Bombardier CEO Alain Bellemare exits a Global 7000 jet at Bombardier in Montreal on Tuesday February 7, 2017.
ALLEN MCINNIS / MONTREAL GAZETTE
MONTREAL — The federal government says it will give Bombardier $372.5 million in repayable loans over four years to support the Global 7000 and CSeries aircraft projects.
Most of the money would go to the Global 7000 business aircraft program, which is scheduled to go into commercial service next year.
The rest would go to the CSeries passenger jet, which was mired in delays and cost overruns prior to entering commercial service last year.
Bombardier (TSX:BBD.B) has been appealing for US$1 billion in federal assistance since late 2015.
Last year, the company received a US$1-billion investment for the CSeries passenger jet program from the Quebec government in exchange for a 49.5-per-cent stake.
As of late November, Bombardier received at least 360 firm orders for the jets.
The federal assistance for the Montreal-based aerospace manufacturer could rile foreign competitors.
Brazil has said it would launch a trade challenge against Canada before the World Trade Organization over financial support for Bombardier, which competes with Brazilian-based Embraer. Bombardier said such a move would be without merit.
Brazil has complained about US$2.5 billion in investments in Bombardier, including money to “ensure the viability of the new CSeries aircraft and its placing on the market at artificially reduced prices.”
In December, Prime Minister Justin Trudeau said he was hopeful a deal with Bombardier could be reached before the spring federal budget, adding that all countries, including Brazil, help their aerospace sectors.
Bombardier has announced job cuts totalling 14,500 positions over the last two years in an effort to regain its financial footing.