Even if its initial investment of $ 1.3 billion is no longer worth a penny, Quebec will once again pump millions of taxpayer dollars to support the former C Series, learned The newspaper.
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According to sources consulted, Investissement Québec will invest more than $200 million in the limited partnership Airbus Canada, which designs the A220, formerly Bombardier’s C Series.
In recent days, the Minister of Economy, Innovation and Science, Pierre Fitzgibbon, who is pleading for aid to Airbus, presented the file to his colleagues in the Council of Ministers. A decision has already been taken in favor of the European aeronautical giant, we learned.
But, even if the CAQ sits at the top of the polls, the operation remains politically risky, because Quebecers all remember the millions of dollars swallowed up in the adventure of the Bombardier C Series, finally sold for a pittance. at Airbus.
Fitzgibbon likes this company
In an interview, Minister Fitzgibbon did not confirm the information, but he did not close the door to an investment and a possible announcement.
“Maybe, but honestly, as we speak, I can’t say yes to that, I can’t say no either. This is a file that has interested us since I arrived in office, ”he said.
“Of course there were failures, things that were not adequate […], but nevertheless, it’s a company that I really like and it’s a very, very important contribution to Quebec,” he continued.
Did Minister Fitzgibbon have to convince François Legault? The question is legitimate, because the Prime Minister did not want to know anything about aid to the former C Series a few months ago, at least publicly.
“We can’t be sure that this division will ever make a profit, so we’re not going to reinvest a cent in this division,” he said during a press scrum just before the pandemic.
Mr Legault had repeatedly denounced Philippe Couillard’s former government for investing in the C Series and not in Bombardier.
Airbus asked for help
Even today, the program remains in deficit. Airbus is trying to modify and speed up its production line in order to reach profitability in four years, i.e. in 2026.
“Of course it’s an important business. We are talking about almost 2,500 jobs here in Quebec, in Mirabel. The future is quite bright for the industry in general, but also for the A220”, indicated Minister Fitzgibbon.
The Quebec state still has 25% in the program and Airbus, 75%. However, due to the problems of the former C Series and the impact of the pandemic on aeronautics, Quebec’s participation no longer has any value, it was written in the financial statements of the Economic Development Fund. at the beginning of the year.
This upcoming announcement is not completely surprising, however. According to the registry of lobbyists consulted by The newspaper, Airbus has been talking to the Ministry of the Economy for several months and wishes to benefit from the aid program for the aeronautics sector set up by the government.
According to what is written, the company is trying to obtain funds (grants, loans or other) which “would be used to carry out research and development projects for the A220 aircraft”, and it wanted to “sustain its activities in Quebec”.
It is common knowledge that Airbus also wants to design a new plane, a stretched A220 of 180 passengers which could compete directly with the Boeing 737, the legendary American airliner.
With a new A220, the number of potential customers could increase, but this would require significant investment. Last year, there were 100 firm orders and letters of intent for the A220.
A few weeks ago, the American carrier Aviation Capital Group announced the purchase of 20 A220 aircraft assembled in Mirabel.
Soon more employees?
If Airbus is able to pick up the pace, it could hire up to 500 additional people at its Mirabel facilities. Currently, four devices are manufactured monthly in the north of Montreal.
The company’s goal is to increase the pace until the construction of 10 aircraft each month in Quebec.
The government has already defined the aeronautics sector as one of the most strategic for Quebec and specifically for the Montreal region.
Contacted by The newspaper, neither Investissement Québec nor Airbus wished to comment on the matter.
► Airbus expects to deliver a total of 600 aircraft during its fiscal year. For the first nine months of the year, sales increased by 17% to reach C$50.5 billion.
La C Series (A220) in a few dates
July 2008
Bombardier launches the C Series with financial aid of $117 million from Quebec and $350 million from Ottawa.
September 2013
The plane made its very first flight at Mirabel.
October 2015
The Liberal government of Philippe Couillard announces an investment of $1.3 billion in the C Series, giving a breath of fresh air to Bombardier, which was on the verge of bankruptcy.
July 2016
The C Series enters commercial service with a Swiss flight connecting Zurich to Paris.
October 2016
Ottawa announces $373 million in aid for Bombardier, including $124 million for the C Series.
October 2017
Bombardier and Quebec announce that they are ceding control of the C Series to Airbus for $1. The European giant will rename the A220 program.
September 2021
Government accountants believe that the $1.3 billion investment in the program no longer has any value.