Quebec government funnels another $413 million to Airbus A220 program
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Hey there, time traveller!
This article was published 23/07/2024 (501 days ago), so information in it may no longer be current.
MIRABEL, QUE. – The Quebec government is injecting another $413 million into the Airbus A220 commercial jet program, formerly known as the C Series, in a bid to improve its return on investment.
The announcement Tuesday brings Quebec’s total investment in the program to more than $2 billion, but Quebec Premier François Legault insists the move is a “good deal.”
“It’s a lot of money, but at the same time, this is very strategic,” he said during a news conference at the Airbus assembly site in Mirabel, Que., northwest of Montreal. “We have been partners since the beginning.”
France-based Airbus is investing $1.2 billion in the program, and has guaranteed that two-thirds of the jobs involved in building the jets will remain in Quebec. The company currently employs 4,000 people in the province, including 3,500 involved with the production of the A220. The average salary of those jobs is $87,500, Legault said — well above the provincial average.
The investment maintains Quebec’s 25-per-cent share in the program and extends the timeline for Airbus to buy back its stake by five years, to 2035 from 2030.
The injection of funds follows a previous government investment of $380 million in 2022, after Airbus put in $1.1 billion. Former premier Philippe Couillard’s Liberal government funnelled $1.3 billion into Bombardier’s C Series program in 2015, before it was purchased by Airbus in 2018.
Economy Minister Pierre Fitzgibbon said he hopes the government will make back the money it’s put into the project since 2022, “and make some return on it.”
Benoît Schultz, president and CEO of Airbus Canada, said he hopes to sell 14 aircraft per month and achieve profitability by 2026. The program has recently been affected by a problem with engines made by American aerospace manufacturer Pratt & Whitney.
The A220 jet is assembled in Mirabel and Mobile, Ala., and Schultz said Airbus had delivered 28 planes by the end of June this year.
“The company may lose money right now, but this program is one of the best programs of Airbus,” Fitzgibbon said. “So far, the program is successful from a sales perspective … At the end of the day, the consumers like the product, and they buy it.”
This report by The Canadian Press was first published July 23, 2024.