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Bombardier: Quebec to make first $500M payment for CSeries June 30

The CSeries aircraft is two years behind schedule and has incurred about US$2 billion in cost overruns


 
Federal Transport Minister Marc Garneau speaks to staff at Bombardier's CS100 plant Friday, December 18, 2015 in Mirabel, Que. After years of delays and cost overruns, Bombardier's CSeries commercial aircraft has been certified by Canada's transportation regulator. THE CANADIAN PRESS/Ryan Remiorz

Federal Transport Minister Marc Garneau speaks to staff at Bombardier’s CS100 plant Friday, December 18, 2015. (Ryan Remiorz, CP)

MONTREAL — Bombardier Inc. and the Quebec government have reached a definitive agreement for the province to invest US$1 billion towards the CSeries passenger jet program.

The two sides have been working out details of the agreement since the plan was originally announced in October.

The Montreal-based company (TSX:BBD.B) says it expects to receive the money in two instalments of US$500 million each, with the first to be received by Bombardier on June 30 and the second on Sept. 1.

Bombardier says a final deal will be reached when certain customary conditions are met.

Once the Quebec government’s investment is complete, it will own 49.5 per cent of a new limited partnership with all the assets, liabilities and obligations of the CSeries aircraft program.

The CSeries aircraft is two years behind schedule and has incurred about US$2 billion in cost overruns. The first planes are slated to enter into service with Swiss Airlines in July.

Premier Philippe Couillard has said Quebec’s timely intervention in the CSeries commercial aircraft program was key for securing orders from Air Canada and Delta Air Lines.

 


 
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