yyztpa2 wrote:Airbus Canada Limited Partnership has the Province of Quebec as a 25% minority owner. In 2023, Airbus has the rights to buy out that share.
A story now out indicates negotiations between the Quebec Government and Airbus are underway to extend the partnership with Quebec injecting a further $200M. The story suggests that if they don't, their share will be diluted.
https://www.journaldemontreal.com/2022/ ... la-cseries
The article as represented by Google Translate also suggests IQ's "initial investment of $ 1.3 billion is no longer worth a penny" and points to a September 2021 article I can't access titled "Government accountants believe that the $1.3 billion investment in the program no longer has any value". I'm not sure what basis they have to make such a claim. An earlier post seemed to suggest that if all the $1.3B was spent without the program increasing in value one could consider the investment to have zero value. At least that's what I think it was trying to say.
One would think if the 75/25 split is to be maintained, Airbus will need to invest another $600M to keep the program going. Either that, or they would face charges of taking advantage of Quebec's taxpayers. Airbus seems to prefer a 75/25 split. They themselves are owned 25% by their host governments, and this report makes it seem that they want to sustain that ratio for Airbus Canada. I think that's wise from the company point of view for the government to have significant "skin in the game", but not so much that they can dictate policy.
All this seems to be justifying BBD's statements when they sold the program that the business plan was no longer workable and more investment would be needed. When they left the program, Airbus paid them $591M and relieved them of the burden of investing another $700M in the program that it had been required to invest as a part of the original $1 deal ( ref: https://airwaysmag.com/airlines/bombard ... -aviation/ ).
It also points out that earlier investments were politically troublesome which suggests future ones will be as well.
Overall it is not unusual for an airplane program to consume lots of cash, but we really should stop thinking of the A220 program costing Airbus $1.
The program may also lose favor in the community if they have to keep going back to the taxpayers for more cash, which was a part of BBD's downfall.