Mark Collins – Canadian Election: Bombardier Nightmare for Conservative Government? Part 2

Further to this post, not unless the province acts before the October 19 vote and demands the feds pony up too:

Bombardier can count on Quebec for financial aid, Premier Philippe Couillard says

Bombardier Inc., draining cash amid delays on its marquee CSeries jetliner, can count on Quebec’s provincial government if the planemaker needs financial assistance, Premier Philippe Couillard said.

Even with the shares plunging 62 per cent this year and the CSeries $2 billion over budget, Bombardier’s central role in Quebec’s aerospace industry makes it a “huge asset” worthy of supporting, Couillard said.

“If they need something we will be ready to help them — not only because of the company itself, but the whole impact on the economy in Montreal and the aeronautical cluster,” the premier said Monday in an interview at Bloomberg headquarters in New York. The industry employs more than 41,000 people in the province…

Certification tests of the CS100 – the smaller of two variants of the CSeries family [Bombardier webpage here] – are more than 88 per cent complete, Bombardier said on Friday. The plane is on schedule for entry into service in the first half of 2016…

Couillard declined to elaborate on specific forms of assistance that Quebec might provide. In the past, government-owned agency Investissement Québec has provided such support as loan guarantees for foreign buyers of Bombardier aircraft.

“We’ve always been at the side of Bombardier,” he said. “If they ask, we will always be there.”

Et le fédéral?  Another aspect of the Bombardier equation:

Bombardier CSeries Jetliner Being Done in by Cheap Oil?

Mark Collins, a prolific Ottawa blogger, is a Fellow at the Canadian Global Affairs Institute; he tweets @Mark3Ds


2 thoughts on “Mark Collins – Canadian Election: Bombardier Nightmare for Conservative Government? Part 2”

  1. This looks serious–not just rail:

    “Exclusive: Bombardier seeking investors for all business units – sources

    Canada’s Bombardier Inc (BBDb.TO) is exploring the sale of a stake in any of its business areas, not just its rail unit, to ensure it can finish development of its delayed CSeries jet, according to four sources familiar with the situation.

    The Montreal-based company has hired investment bankers to look at a variety of financing options, the sources said, including selling aerospace or rail assets in full or in part, forming joint ventures or bringing in private equity investors.One source familiar with the company’s thinking said Bombardier hoped to secure some additional source of cash, through the sale of a business unit or another arrangement, perhaps with a Canadian government, before its third-quarter earnings report on Oct. 29 [after Oct. 19 election].

    Two of the sources said Bombardier’s board was expected to meet in the next few days, but it was not immediately clear what was on the agenda.

    A banking source said the company is not desperate for cash but wants to be proactive and shore up its stock, which has dropped more than 50 percent in the last year as it pushes to bring the new CSeries jet into service, years late and billions over budget.

    If Bombardier announces a financing deal in the coming weeks, it may surprise some investors, coming less than a year after the company’s last multi-billion dollar cash infusion. In February, Bombardier raised C$1.1 billion in equity and $2.25 billion in debt…”

    Mark Collins

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