Government of Canada and Bombardier announce significant investment to strengthen leadership in aerospace

Innovation, Science and Economic Development Canada

The Government of Canada is committed to keeping Canada at the forefront of global leadership in the aerospace sector. The aerospace industry is one of the most innovative industries in Canada, and it provides over 211,000 quality jobs for Canadians and $28 billion annually in GDP to Canada’s economy. 

That is why, today, the Government of Canada announced that it will provide $372.5 million in repayable contributions to Bombardier Inc. This funding will be provided over four years and will support thousands of good middle-class jobs, strengthen the long-term competitiveness of Bombardier and help to build the aircraft of the future.

Through its collaboration with Bombardier, the Government of Canada is investing in thousands of Canadians and hundreds of suppliers across the country. As the nation’s largest aerospace company, Bombardier supports thousands of jobs in design, engineering and manufacturing through its nation-wide supply chain of companies.

This initiative by the Government of Canada will fund research and development for the new Global 7000 business jet and ongoing activities related to the development of the company’s C Series aircraft.

The Government of Canada has a long-standing relationship with Bombardier, Canada’s biggest private sector investor in research and development activities. These activities strengthen the skills and knowledge of Canadians working in the aerospace sector, and they lead to new manufacturing platforms that position Canadians working in the sector for the jobs of tomorrow. The resulting benefits enable Canada to maintain a competitive position in the global supply chain that forms the aerospace sector.

Quotes

“This contribution from the Government of Canada will secure the highly skilled, well-paying jobs for middle-class Canadians who work in the aerospace sector. It will also ensure that Canada has a strong, stable and competitive aerospace industry, which is a major driver of economic activity and innovation across the country. Bombardier plays a vital role, both as an anchor employer and an innovation leader. The Government of Canada is proud to invest in research and development activities that secure Canadian jobs, while enabling Bombardier to grow as a globally competitive company for years to come.”

– The Honourable Navdeep Bains, Minister of Innovation, Science and Economic Development

“We welcome the continuing partnership with the Canadian government. The repayable contributions announced today will help to ensure that Canada remains at the centre of Bombardier’s research and development activities, which are focused on developing the most efficient, reliable and environmentally friendly aircraft in the world. While we compete globally, we are proud of our Canadian home, our heritage and our position as one of Canada’s leading high-technology manufacturers and employers.”

– Alain Bellemare, CEO, Bombardier Inc.

Quick facts

• Aerospace leads all manufacturing industries in research and development. It accounts for nearly one-third of all research and development activity in Canada’s manufacturing sector, which translates to $28 billion of economic activity every year. Canada’s aerospace sector employs, directly and indirectly, 211,000 people across the country.
• Aerospace companies are Canada’s leading exporters in terms of trade intensity at twice that of the manufacturing average. Close to 80 percent of aerospace manufacturing was exported in 2015.
• The repayable contribution to the Global 7000 jet will be made through the Strategic Aerospace and Defence Initiative (SADI). This program supports specific research and development activities that help aerospace and defence companies develop new technologies.
• Another portion of this investment will be made through the government’s existing contribution agreements with Bombardier. This contribution will support ongoing activities related to the development of the company’s C Series aircraft. The C Series is an example of Canadian innovation and clean technology that is the future of the aerospace industry.
• In May 2005, Canada first announced that it would support the C Series with a $350-million repayable contribution.
• On October 11, 2016, the government announced an investment of up to $54 million to support a Bombardier-led consortium under the Technology Demonstration Program. The consortium will 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.