Aveos files for CCAA protection in Canada
19-Mar-2012 Aveos, an independent, full service maintenance, repair and overhaul (MRO) provider to the aviation industry, has initiated proceedings under the Companies' Creditors Arrangement Act (CCAA) in Canada. As of March 18, 2012, Aveos ceased its Airframe maintenance service operations and will make decisions with respect to its other operations as it seeks Court protection to allow it a period of time to assess its options. Aveos employs approximately 2,600 employees across Canada.
"This was an extremely difficult decision, one we made only after lengthy and careful consideration of all other options. We deeply regret the job losses and the impact this decision has on our employees in Canada," said Joe Kolshak, President and Chief Executive Officer, Aveos Fleet Performance.
The company was forced to file CCAA proceedings, in part, due to uncertain work volume across its business lines from Aveos' principal customer. Since the beginning of the year, its principal customer reduced, deferred, and cancelled maintenance work, which resulted in approximately $16 million in lost revenue in less than two months. While Aveos remained ready, willing and able to perform such work, such work did not materialize. This has been a devastating blow to Aveos, which contributed to the company needing to file for CCAA protection.
FTI Consulting Canada has been appointed to direct and supervise the CCAA process as Court-appointed monitor.