Quebec government proposes curbing Bombardier’s control over jet programs
A proposed bailout of aircraft maker Bombardier Inc could give the Canadian and Quebec governments control of a separate board for the new C Series jet program, eroding the influence of the company’s founding family, two sources familiar with the matter said.
Bombardier has struggled to launch the C Series, with years of delays and cost overruns roiling the Montreal-based company. It wrote down the value of the 100-150 aircraft program in October, sold a stake in its rail business to Quebec’s pension fund and got a $1-billion lifeline from the Quebec government.
The proposal from the Quebec government would give it two seats and the federal government two seats – provided the latter matched the province’s $1-billion invested in the company – on a seven-person board for the C Series program. Bombardier itself would only be able to nominate three of the seats, putting the company’s representatives in a minority, one of the sources said. | READ MORE