Transport Committee on May 9th, 2016

[Ronnie Di Bartolo]

I believe there should be some type of growth, because I understand that Air Canada began to perform additional line maintenance work, which increased the number of maintenance employees with regard to line maintenance. I know what the growth was for Premier, but I can't tell you growth numbers for other companies at this time.

[Sean Fraser, Liberal, Central Nova, NS]

What was the growth for Premier?

[Ronnie Di Bartolo]

For Premier, it was about 130 additional employees. When we began on the Embraer fleet, that caused a shortage of space for Premier Aviation, and therefore we moved towards the purchase of another MRO facility in Quebec City that was on the verge of closing down. There were 139 employees there. We purchased the assets of the facilities and we hired all of the employees who worked inside that facility also.

[Sean Fraser, Liberal, Central Nova, NS]

Excellent.

A group like Premier, a Canadian company with operations in some place like Trois-Rivières, would not, without a bill like Bill C-10 passing, be able to bid on certain supply contracts for maintenance work. Is that correct?

[Ronnie Di Bartolo]

Of course, we would still be able to bid on other contracts, but taking away the C Series and Air Canada would definitely be a big loss to Premier Aviation.

[Sean Fraser, Liberal, Central Nova, NS]

I will split my time.

[The Chair, Liberal, Judy Sgro]

Okay.

Mr. Iacono.

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

Gentlemen, thank you for taking part in our meeting.

You said you had a surplus of 130 employees because of the closure of Aveos.

Here is my first question: why did Air Canada not chose Premier Aviation to maintain its aircrafts?

[Ronnie Di Bartolo]

We actually put a bid in for the maintenance of these Embraers, and Air Canada decided to try our facility, where we demonstrated our expertise and our turnaround time and high standards of quality, which they appreciated. They later increased the quantity of aircraft to Premier Aviation, up to the point that at one time we had the exclusive rights on the Embraer fleet.

When they first started with Premier, there was still maintenance in Tennessee through the manufacturer. Premier slowly proved itself able to give them the quality they needed, and the turnaround time, at a competitive price also.

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

Thank you.

My next question is addressed to the three witnesses.

In your opinion, is there a reason to make changes to the Act to amend the Air Canada Public Participation Act so as to indicate that the maintenance centres will be in Quebec, Manitoba and Ontario rather than in Montreal, Winnipeg and Mississauga?

Mr. Quick, would you like to start?

[Jim Quick]

I'm not sure I understand.

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

My question is, instead of these maintenance centres being only attributed to Montreal, Winnipeg, and Mississauga, what's the advantage or disadvantage of putting them in Quebec, Manitoba, and Ontario?

[Jim Quick]

I think you're adding to the diversity of the industry. We undertake to be global leaders in global sectors of the industry, and one of the things we pride ourselves on, one of the things we also say underneath that, is that we have to have diversity in the industry so that from a supply chain perspective we can maintain our global status, which is fifth in the world.

We think all three centres are adequately sourced in terms of capability and capacity to do whatever work that would be required through the centres of excellence.

[The Chair, Liberal, Judy Sgro]

Please go ahead.

[Jean-Pierre Bastien, Vice-President, Operations, Premier Aviation Québec Inc., Premier Aviation]

One of the few things in allowing for maintenance to be done across these provinces is it doesn't force companies like ourselves to have installation. You're diversifying where currently you want to be cost-competitive.

We talked about being in a market where we have to compete to gain the maintenance work. In order to do that, you've got to always look at where the most cost-competitive area is to do the maintenance. There's a big centralization of aerospace in Montreal or out west in Manitoba.

To me, it allows for diversification and it allows companies like ourselves and others to be able to bid competitively for this type of work.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Mr. Badawey.

[Vance Badawey, Liberal, Niagara Centre, ON]

Thank you, Madam Chair.

I have just three questions. First, are Lockheed Martin, as well as AJW Technique and Pro-Maintenance Aviation, competitors of yours?

[Jean-Pierre Bastien]

No. They do engine maintenance and component maintenance.

[Vance Badawey, Liberal, Niagara Centre, ON]

Okay, so they're not direct competition for you.

The second question is this: with respect to confidence in the industry, are you confident that you can provide complete overhaul services to Air Canada at competitive prices?

[Ronnie Di Bartolo]

Yes.

[Vance Badawey, Liberal, Niagara Centre, ON]

Finally, in terms of competing with Lufthansa Technik as well as Air France, which is KLM Industries, are you confident that you can be compete against them as well?

[Ronnie Di Bartolo]

Yes.

[Vance Badawey, Liberal, Niagara Centre, ON]

Thank you.

[The Chair, Liberal, Judy Sgro]

Are there any further questions?

Mr. Fraser.

[Sean Fraser, Liberal, Central Nova, NS]

To the Quebec Employers Council, one of the points you raise that I hadn't heard much about before was the potential boost to the tourism industry in Canada.

Could you elaborate a little on how Bill C-10 may give a boost to the tourism sector?