Proposed Bombardier bailout will cut its stake in CSeries project

Washington

A PROPOSED Canadian government bailout of Bombardier Inc's new CSeries jet manufacturing programme would reduce the company's stake in the money-losing aircraft, taking it off the plane maker's books and boosting results in the short term, two sources familiar with the matter said.

The federal government is considering a deal that would give Canada, the Quebec government and Bombardier each a one-third stake in the CSeries, which would be carved out as a separate joint venture with its own board, said the sources who spoke on condition of anonymity because the talks are confidential. Currently, Bombardier controls 50.5 per cent of the CSeries and Quebec 49.5 per cent.