Transport Committee on Dec. 14th, 2010

[Louise-Hélène Sénécal]

Whether the act applies or not is an issue of legal interpretation. I cannot give you a legal opinion today but we feel that our actions comply with our responsibilities. It is our intention to continue in that manner in the future.

[John McCallum, Liberal, Markham—Unionville, ON]

During this process and the possible restructuring of who the employer of these workers is, have you sought any assurances from Aveos about maintaining its facilities in Canada? Have you discussed that with Aveos? Have you sought undertakings from them that they will stay in Canada?

[Louise-Hélène Sénécal]

Trade discussions between ourselves and Aveos are confidential. Our business is as a Canadian transporter. It is therefore in our interest that maintenance services not be located too far away.

[John McCallum, Liberal, Markham—Unionville, ON]

Perhaps Mr. Guimond will have better luck with the witnesses than I have.

I don't think I got very far.

You go, Gerry.

[Gerry Byrne, Liberal, Humber—St. Barbe—Baie Verte, NL]

Is it built into the contract between Air Canada and Aveos that there have to be activities or facilities in the key centres you were referring to?

[Louise-Hélène Sénécal]

I do not know the contract clauses by heart. I cannot answer that question today.

[Gerry Byrne, Liberal, Humber—St. Barbe—Baie Verte, NL]

Can you forward to the committee a formal answer on behalf of Air Canada? That's a fundamental question.

[Louise-Hélène Sénécal]

I understand your question.

A commercial contract contains clauses of confidentiality. It is not only up to us to determine if I can provide you with this information.

[Gerry Byrne, Liberal, Humber—St. Barbe—Baie Verte, NL]

This is becoming bizarre, because we're examining a public statute with certain requirements built into it that Air Canada must maintain aviation maintenance facilities in three key centres. I'm asking a very simple question. The company in question has contracted out those services that would normally be encompassed by the legislation.

So can you not tell this committee whether or not you have built into clauses within the contract that your supplier of maintenance services must provide those services in the three areas we're concentrating on?

[Louise-Hélène Sénécal]

I do not have the contract clauses before me. As I stated, a trade agreement binds two parties: Air Canada and Aveos. I am not in a position today to confirm anything nor to provide you with the clause itself. However we can look into this. If the clause is not confidential, I will be able to share it with you. If it is, we will let you know.

[Gerry Byrne, Liberal, Humber—St. Barbe—Baie Verte, NL]

Can I ask for a timeline on when we can receive that?

[Louise-Hélène Sénécal]

I can tell you that if Aveos wants to outsource to parties that are not a part of their company, then it must obtain our consent.

[The Chair, Conservative, Merv Tweed]

If you can get that information, please provide it to me and I'll distribute it to the members of the committee.

[Louise-Hélène Sénécal]

Thank you.

[The Chair, Conservative, Merv Tweed]

Thank you.

Monsieur Guimond.

[Michel Guimond, Bloc, Montmorency—Charlevoix—Haute-Côte-Nord, QC]

Thank you, Mr. Chairman.

My first question is for you, Ms. Sénécal. Is the Air Canada Public Participation Act still in effect?

[Louise-Hélène Sénécal]

To my knowledge it is.

[Michel Guimond, Bloc, Montmorency—Charlevoix—Haute-Côte-Nord, QC]

I have a copy of the act before me. I would like to draw your attention to a section in the act which states the conditions that the newly privatized Air Canada was subject to. Paragraph 6(1)(e) requires that Air Canada maintain its headquarters in the Montreal urban community.

Do you believe that you are subject to that provision?

[Louise-Hélène Sénécal]

Section 6 deals with the terms and conditions of the continuation clauses. The continuation clauses include those terms.

[Michel Guimond, Bloc, Montmorency—Charlevoix—Haute-Côte-Nord, QC]

I can read. Sub-section 6(1) reads as follows: “The articles of continuance of the corporation shall contain”, and paragraph 6(1)(e) refers to the head office.

Do you feel that you are still bound by that clause?

[Louise-Hélène Sénécal]

By the way, the Montreal urban community no longer exists. Our continuation clauses must contain a provision that the head office—

[Michel Guimond, Bloc, Montmorency—Charlevoix—Haute-Côte-Nord, QC]

I will read paragraph 6(1)(d):

(d) provisions requiring the corporation to maintain operational and overhaul centres in the City of Winnipeg, the Montreal Urban Community and the City of Mississauga;

I would like to ask a question of Mr. Bissonnette, the Senior Director, Engines and Airframe Maintenance. Please be brief because I have several other questions. Could you please explain what the difference is between a maintenance centre and an overhaul centre?

[Michel Bissonnette, Senior Director, Engines and Airframe Maintenance, Air Canada]

Overhaul and repair centres are what I would consider heavier types of operations. Operational centres can be considered as line maintenance operations, but overhaul and repair centres perform long-term maintenance on engines, airframe, and components.

[Michel Guimond, Bloc, Montmorency—Charlevoix—Haute-Côte-Nord, QC]

Ms. Sénécal, are you of the opinion that Air Canada is complying with the continuation clause that states that you must maintain operational and overhaul centres in the cities of Winnipeg, Mississauga and the Montreal urban community?

[Louise-Hélène Sénécal]

As I stated in my opening remarks, yes.