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Canada to announce aid package for Bombardier: source

Wednesday, February 8, 2017 - 07:30

[OTTAWA] The Canadian government will announce an aid package for Bombardier Inc later on Tuesday, though a source familiar with the matter said the amount will be far less than the plane-maker had requested.

Canadian Innovation Minister Navdeep Bains was scheduled to make an aerospace-related announcement at 6.30pm ET (2330 GMT) on Tuesday at the headquarters of Bombardier.

The source said Bombardier would get C$372 million (S$400 million) in repayable loans.

French-language public broadcaster Radio-Canada said just one-third of the amount would go to Bombardier's new C-Series passenger jet, with the rest going to the Global 7000 business jet.

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In late 2015, Bombardier asked the federal government to inject US$1 billion into the C-Series. Negotiations dragged on for more than a year as cabinet ministers outlined concessions they wanted the firm to make, such as changing its dual class governing structure.

Government officials declined to comment when asked about the report. Bombardier is now in a better position financially than when it initially asked Ottawa to match US$1 billion in aid from the province of Quebec, where Bombardier is headquartered.

REUTERS

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