Bombardier to get US$1 billion bailout from Quebec
Aircraft maker posts US$4.9B loss, provincial government to rescue CSeries.
TORONTO — Bombardier, the world’s third largest plane maker, says it will get a US$1 billion investment from the Quebec government and is reporting a US$4.9-billion loss for the third quarter, mostly tied to its CSeries and Learjet 85 aircraft programs.
Canada’s largest aerospace company said Thursday that Quebec agreed to buy 49.5 per cent of the program and acquire up to 200 million Bombardier shares. The investment will go toward the CSeries program, which is about two years behind schedule. Quebec committed to the project for at least 20 years.
Bombardier plans to sell a minority stake in the railroad unit to unidentified investors, with an announcement due soon. The Montreal-based has turned in operating results that were substantially below expectations, which had been already low.
© 2015 The Canadian Press