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UPDATE 1-Bombardier jet order does not change Ottawa's stance on aid -source

Published 2016-04-28, 12:22 p/m
© Reuters.  UPDATE 1-Bombardier jet order does not change Ottawa's stance on aid -source
DAL
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By David Ljunggren
OTTAWA, April 28 (Reuters) - A big order by Delta Airlines (NYSE:DAL)
Inc DAL.N for Bombardier Inc BBDb.TO jets does not change
the Canadian government's stance on whether to meet the plane
maker's request for financial aid, a source close to the matter
said on Thursday.
The Canadian government's focus has always been on the
long-term viability of the Quebec-based company and Canada's
aerospace sector, not on a single deal, said the source, who
requested anonymity because of the sensitivity of the matter.
Bombardier wants $1 billion in federal aid to help support
its new CSeries jet. Sources say the two sides are far apart on
matters such as corporate governance and the extent of Ottawa's
involvement in running the company.
"It's always been about the long term, not six months to six
months, or one deal or another ... a single deal does not a
company make or break," the source said.
"Everyone understands ... the stakes are the same in terms
of long-term viability of the company and long-term viability of
the sector."
Bombardier Chief Executive Officer Alain Bellemare said
earlier on Thursday that the Quebec-based company had not yet
found the right elements for a deal with Ottawa but remained
hopeful it could come to an agreement.
Bellemare spoke after Delta announced an order for 75 CS100
planes, worth an estimated $5.6 billion based on the list price,
the first from a major U.S. airline for the CSeries jet.

Federal Innovation Minister Navdeep Bains, who is in charge
of the Bombardier matter, congratulated the company in a
statement and said talks on aid were continuing. He gave no
details.
Ottawa and Bombardier are committed to ensuring that any aid
deal would comply with World Trade Organization restrictions on
subsidies, the source who spoke on condition of anonymity said.
Brazilian plane maker Embraer SA EMBR3.SA has already
expressed concern about a separate $1 billion aid deal that the
Canadian province of Quebec struck with Bombardier last year.

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