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Canada says it actively wants to help Bombardier

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The top Canadian official probing a request by planemaker Bombardier Inc (BBDb.TO) for aid to support its new CSeries passenger jet on Monday indicated for the first time that Ottawa actively wanted to help the company, highlighting the number of jobs it provides. Innovation Minister Navdeep Bains until now has said merely that the Liberal government would closely examine Bombardier's request for $1 billion in aid and outlined some of the concessions he wants in return. (www.reuters.com) さらに...

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canuck44
canuck44 7
The sales to Delta and Air Canada pretty much give cover to the Feds to jump in with operating costs as it appears to be a good and sustainable enterprise with the order books filling up.

Quite apart from what is good business, for the Federal Liberals it is a political necessity if they are to maintain support in Quebec and support for the Quebec provincial government which now holds 49% of the C-series program. Failure to jump on board will erode both the Federal and Quebec Liberal politicians.

The money will be forthcoming...probably as a below market interest rate loan with interest only for a few years. Expect a series of puff pieces from all three parties before it is announced.
GregMaynard
Beneficial in keeping some jobs in North America? A lot of the components are out sourced including fuselage components made in China. Rid out sourcing & then think about it? As well the Canadian gov't provided GM financial support with came with ownership in shares. Give a billion one would expect redeemable shares of at least 500 million in the company or no deal. That is what I call investing in Canada's future. I believe strongly in the jet success however handouts should come with stipulations
nicoarreman
The purchase of 75 aircraft by Delta, may well be a great boost for Bombardier, but the price is below cost and Borbardier will have to work very hard to make it a profitable plane. For this price opposable.

We look over two years.
jbbooks1
Take money from government and soon it takes control.
joelwiley
If the article is correct, they have been taking government money for 4 decades. How soon is 'soon', and what constitutes 'control'
CaptainFreedom
Not in Canada. The Liberals will give Bombardier the cash and allow the Beaudoins to continue to own the company. This seems wrong (and is) on the surface, however imaagine the boondoggle that would result if the Canadian government owned and managed Bombardier....eaghhh!
linbb
linbb -1
So just like I pointed out they are going to give them help which will in effect lower the price of the AC. Just like Airbust is getting from the EU to keep it in business.
canuck44
canuck44 5
We will need to see how this is structured before that declaration can be made. I agree they might get some help on a differential rate on the interest but if they are paying interest that will increase the price over not obtaining the note which would undoubtedly give a balloon payment. The differential with market is not likely to be more than 1% given the low Bank of Canada rates. If so we will not see the health of the program until that balloon is due.
wopri
Are there any large aircraft manufacturers that do not get help from governments? By the way, making up names is not a sign of a mature discourse.
clbea
Boeing and Airbus receive big help from Governments, and still.
raytoews
Ray Toews -3
I think they should destroy all the airplanes already built, burn the plans and fire all the staff.

Maybe keep the nose section of one of them for the museum.
joelwiley
And your reasoning for this is????
wopri
I suspect it's a reference to the Avro Arrow program that was killed in exactly this fashion by the Diefenbaker government. Probably Ray is not serious about this.
joelwiley
Thanks for that. As they say all politics are local. Being below 49N, I missed that, but we have our own down here.
clbea
Your’e a fan of F-16, well Bombardier is also a bombardier. :)

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