The Canadian government has approved $372.5m in repayable programme contributions for Bombardier “to foster Canadian innovation and strengthen the aerospace sector”. The funding, which will be provided over a four-year period, amounts to only a fraction of the $1bn that the manufacturer had been lobbying for.

Navdeep Bains, Minister of Innovation, Science and Economic Development, said it would ensure that Canada has “a strong, stable and competitive aerospace industry, which is a major driver of economic activity and innovation across the country”.

The funding comes on top of an investment of $1bn by the government of Quebec, announced in June last year. That investment was specifically targeted at the C Series programme. It was channelled into a new entity, the C Series Aircraft Limited Partnership (CSALP), owned 50.5% by Bombardier and 49.5% by the government of Quebec.

The latest round of funding is aimed at research and development for the new Global 7000 business jet, via the Strategic Aerospace and Defence Initiative (SADI), as well as the C Series aircraft. The C Series entered commercial service in July 2016, while the Global 7000 is due to start deliveries next year.

In May 2005, Canada first announced that it would support the C Series with a $350m repayable contribution. In October 2016, the government announced an investment of up to $54m to support a Bombardier-led consortium under the Technology Demonstration Program. The consortium aims to develop state-of-the-art electric systems and advanced aerodynamic systems that will make the aircraft of the future more energy efficient, reliable and quiet.

Brazil has threatened to launch a trade challenge against Canada before the World Trade Organization over financial support for Bombardier, which competes with Brazil’s Embraer.