Why Ottawa will spend $1B to prop up Bombardier: Olive - News Summed Up

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Why Ottawa will spend $1B to prop up Bombardier: Olive


The next-generation CRJ family, the C Series, was a dicey proposition from the start, when it was announced in 2008. A standalone Bombardier Aerospace would be forced to succeed, because it no longer has a giant rail business to fall back on. Bombardier needs to build a C Series plane profitably at a lower price tag of about $25 million apiece. Hundreds of cities and regional governments that are customers for Bombardier’s rail products were effectively insolvent. But the negotiations between Ottawa and Bombardier over the summer are also an opportunity to think about turning Bombardier into a “pure play” aerospace firm, by spinning off the rail division.


Source: thestar July 09, 2016 03:56 UTC



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