Recently, Bombardier Inc. has been in the news for being in financial trouble due to their delay in production and development of the new Cseries. Bombardier states that the Cseries would consume 20% less fuel per trip than its competitors.

The company does not have enough money to finish its development and production, which is the reason why the Quebec government wants to bailout the company. The company contributes to 2% of Quebec’s GDP and gives employment to a large number of its citizens. The Quebec government has confirmed the company a bailout amount of $1 billion and has also asked the Central government to step in.

As the new Liberal Government has already begun working, the company is expecting a lot from them. Justin Trudeau recently said, When the Canadian government decides whether to give aid to aircraft maker Bombardier Inc., it will take into account any possible trade challenge that might arise as a result.

Bombardiers troubles do not seem to end as one of its customers, Porter Airlines ordered a dozen of the new C-series on the condition that it would be allowed to fly to the Billy Bishop Toronto City Airport. The Transport Minister recently said that it would not allow passenger flights to fly out of that airport.

Another analysis shows that Bombardier would lose $32 million for each Cseries built in 2016-17.

According to me, the Government should properly analyse before investing into Bombardier and also know what could happen if they did so because the company’s management does not seem very stable. The decision will be very hard as Bombardier contributes a lot to the national economy and also to the Industry as a whole.

Image Source:

http://www.ainonline.com/sites/default/files/uploads/cseries_web.jpg