Evidence of meeting #44 for Transport, Infrastructure and Communities in the 40th Parliament, 3rd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was aveos.
A recording is available from Parliament.
12:40 p.m.
Director, Government Relations, Air Canada
It would decrease, and further than affecting the share price, you'd be damaging the long-term sustainability of the company. This is not a corporation that has a history of enormous financial success. The airline industry is a perpetual struggle.
12:40 p.m.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
In fact, your competition is not Canadian competition, in essence. Some of it is, obviously, like WestJet. But most of your competition is all the airlines in the world, including all the ones in—
12:40 p.m.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
—the U.S. So if Air Canada were singled out and restricted in its ability to operate independently, it would dramatically decrease your share price, probably undermine the confidence in your company for many years, and actually erode a tremendous amount of the wealth of independent Canadians who have invested in your company. Is that fair to say?
12:40 p.m.
Conservative
12:40 p.m.
Director, Government Relations, Air Canada
Yes. Look, the original Air Canada Public Participation Act is a hindrance to our commercial freedom. We have had to structure ourselves as sustainable through much effort, complying with that act, and we intend to comply going forward. But as for any furtherance of those restrictions, I wouldn't want to see anything done that would compromise the sustainability of a company that employs 23,000 Canadians and serves--
12:40 p.m.
Director, Government Relations, Air Canada
And it is owned 75%, at the bare minimum, by Canadians.
12:40 p.m.
Conservative
Brian Jean Conservative Fort McMurray—Athabasca, AB
So the $5 billion or $10 billion that Air Canada is worth is owned by Canadians, and that would be diminished?
12:40 p.m.
Conservative
12:40 p.m.
Conservative
The Chair Conservative Merv Tweed
Thank you.
We do have some committee business. Mr. McCallum was going to raise it as a point of order. I'm just going to open the floor to him for 40 seconds.
12:40 p.m.
Liberal
John McCallum Liberal Markham—Unionville, ON
Thank you, Mr. Chair.
You seem to be suggesting that Aveos and Air Canada are terribly distinct from each other. I'd like to advance the hypothesis that really the two of you are joined at the hip. Aveos does the Air Canada maintenance work. You're thinking of transferring workers from one to the other. It seems to me you're essentially one entity in many ways.
My question is, what percentage of Aveos does Air Canada own?
12:45 p.m.
Assistant General Counsel, Law Branch, Air Canada
It is a very minor share.
12:45 p.m.
Assistant General Counsel, Law Branch, Air Canada
It's less than that.
12:45 p.m.
Liberal
John McCallum Liberal Markham—Unionville, ON
I know it's less than 50%, but it's quite substantial. It's in the 30s, isn't it?
12:45 p.m.
Assistant General Counsel, Law Branch, Air Canada
I don't have the exact proportion at this time.
12:45 p.m.
Assistant General Counsel, Law Branch, Air Canada
It's a minority. We can provide it.
12:45 p.m.
Director, Government Relations, Air Canada
It's publicly available. We're happy to provide it.
12:45 p.m.
Conservative
The Chair Conservative Merv Tweed
Thank you.
And with that, I'll thank our guests today. We appreciate your time, and I'm sure there will be other opportunities for us to meet with you again.
12:45 p.m.
Assistant General Counsel, Law Branch, Air Canada
And happy holidays to you.