Bombardier gets final installment of Quebec’s $1B for CSeries
Aerospace manufacturer till waiting on word on federal funding of $1 billion.
MONTREAL — Bombardier has received the final installment of Quebec’s US$1-billion investment in the company’s CSeries commercial jet program.
The Montreal-based company announced on June 23 that the province would own 49.5% of a new limited partnership with all the assets, liabilities and obligations of the CSeries aircraft program, including larger versions of the plane beyond the CS100 and CS300 should they be developed.
Bombardier received the first $500-million installment of the provincial investment a week later on June 30, providing the company with funds as it builds the CSeries planes ordered by airlines and other customers.
As a result of the final payment, completed on Sept. 1 as planned, the province’s Investissement Quebec received warrants that are exchangeable for 50 million Bombardier class B shares.
Quebec’s financial support comes as the one year anniversary approaches on Bombardier’s request to Ottawa for US$1 billion of funding.
Ottawa has reportedly pushed Bombardier to change its voting structure, something the founding family that controls the company through multiple voting shares has said it has no intention of doing.
Bombardier said it’s not disappointed that discussions have taken so long.
“We always knew these discussions were complex and they were going to take some time and we understand it’s important for both parties to find a winning solution so we’re focusing on that,” said spokesman Simon Letendre.
The delivery of the first CS100 to Swiss International Air Lines was made at the end of June, followed by a second in mid-August.
Bombardier has received 370 firm orders for the CS100 and the larger CS300 with up to 160 seats, plus 380 options and expressions of interest.
The first CS300 plane is slated to be delivered to airBaltic of Latvia later this year.
The CSeries program is 2 1/2 years behind schedule and at least US$2 billion above cost estimates but Bombardier says its size and fuel efficiency will enable it to operate on routes that were previously not profitable for airlines.