Quebec court approves sale of Aveos engine centre

Washington DC
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The Quebec superior court has approved Lockheed Martin Canada's purchase of Aveos' engine maintenance facility, an 11 January court filing shows.

The Lockheed Martin subsidiary first signaled interest in signing a long-term lease for the building, which the court approved on 14 December 2012. However, it then decided to purchase the building and entered into an asset purchase agreement for the facility on 21 December.

Lockheed Martin Canada could start operations at the facility as early as late January or in February, says a report from a court-appointed monitor. The company announced the purchase on 7 January and plans to offer General Electric CF34 and CFM International CFM56 engines maintenance capabilities at the facility, which will be renamed Kelly Aviation Centre Montreal.

Lockheed plans to hire former Aveos workers at the new facility. About 2,600 were laid off after the company declared bankruptcy on 19 March 2012. About 1,800 represented by the International Association of Machinists lost their jobs, 1,200 of which were based in Montreal. UK firm AJ Walter plans to hire at least 100 workers by the end of the year for AJ Walter Technique, its new component repair facility situated in another former Aveos facility.

Aveos had been operating a 515,000ft2 (156,972m2) engine maintenance centre with three test cells before declaring bankruptcy.