Quebec will remain a shareholder in the program until at least 2035.
Quebec is investing an additional US$300 million to help Airbus SE ramp up production of its narrow-body aircraft, Premier François Legault announced Tuesday.
Airbus will also invest US$900 million in the A220 program, formerly known as the Bombardier CSeries.
The provincial government put in another $300 million in 2022 and its ownership is now 25 per cent. As of last year, the value of that stake had fallen to about $300 million — effectively wiping out the original investment.
Airbus has the A220 won’t be profitable until 2026, a projection that depends on the manufacturer’s ability to raise output to 14 jets a month between its factories in Mirabel and in Mobile, Alabama.
The Quebec government is topping up its funding in order to protect the value of its investment and to extend the 2030 deadline by which Airbus would otherwise be able to buy back its minority stake. With this deal, the government will remain a shareholder until at least 2035.
“Today, we are consolidating the presence of Airbus, an aerospace giant, in a sector that creates enormous wealth for our nation,” Legault said in a statement. The multinational currently has 4,000 employees in Quebec, including 3,500 in the production of the A220s.
The government is betting on a better return if it gives Airbus more time to turn a profit from the A220.
Presse Canadienne contributed to this report.