Originally Posted by
Adam Smith
This was not "kept quiet". As far as I can tell, it has not been AC's policy to publicly announce this type of contract. They didn't announce the previous contract with ST Aerospace for doing this work in the US, or their agreement with HAECO for Dream Cabin refits (around a decade ago, back when relations with China were much better).
If there are political and security reasons to object to the work being done in China, that's fine, but if AC can get the work done cheaper in the US or somewhere else, that should be up to them to decide.
The attitude that a strategic Canadian company should go wherever it can get the work cheaper, is not an acceptable position post Covid. It is irresponsible and ignores the spirit of supply chain resilience.
Prior to Covid, the Canadian healthcare system had a similar position in respect to masks, gowns and gloves. Most of the Canadian suppliers sourced their supplies from companies in China. There were contracts in place and government assurances. Some had even invested large amounts in manufacturing capacity. At the start of the pandemic, China seized the equipment and the manufacturing capacity. Supply contracts for the provincial hospital systems vaporized, often with the products being sold by Chinese companies to other entities. Canada could not enforce the contracts because Canada had no international clout or influence. This is why the Canadian and provincial governments have invested in Canadian technology and manufacturing capability for these products, even though the manufacturing costs are higher. The point is that Chinese companies cannot be trusted to respect a contract and the Chinese government can do whatever it wants to do when it comes to Canadians and Canadian companies. As the Fraser institute put it;
Air Canada is still flying high on Ottawa's corporate welfare. Therefore, Air Canada has a duty to its shareholders and to Canada not to select the lowest immediate cost, but the best cost that protects the airline from the heavy handedness of foreign interests and does not put Canadian national security at risk.. And yes, I am informing my cabinet minister MP of my views.