• Agreement will create 150 high-skill positions with potential for more
• Litigation with Manitoba Government to be settled

MONTREAL, March 14, 2016 /CNW Telbec/ - Air Canada today announced that it has entered into an agreement with the Manitoba Government to help establish a Western Canada Centre of Excellence for certain aircraft maintenance activities in the Province. Under the agreement, Air Canada will bring to Manitoba three of its aviation suppliers and partners with unique expertise and capabilities. The Centre is expected to create 150 jobs starting in 2017 with the possibility of further expansion and job creation in the future.

"Air Canada is very pleased to have reached an agreement with the Manitoba Government to work cooperatively to further support the Province's aviation sector and to help develop a Western Canada Center of Excellence. By bringing some of our suppliers and partners to Manitoba and facilitating their establishment there, Air Canada is strengthening the foundation for future growth of the industry in the Province. We are already one of the Province's largest employers with more than 725 jobs and this agreement should further develop and diversify Manitoba's aviation expertise and help create quality jobs in a highly competitive and dynamic industry," said Calin Rovinescu, President and Chief Executive of Air Canada.

Under the agreement announced today, Air Canada will facilitate and support the establishment in Manitoba by three of its longstanding suppliers and partners:

• Hope Aero Propeller & Components Inc., one of Air Canada's suppliers, which specializes in propellers, wheels, brakes and batteries;
• Airbase Services Inc., one of Air Canada's suppliers, which specializes in aircraft interior equipment maintenance; and
• Cargojet Airways Ltd., one of Air Canada's cargo partners, to whom Air Canada has agreed to lease one of its Winnipeg hangars on favourable terms to enable it to establish its own maintenance activities.

Start up for all three is expected to commence in 2017.

Air Canada has also agreed to encourage bidding by Manitoba suppliers for other services, including components work on future aircraft to enter the airline's fleet, subject to certification, price and quality considerations.

Subject to completion of final agreements, the Government of Manitoba has agreed to discontinue participation in litigation related to Air Canada's obligations under the Air Canada Public Participation Act.

About Air Canada

Air Canada is Canada's largest domestic and international airline serving more than 200 airports on six continents.  Canada's flag carrier is among the 20 largest airlines in the world and in 2015 served more than 41 million customers.  Air Canada provides scheduled passenger service directly to 63 airports in Canada, 56 in the United States and 86 in Europe, the Middle East, Africa, Asia, Australia, the Caribbean, Mexico, Central America and South America. Air Canada is a founding member of Star Alliance, the world's most comprehensive air transportation network serving 1,330 airports in 192 countries.  Air Canada is the only international network carrier in North America to receive a Four-Star ranking according to independent U.K. research firm Skytrax.  For more information, please visit: www.aircanada.com, follow @AirCanada on Twitter and join Air Canada on Facebook.

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SOURCE Air Canada