Bombardier Inc. is in talks with the new Canadian government to win further assistance to finish up its C-Series commercial jet program.
This is a program which the company says will be profitable by 2020 however, at this point it is already almost two years behind schedule, billions of dollars over budget and so far has Bombardier with over $9b (USD) in debt.
The Quebec government has already said it would help out and invest $1b (USD) in the CSeries program in return for a 49.5% stake.
Now the aerospace giant is asking the federal government to help it out too which means using Canadian tax dollars. However, Prime Minister Justin Trudeau said it would base a decision on business as opposed to emotion or politics. It is thought that the deal would have to benefit the economy for it to be beneficial but without the company in play it could mean thousands of job losses.
Alain Bellemare Chief Executive of Bombardier told Reuters at an aviation industry conference in Las Vegas they had been in discussion with the government regarding participation and financing investment.
“It is still in the early stage so I wouldn’t want to speculate more than that.”
The company also plans to gain around another $1b (USD) by selling its minority stake in the rail division, Bombardier Transportation. It is also thought that the Ottawa government may also contribute.
However is it over-reaching at this point? The Quebec-based company has only received 243 firm orders for the CSeries when its target was 300 before 2016. With lower figures it’s hard to see how Bombardier will be making such profit anytime soon.
“There are many pieces to this puzzle so 2020 is a good time frame.”
The company is planning an investor event in New York at the end of the month where it is thought they focus on operations and financial performance.