Quebec drops lawsuit as Air Canada agrees to service CSeries jets in province

QUEBEC CITY – Air Canada has decided to service as much as 75 passenger jets it’s buying from Bombardier Inc within the companies’ home province of Quebec for 20 years, officials said on Wednesday.

Quebec will also drop a lawsuit it filed against Air Canada for not living up to a commitment to keep part of its aircraft maintenance operations in Montreal, Quebec Premier Philippe Couillard said inside a statement.

A spokesman for Quebec Economic Development Minister Dominique Anglade said on Wednesday the government had settled its case with Air Canada, to acquire the airline receiving conduct maintenance around the CSeries jets in the province.

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Air Canada, which lost lower court decisions in Quebec Superior Court and also the Quebec Court of Appeal on the issue, will drop an appeal it filed recently with the Supreme Court of Canada.

Earlier on Wednesday, Montreal-based Bombardier announced it had signed instructions of intent to sell up to 75 CS300 aircraft to Air Canada as much as $3.8 billion, based on the market price. The plane maker also said hello will cut about 7,000 jobs within the next two years.
? Thomson Reuters 2016