Air Canada said that Aveos, its former aircraft maintenance firm, which sought creditor protection earlier this year, has been unable to secure bids for its engine maintenance and airframe maintenance businesses.
Aveos Fleet Performance, once the airline's maintenance division, halted operations in March and laid off around 2,600 workers, most of whom were employed at maintenance facilities in Montreal, Winnipeg and Vancouver.
Last month, Air Canada and Aveos reached an agreement that both parties said would help facilitate a sale of some of Aveos' assets. And the airline promised to offer some service contracts to a buyer of the Aveos assets.
Aveos has been trying to sell its engine, component and airframe segments independently.
Air Canada said on Thursday despite the concerted efforts undertaken by Aveos, there were no offers received from parties willing to buy or restart its engine maintenance business as a going concern and resume operations at its facility.
The airline said that Aveos has received offers for the sale of all or certain assets of its components maintenance division and discussions are ongoing.
The companies had already disclosed last month that the sale had failed to drum up any bidders for the airframe maintenance business, which carries out major work such as hull repairs, window replacements, and corrosion treatment as well as related inspections.
In light of this, Air Canada said it has now identified four maintenance, repair and overhaul firms to service its fleet of 205 aircraft.