(Montreal) Quebec's $ 1 billion investment in the A220 – Bombardier's ex-C series – has taken a major dive since the start of the year and is worth about five times less. which was originally renewed in 2015.
Posted September 29, 2020 at 3:33 PM
Taking into account the impact of the COVID-19 pandemic, the value of the investment fluctuated in a range from 204 million US to 231 million US on March 31, we can read in the Fund Development's financial statements, which Tuesday afternoon in the National Assembly were submitted.
"This situation presents a significant risk to the possibility that the Fund will recover the value of its investment on January 1, 2026 (when Airbus can proceed with the acquisition)," it says.
It is recalled that the health crisis caused the closure of many international borders, paralyzing the commercial aviation sector and thus causing a "loss of value. Sustainable."
Via Investissement Québec (IQ), the state has since February 25% of acquired the A220, as Bombardier left the adventure in the wake of his reorientation to aircraft business. Following the transaction, the Legault government slashed the value of this commitment.
Last February, Bombardier announced that it would close the program, which has since controlled by Airbus in July 2018. The European giant's participation had risen to 75%, while that of Quebec State had risen from 16% to 25% with no additional resources.
Airbus will also take Quebec's stake. in 2026, three years later than expected in the original agreement.
"The estimates and their underlying assumptions are revised and the impact of any changes will be taken into account, ”the Fund's financial statements read.
Finally, in June, Prime Minister François Legault had already set the table by suggesting that the entire amount injected by Philippe Couillard's liberal government in 2015 "should be written off". The day after this statement, the Minister of Economy, Pierre Fitzgibbon, tried to calm things down by reminding that we won't have an idea of the amount that will be recovered until 2026.
In the spring, Airbus 350 announced temporary layoffs at its Mirabel facilities in the Laurentians, where the aircraft is being assembled. About a hundred people have since been recalled. However, due to the current circumstances, the aircraft manufacturer has decided to postpone the rate increase until next year, which will keep the production rate at four aircraft per month.