Canadian aerospace giant Bombardier and Quebec have reached a definitive agreement for the province to invest US$1 billion towards the Montreal-based company’s troubled CSeries passenger jet program.
When the deal is finalized, Quebec will own 49.5 per cent of a new limited partnership with all the assets, liabilities and obligations of the CSeries aircraft program.
The Bombardier and Beaudoin families, who who run Bombardier, are attempting to work out a similar deal with the federal government.
However, Ottawa is said to be insisting that the company do away with the dual-class share structure that allows the families to maintain control with only a minority stake.
The families are balking and negotiations are reported to be at a standstill
Bombardier shares have soared this year, bolstered by an order from Delta Airlines, which bought 75 planes this spring with an option to purchase 50 more.
In February, Air Canada announced a letter of intent to buy 45 CS300 jets with options for 30 more.
But the CSeries aircraft is two years behind schedule and has incurred about US$2 billion in cost overruns.
The first CSeries planes are slated to enter into service with Swiss Airlines next month.
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