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Quebec subsidy firms up US$1 billion Bombardier C Series investment
THE Quebec provincial government has struck a deal with Montreal-based planemaker, Bombardier for a US$1 billion investment in its troubled C Series jetliner.
The C Series, more than two years late and US$2 billion over budget, will be carved out into a partnership 50.5 per cent owned by Bombardier and 49.5 per cent by Quebec, the company said in a statement, Bloomberg reported.
The province's investment will consist of two $500 million payments, on June 30 and September 1. Bombardier announced plans for the arrangement in October.
Canadian Prime Minister Justin Trudeau said this month that the government is still considering Bombardier's request for $1 billion in federal aid. The company has balked at demands that its founding family loosen control and issue $1 billion in new stock.
Innovation Minister Navdeep Bains said June 14 that discussions also include the manufacturer's headquarters and research and development.
The C Series has enjoyed a sales revival this year, with Air Canada placing an outline order for 45 CS300s in February and Delta Air Lines agreeing in April to buy 75 smaller CS100s worth $5.6 billion at list price. The first plane is due to enter service this summer with Deutsche Lufthansa AG's Swiss unit.
British Airways parent IAG SA said on June 3 that the contracts had made the C Series a more viable prospect and that it could envisage placing a future order for the plane, Bombardier's bid to enter the narrow-body airliner market dominated by Boeing and Airbus.
The C Series, more than two years late and US$2 billion over budget, will be carved out into a partnership 50.5 per cent owned by Bombardier and 49.5 per cent by Quebec, the company said in a statement, Bloomberg reported.
The province's investment will consist of two $500 million payments, on June 30 and September 1. Bombardier announced plans for the arrangement in October.
Canadian Prime Minister Justin Trudeau said this month that the government is still considering Bombardier's request for $1 billion in federal aid. The company has balked at demands that its founding family loosen control and issue $1 billion in new stock.
Innovation Minister Navdeep Bains said June 14 that discussions also include the manufacturer's headquarters and research and development.
The C Series has enjoyed a sales revival this year, with Air Canada placing an outline order for 45 CS300s in February and Delta Air Lines agreeing in April to buy 75 smaller CS100s worth $5.6 billion at list price. The first plane is due to enter service this summer with Deutsche Lufthansa AG's Swiss unit.
British Airways parent IAG SA said on June 3 that the contracts had made the C Series a more viable prospect and that it could envisage placing a future order for the plane, Bombardier's bid to enter the narrow-body airliner market dominated by Boeing and Airbus.
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