Air Canada loses Aveos appeal: must resume doing maintenance in Montreal

Former Aveos Fleet Performance employees protest outside the courthouse in Montreal, Tuesday, Aug. 14, 2012. (Ross Marowits / THE CANADIAN PRESS)

MONTREAL - Air Canada says it is considering whether to ask the Supreme Court to intervene to overturn a court ruling that requires the carrier to keep maintenance operations in Canada.

The Montreal-based airline says it is reviewing a Quebec Court of Appeal ruling that upholds a lower court's 2013 decision that backed a lawsuit filed by the Quebec government.

The province argued that Air Canada breached its legal obligations under the federal Air Canada Public Participation Act that privatized the airline in 1988 to keep heavy maintenance operations in Quebec, Ontario and Manitoba.

Air Canada had argued that it respected the law by conducting aircraft maintenance at its three Canadian facilities in Montreal, Winnipeg and Mississauga, Ont.

It also told the court that the Quebec and Manitoba governments have no jurisdiction because aviation is a federal matter.

The former federal Conservative government insisted it had no power to intervene, saying it received a legal opinion that confirmed that Air Canada respected the laws.

Aveos Fleet Performance, which obtained creditor protection, closed in 2012 in a move that laid off 2,600 employees, including about 1,700 in Montreal.