Posted on: 23 June 2016 by Mark Howells
Bombardier has entered into a definitive agreement for a previously announced $1 billion investment by the Government of Québec in a newly-created limited partnership, the C Series Aircraft Limited Partnership (CSALP), to which the assets, liabilities and obligations of the C Series aircraft programme will be transferred.
“We are delighted to officially welcome the Government of Québec as an equity partner in the C Series programme,” remarked Alain Bellemare, president and chief executive officer, Bombardier Inc. “We are grateful for the confidence the people and Government of Québec have in the C Series. Their investment will accelerate the momentum we’ve created, strengthen customer confidence in the aircraft and provide Bombardier with the financial flexibility needed to compete and win.”
The investment is expected to occur in two $500 million payments, the first on 30 June 2016 and the second on 1 September 2016. CSALP will eventually be 50.5%-owned by Bombardier and 49.5%-owned by the Government of Québec, through its mandatary, Investissement Québec.
Bombardier will maintain operational control of the C Series programme and consolidate its financial results. Bombardier Commercial Aircraft president Fred Cromer will also serve as president of CSALP, whose board of five directors will have three be proposed by Bombardier and two by the Government of Québec. Daniel Johnson will serve as chairman of the board.
The investment remains conditional upon the satisfaction of certain conditions. The $1 billion US investment will be used entirely for cash flow purposes of CSALP. As part of the agreement, the strategic, financial and operational headquarters for CSALP, along with the assembly, manufacturing, engineering services and research and development activities of CSALP, will remain in Québec for at least 20 years.