Canada Lends Bombardier $173 Million

Aid is to help Bombardier deliver up to eight Q400 and CRJ900 aircraft to Sweden's Scandinavian Airlines

The Canadian government announced on August 5 a loan of US$173 million to Bombardier to help the company deliver up to eight Q400 and CRJ900 aircraft to Sweden's Scandinavian Airlines (SAS).

The funds are to be offered through the government agency Export Development Canada, Trade Minister Stockwell Day said. They are conditional on a firm sales agreement being reached between Bombardier and SAS.

Bombardier's relations with SAS briefly soured in October 2007 after the airline grounded its fleet of 27 Bombardier short haul Dash 8 Q400 aircraft following a series of accidents involving landing gear. Preliminary investigations pointed to parts corrosion, not design flaws.

The two companies eventually settled on compensation for SAS for problems with the aircrafts. SAS also planned to order new planes.

Copyright Agence France-Presse, 2009

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