Yesterday, the governments of Canada and its Quebec province finalized plans announced earlier this year to pump more than C$2 billion in direct grants and loans into the country’s aerospace sector, with some well-known OEMs, including Pratt & Whitney, Bell, and CAE, primed to receive up to $685 million. Canadian Prime Minister Justin Trudeau said the aid was part of the country’s “strategic investments” to promote a green economy and assist in the “profound transformation” of the nation’s aerospace industry, which supports 235,000 direct and indirect jobs.
Funds to be provided include nearly $70 million to Pratt & Whitney Canada to support ongoing work for a $163 million hybrid-electric aircraft engine propulsion project; $275 million for Bell Textron Canada for the Viridis hybrid-electric helicopter technology; and $340 million for CAE to acquire electric training aircraft and implement a global R&D program encompassing digital technology, electric aviation, and health care over the next five years.
Smaller aerospace firms would also benefit. Trudeau concurrently announced the launch of the Aerospace Regional Recovery Initiative (ARRI) through a federal investment of $250 million over three years. The ARRI is designed to provide funding to small and medium-sized businesses and organizations in the aerospace sector “to help them become cleaner, more innovative, and more productive,” according to a statement from the Prime Minister’s office.