By Ken Pole | October 17, 2017 Estimated reading time 2 minutes, 41 seconds.
The federal government seems unconcerned that the Airbus acquisition of a majority stake in Bombardier’s C Series program sets the stage for the European giant to have complete control of the Canadian-designed aircraft.
But Innovation, Science and Economic Development minister Navdeep Bains is dismissing suggestions that production and intellectual property would be moved away from Bombardier’s Montreal facilities.
Having previously stated that the government would be reviewing the deal–as required by law to prove net benefit to Canada–Bains was asked Oct. 17 about an Airbus official’s statement that complete control is “the end game” for the European consortium, that “over time, we take 100 per cent.”
He acknowledged to reporters outside the House of Commons that the initial 51 per cent stake is only a starting point.
“Over the certain period of time, they will take complete ownership,” he said. However, Bains contended that what is really important is that the aircraft will continue to be built in Montreal.
“This is a made-in-Canada plane with Canadian intellectual property, with Canadian know-how,” he continued. “It’s a point of pride for Canadians, and, therefore, the final assembly will be done in Canada.”
On the possibility that all production and related technologies might be transferred, possibly to the Airbus plant in Alabama, he said that is part of the legislated review process.
“Those are the assurances we’re going to look for. We’re going to look for long-term production guarantees in Canada.”
As for some $470 million in government financial support for Bombardier to date, “I’m confident . . . that those amounts will be repaid.” Bains noted that 20 to 25 years would be a reasonable timeline for repayment.
Bains also expects the deal to create more employment in Canada. “This is production for the next few decades,” he said.
The global market forecast in the C Series class of some 6,000 aircraft over the next several decades, “really bodes well for more market access, more customers [and] more jobs–and that’s really good for Canada.”
Well it’s a better outcome than the Avro Arrow- for sure, but it saddens me that our country was on the cusp of leading the world in an aviation niche and we couldn’t get it to market. The airplane is outstanding and it would have dominated the 100-130 single aisle, mid range sector – neither Boeing or Airbus had anything like it in development.