Canada federal government to grant $372.5 million loan to Bombardier
MONTREAL: The Canadian government provided a Can$372.5 million (US$282.7 million) loan to Bombardier, far less than the plane manufacturer had hoped to obtain as it seeks to resolve financial difficulties.
The four-year advance serves to support research and development for the Global 7000 business aircraft program and CSeries aircraft, said CEO Alain Bellemare.
After multiple delays and cost overruns for more than Can$5 billion in development, Bombardier delivered its first CS100 in June and its first CS300 late last year.
"I believe Bombardier is indeed back," said Navdeep Bains, minister of innovation and economic development.
Bombardier finally obtained federal government aid after restructuring several times and firing thousands of employees since late 2013, for both its aeronautics and rail divisions.
The Quebec government made a $1 billion investment in the firm's CSeries program starting in 2015 and sought a match from the federal government.
A Delta Air Lines order for 75 CSeries planes nearly a year ago boosted the plane-maker.
The government aid "is the right solution for innovation, jobs and long term competitiveness for the company," said Bains.
After a maiden flight of its ultra long-range Global 7000 -- its largest private jet -- Bombardier plans to market the plane starting in 2018, two years behind schedule.
The four-year advance serves to support research and development for the Global 7000 business aircraft program and CSeries aircraft, said CEO Alain Bellemare.
After multiple delays and cost overruns for more than Can$5 billion in development, Bombardier delivered its first CS100 in June and its first CS300 late last year.
"I believe Bombardier is indeed back," said Navdeep Bains, minister of innovation and economic development.
Bombardier finally obtained federal government aid after restructuring several times and firing thousands of employees since late 2013, for both its aeronautics and rail divisions.
The Quebec government made a $1 billion investment in the firm's CSeries program starting in 2015 and sought a match from the federal government.
A Delta Air Lines order for 75 CSeries planes nearly a year ago boosted the plane-maker.
The government aid "is the right solution for innovation, jobs and long term competitiveness for the company," said Bains.
After a maiden flight of its ultra long-range Global 7000 -- its largest private jet -- Bombardier plans to market the plane starting in 2018, two years behind schedule.
