Fresh Quebec cash injection in A220 program is ‘out of the question,’ Legault says

News provided by the Montreal Gazette – link to full story and updates

Quebec has no appetite for a fresh cash injection in the joint venture that builds the A220 jetliner, Premier François Legault said.

FRÉDÉRIC TOMESCO Updated: January 29, 2020

Quebec has no appetite for a fresh cash injection in the Airbus SE-led joint venture that builds the A220 jetliner at the former Bombardier Inc. factory in Mirabel, Premier François Legault said.

“It’s out of the question that we invest in this division,” Legault told reporters in Quebec City. He once again criticized the decision made by former Liberal premier Philippe Couillard to plough money into the aircraft program — formerly known as the C Series — instead of buying a stake in Bombardier.

Legault spoke a day after Economy Minister Pierre Fitzgibbon said Quebec was working with the companies to find ways of preserving aerospace jobs as well as the province’s US$1-billion investment in the A220. Fitzgibbon said he was hopeful of reaching a deal within about 10 days.

Bombardier is reassessing its ongoing involvement in the A220 venture. It vowed two weeks ago to disclose the amount of any write-down connected with the partnership when it reports financial results next month.

Quebec will need to write down the value of its own investment in the program, Legault said. He wouldn’t provide a figure, saying the government is still crunching the numbers.

In the meantime, Quebec is “following the file very closely,” the premier added. “We’re talking with the company, we’re talking with the Caisse de dépôt, we’re talking with eventual partners.”

With files from the Montreal Gazette’s Philip Authier