warned, has come true. China has made huge inroads into Canada.

Harper is only interested in his own power and glory. Only Harper and the giant oil and gas company's profit from the tar sands. Our resources and jobs, are owned by China.

Nor will the BC people profit from our mines. You bet, Campbell stuffed his wallet on everything he thieved and sold.

I firmly believe, Harper is behind the robo-calls. He stood to benefit the most. He was rabid and frantic to win, right out off his nut. Harper even had a many times convicted criminal working for him.
And of course, he had his favorite henchman Campbell working for him too.

Harper is no true Canadian. He is a, Neo-Nazi Reformer of his Northern Foundation Party. He was involved with the skinheads. This was in 1989.

Gary E said...

If Harper can bar the Pilots from taking job action (for the sake of the economy) then it stands to reason that he can prevent this bankruptcy farce for the same reason. Air Canada says that the aircraft on the ground in AVEAO's hangars without landing gear can affect 3000 travelers per day. How's that for screwing up the economy.

My solution. Fly WestJet. Boycott Air Canada. Now if no one uses the airline then the pilots won't be called to work. How is that asshole Harper going to make people use the airline. By Legislation. I think not.

Anonymous said...

I call them WestRat a non union airline with cattle cars for aircraft.


Anonymous said...

Robert Milton orchestrated this- and he's not finished yet !