Speculation mounts that Air Canada may spin off maintenance unit
Montreal, QC -- Apr. 30, 2002 -- According to a report in the Financial Post today, Air Canada plans to reorganize...
Montreal, QC — Apr. 30, 2002 — According to a report in the Financial Post today, Air Canada plans to reorganize its maintenance division by July 1. It will set up its Technical Services operation as a wholly owned, separate entity.
Spokesperson Priscille Leblanc said the unit is not currently for sale, but it might be in the future if market conditions improve.
The division maintains airframes, components and engines, and provides other services for Air Canada as well as other airlines from three main locations — Montreal, Winnipeg and Vancouver.
The airline’s union, the International Association of Machinists & Aerospace Workers, says it believes the maintenance unit is being set up to be sold or for an initial public offering (IPO), because Air Canada has $12 billion in debt and obligations and needs to find way of raising money.
Air Canada plans to reveal its first quarter results on Thurs., May 2, 2002, at 10:00 a.m. EST.
By Bill Roebuck, Editor