MONTREAL - To help its fledgling CSeries jetliner program get off the ground after the Canadian company posted a US$4.9 billion third quarter loss, Quebec announced a $1 billion investment in manufacturer Bombardier Inc. (IW 1000/315) on Oct. 29.
The funding is designed to soothe investor fears about bringing the first all-new medium-range passenger jet in 25 years to market as costs of the CSeries skyrocket amid development delays.
"This partnership comes at a pivotal time, with the C Series on the verge of certification," chief executive Alain Bellemare said.
"The market is there, our leadership is in place, we have the best product and with the support of the government, we are ready to make this aircraft a commercial success."
Entering the CSeries planes into commercial service and going head to head with the workhorses of the aviation market -- the Airbus A320 and Boeing 737 -- has been delayed by two years.
The jetliners should carry their first passengers for Lufthansa subsidiary Swiss in the middle of next year.
Quebec Minister of the Economy Jacques Daoust said the Canadian province receives a 49.5% stake in a limited partnership formed with Bombardier to complete the CSeries program, and a 20-year commitment to keep Bombardier's operations in Quebec.
The deal also includes the transfer to the new limited partnership of 1,700 employees, vendor contracts, and clients along with the assets and intellectual property required to continue the design, manufacturing, and marketing of the twin-engine CS100 and CS300 planes.
Bombardier, meanwhile, continues to search for investment in its rail business.
Bombardier's third quarter losses were mainly attributable to the CSeries and the discontinued Learjet 85 programs following a softening of business jet sales.
Copyright Agence France-Presse, 2015