Story ID: GPcseriesquebec06232016
Bombardier Consummates C Series Partnership with Quebec
By: Gregory Polek
Caption: First tranche of $1 billion investment to arrive on June 30
Word Count: 250
Bombardier has reached a definitive agreement for the previously announced US$1 billion investment by the Government of Québec in a newly created entity called the C Series Aircraft Limited Partnership (CSALP), the company said Thursday. The announcement follows some eight months of detailed negotiations over the deal, which calls for the disbursement of a $500 million investment tranche on June 30 and an equal amount on September 1. When complete, the investment will give the province of Quebec a 49.5-percent share in the CSALP while Bombardier continues to own a controlling stake. Bombardier therefore maintains operational control of the C Series program. Fred Cromer will serve as president of the CSALP and continue in his current role as head of Bombardier Commercial Aircraft.

“We are delighted to officially welcome the Government of Québec as an equity partner in the C Series program,” said Bombardier president and CEO Alain Bellemare. “We are grateful for the confidence the people and Government of Québec have in the C Series. Their investment will accelerate the momentum we've created, strengthen customer confidence in the aircraft and provide Bombardier with the financial flexibility needed to compete and win.”

Under the terms of the agreement, the CSALP headquarters along with C Series assembly, manufacturing, engineering services of research and development activities must remain in Quebec for at least 20 years.

The CSALP board will consist of five directors, three proposed by Bombardier and two by the Government of Québec.