The Liberal government is continuing to negotiate with Bombardier to establish the 'right business case' for federal investment in the company, Prime Minister Justin Trudeau said in Montreal Saturday.
Trudeau praised the aircraft manufacturer's CSeries jets, saying he was pleased with the sale of 75 aircrafts to Delta Air Lines. He praised it as he noted the importance of the aerospace industry in Canada.
Trudeau did not, however, provide any further details on whether Ottawa would grant the company's request for federal funding.
"Obviously the Delta purchase is great news for Bombardier. It's great news for the Canadian aerospace industry. I believe that this is an exceptional airplane that companies around the world are going to recognize and participate in," he said.
He commented on the issue following a speech he gave to the biennial convention of the Liberal party's Quebec wing in Montreal.
The Quebec government has promised US$1 billion of public money for Bombardier and the company is seeking a similar sum from Ottawa.
Premier Philippe Couillard has called on the Trudeau government to do its part after the announcement earlier this week that Delta had placed an order with the company for 75 CS100 aircraft with options for an additional 50 planes.
Trudeau said the federal government is still studying at and won't negotiate in public.
"That's why we're in engaged negotiations with Bombardier and have been for quite a while around the best business case for Canada to invest," he said.
The chair of Bombardier’s board of directors told company shareholders Friday it had no intention of changing the voting structure of the company, which keeps the Beaudoin-Bombardier family in control.
Aviation analyst Karl Moore believes if the family had given up control, the C-Series might never have come to fruition.
“If this was a typical company, the CEO would have killed it 3-4 years ago,” said Moore. “Now maybe some would argue that would have been a better decision, but at this point the plane is built, here in Montreal. Let's take full advantage of that.”
Aaron Wudrick of the Canadian Taxpayers Federationsaid now that Bombardier has a deal with Delta, it should not receive federal money.
“There are dozens of other industries that are important industries in this country.They don't receive this type of preferential treatment,” he said.
Still Quebec's Liberal MPs hope a deal can be struck.
“We believe it's an important industry that employs many workers,” said MP and cabinet minister Melanie Joly.
“Every Quebec MP and certainly a lot of the MPs in the national caucus have pushed for stable financing,” added Liberal MP Marc Miller.
It must be palatable to taxpayers, said Francois Phillipe-Champagne, MP for St. Maurice-Champlain.
“If you invest their money, people expect you do it after you've done your homework. That's what we're doing,” he said.
With a report from The Canadian Press
