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Canada says it actively wants to help Bombardier
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) Más...Sort type: [Top] [Newest]
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
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.
We look over two years.
Take money from government and soon it takes control.
If the article is correct, they have been taking government money for 4 decades. How soon is 'soon', and what constitutes 'control'
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!
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.
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.