Bombardier confirmed today (23rd June) that it has entered into a definitive agreement for the previously announced $1bn investment by the Government of Quebec in a newly created limited partnership, the CSeries Aircraft Limited Partnership (CSALP), to which the assets, liabilities and obligations of the CSeries aircraft program will be transferred.
Bombardier CEO Alain Bellemare said the investment would “accelerate the momentum we’ve created, strengthen customer confidence in the aircraft and provide Bombardier with the financial flexibility needed to compete and win.”
The disbursement of the investment is expected to occur in two $500m payments, on 30th June 2016 and 1st September 2016. Upon completion of the investment, the CSALP will be 50.5%-owned by Bombardier and 49.5%-owned by the Government of Quebec, through its mandatary, Investissement Quebec.
Bombardier will maintain operational control of the CSeries programme and consolidate its financial results. Fred Cromer will serve as President of the CSALP, and continue in his current role.
The Board of Directors of CSALP will consist of five directors, three of whom will be proposed by Bombardier and two by the Government of Quebec. Daniel Johnson will serve as chairman of the Board of Directors of the CSALP.
The investment was previously approved by Bombardier’s Board of Directors and the Cabinet of the Government of Quebec and remains conditional upon the satisfaction of other customary conditions.
Meanwhile, Bombardier continues to negotiate with the Federal government for an additional $1bn in funding.