Canada due to make announcement on aid for Bombardier soon

Jetmaker plans to cut more than 1,000 jobs over next two years at Belfast operation

The Bombardier plant in Belfast: the company has been under financial pressure due to cost overruns on its new C Series jet. Photograph: Arthur Allison/Pacemaker

The Bombardier plant in Belfast: the company has been under financial pressure due to cost overruns on its new C Series jet. Photograph: Arthur Allison/Pacemaker

 

The Canadian government will ultimately do something to help struggling jetmaker Bombardier and expects to make an announcement on aid soon, according to a government official.

The official, who spoke on condition of anonymity, said the deal may still be delayed. The official did not specify the factors that could push back an announcement.

Quebec’s provincial government has committed 1 billion Canadian dollars (€680 million) for a minority stake in Bombardier’s C Series programme and wants the federal government to do the same.

Bombardier, which first approached the Canadian government in December, announced last month that it was to cut 1,080 jobs over the next two years at its Belfast operation, which employs 5,500 people.

Under pressure

Justin Trudeau

“We will answer when we have the right answer to give. We are taking our time in a deliberate and thoughtful way to make sure we’re doing the right thing in the interest of the Canadian industry,” Mr Trudeau said yesterday.

The government has “a responsibility towards taxpayers to get the opportunity cost right”, he said.

Mr Trudeau later reiterated his praise for the C Series jet, which has struggled to win orders from most of the world’s biggest carriers.

“The C Series aircraft has been lauded as an extraordinary airplane,” he said. “Really, it is more efficient – more fabulous in all ways – than just about any other plane on the market. Canadian aerospace and Bombardier itself has a bright future.”

Shares of Bombardier have plunged almost 50 per cent in the past year, dipping below C$1 last month as investors lost patience over delays and cost overruns in the jet project. – (Bloomberg )