More government support for Quebec aerospace industry

Bombardier-aeropsace-Quebec-government-supportAirbus-Air-Canada-Delta-Airlines-EDIWeekly

The Quebec government has moved once more to support the province’s aerospace sector, committing $250 million in direct aid toward expanding and diversifying the industry. Premier Philippe Couillard also promised an additional $260 million in loans and other financing arrangements. The investment is made with the expectation that it will generate up to $2.8 billion in spinoffs as Quebec’s nearly two hundred small and medium aerospace companies become “more international.” Approximately 40,000 people now work in aerospace in Quebec, and the industry has annual sales of $15.5 billion.

The crown jewel in Canada’s aerospace industry is, of course, Bombardier. Couillard called the company’s C Series aircraft, currently in development and recently given a major boost by large orders from Air Canada and Delta Airlines (though rival Airbus has said Bombardier offered the planes to Delta “for a song”), the most important project in Canada today. Whether that is “objectively” true as Couillard put it, or not, he expects Ottawa to contribute to the program. He has repeated frequently over the past several months that he expects Ottawa to dedicate the same energy and support to Quebec as was given to the auto industry in Ontario a few years ago.  His government has already put $1 billion into the C Series. Besides Bombardier, Quebec is home to Bell Helicopter, Pratt & Whitney Canada, and CAE, the full-flight simulator maker.

So far, the federal government’s support has been mostly verbal. Finance Minister Bill Morneau said in Japan at the G7 finance ministers’ meeting that aerospace, and Bombardier in particular, fit “right in our bull’s eye” when it comes to industries worthy of federal support. Morneau praised the industry for being highly innovative and having the potential to grow, adding that focusing on “world-leading companies and world-leading technologies” makes sense for the government. The prime minister has also praised the C Series aircraft.

Meanwhile, the federal government announced last week a relatively modest investment of just over $500,000 to support the aerospace and defence industry in western Canada. The money is to support the Aerospace Industries Association of Canada (AIAC) and its presence at a number of international trade shows. One of these, the 2016 Aerospace Defence & Security Expo, the largest such trade show in western Canada, will receive $75,000. These industry events are seen as “critical” to the sector as they provide opportunities for western Canadian companies to enter the international market.

Did you miss this?

Other Popular Stories

  • Terraton Initiative: "Carbon Negative": an innovative solution could remove 1 trillion tons of carbon dioxide from atmosphere
  • Demand for 100K engineers over next ten years in Canada
  • Exports, especially oil, driving Canada's growth: EDC
  • Magna International acquires German transmission giant
  • Volvo to Expand Production of XC40 SUV in Europe and China
  • Shed a tear for science? University researchers in Ireland harvest electricity from tears
  • Canadian Government should do more to have U.S. tarriffs removed say ministers in both Ontario and Quebec
  • TransCanada will use railroads if Keystone pipeline not approved
  • January manufacturing sales best ever: Statistics Canada
  • Slight drop in April manufacturing sales due to petroleum, aerospace
  • Cascade Aerospace named a Hercules heavy maintenance centre
  • Aerospace companies announce satellite, service contracts
  • Handheld device detects bacteria on food in real time
  • Researcher designs valve that could help power deep space flight
  • Siemens Canada, Manitoba Hydro sign $800 million contract
  • Builders urge Ontario to allow six-storey wooden structures
  • BC refinery close to financing deal
  • Manufacturing sales up in November, government scraps duties on imported food ingredients
  • Researchers Create Negative Mass Superconductor
  • New GO buses will be assembled in GTA
Scroll to Top