The sale of 75 aircraft of the C Series at the Delta airline is “very good news”. But the Trudeau government still expects a “solid business plan” Bombardier before proceeding to the application for financial assistance over $ 1 billion claimed by the company and the government Couillard.
For now, negotiations between Ottawa and Bombardier executives seem to abut a significant barrier. The federal government would like to see changes the structure of the multiple voting shares enabling the Beaudoin-Bombardier family to control the company. However, this request was rejected categorically. “Our multiple voting shares allow us to invest in the long term and [protect against] the dismantling of this company. We do not intend to change anything, “said Friday the executive president of Bombardier’s board of directors, Pierre Beaudoin.
Asked about this yesterday on the sidelines of the congress of the Quebec wing of the Liberal Party of Canada in Montreal, the Prime Minister Justin Trudeau was cautious, despite pressure by his Quebec counterpart Philippe Couillard.
“Listen, I do not want to negotiate in public. It is certain that the new buying from Delta, it is very good news for Bombardier. We have an exceptional aircraft to offer the world. For me, the aviation industry remains essential to Canada’s economic growth. This provides good jobs here in Quebec, but across the country. While we continue to negotiate with Bombardier to have a solid business plan, “Trudeau said.
This refusal of the Beaudoin-Bombardier family make concessions on the issue of share structure could it derail the negotiations to the point that Ottawa would remove any help? The federal Liberals from Quebec refuse to consider such a scenario, given the importance of the aerospace industry for the greater Montreal area, Quebec and across the country. “It is clear that we must find a way to help Bombardier,” says one. At the same time, MEPs argue that the federal government has an obligation to do homework well before authorizing such investment.
“Selling 75 aircraft to Delta Air Lines is very good news. But when selling these devices at a loss, this is not necessarily a viable business plan. Somebody, somewhere, willing to pay for these losses. For now, this is what we are asked to do, “do we summarized in the Liberal ranks.
The Globe and Mail reported Friday that Delta had obtained a significant reduction in the list price for the 75 devices. The carrier would pay each aircraft about 25 million, while the price is established catalog of 72 million – a 65% reduction.
Certainly, Bombardier executives and Prime Minister Philippe Couillard, argue that Quebec’s decision to invest more than $ 1 billion has been crucial to convince Delta to buy appliances. Investing roughly equivalent federal government would strengthen the confidence of potential buyers towards the C Series, according to Pierre Bellemare, CEO of Bombardier.
In the Liberal ranks, it also refuses to impose an artificial timetable. It also rejects comparisons between the game aid from Ottawa to the automotive sector in Ontario in the wake of the global economic crisis and the situation of Bombardier.
“These are two completely different things. First, there was a severe economic crisis. The Ontario government has invested, and it was coordinated with the US government. GM of the structure is also different. So we can not make comparisons, “says one.
Is there another way to support Bombardier’s activities than direct investment, as did Quebec? The federal government examine what the United States to support Boeing and what the countries of Europe to help the cause of Airbus. “We look at what is done elsewhere,” says one. Note however in passing that the Canadian government has not the same financial resources as the United States or European countries put together.
ELECTRIC TRAIN HAVING A GOOD EYE
The Trudeau government sees a good eye draft Caisse to equip the city with an electric train 24 stations that would serve Montreal, the airport, the North Shore and the South Shore. While in Montreal to attend the convention of the Quebec wing of the Liberal Party of Canada, Prime Minister Justin Trudeau argued that Ottawa is keenly interested in this project valued at 5.5 billion. “This is the kind of project in which we are eager to invest,” said the Prime Minister after delivering a speech to some 500 liberal activists. The Caisse announced two weeks ago that it plans to invest 3 billion to complete the project – which is currently the most ambitious on the drawing boards of a large Canadian city. The boss of the Caisse, Michael Sabia, said that the Government of Quebec and the federal government will be asked to finance the rest.