Bombardier exits commercial plane business in lieu of debts
Bombardier has lost US$1.6 billion according to a report of 2019. The Quebec-based aerospace company announced on Thursday that it will be leaving the commercial aviation business.
This comes after years of government subsidies in the hundreds of millions of dollars, and the blocking of disclosure of how much they’re actually receiving in taxpayer money, as reported by Blacklock’s Reporter.
The Premier of Quebec has expressed his concern of Prime Minister Trudeau’s handling of the anti-pipeline protestors at the National Assembly, Tuesday.
“[Mr. Trudeau] wants it to be done in peace. We agree with that, but there must be results and, for the moment, the situation has become very dramatic for the Quebec economy,” said Mr. Legault told the press. The federal government must resolve the crisis in the short term, in “the next few days,” he said otherwise the situation will only get worse.
In particular, the Premier of Quebec says he is worried that the Port of Montreal will no longer be able to receive new goods because there will be no space to store them. Legault also expressed concerns that stores may soon start to run out of certain items according to Le Journal de Quebec.
“We are losing control. I don’t want to fall back into the propane crisis with the farmers, I don’t want people to be unable to take off from planes because there is no more fuel,” said François Legault.
Justin Trudeau has been the subject of much criticism for being abroad while the country was at an impasse. Trudeau has stated that he would like all parties involved to remain “patient” until a peaceful resolution can be reached.
The Minister of Indigenous Services Marc Miller and the Mohawks of Tyendinaga, Ontario held a meeting at a local community centre for many hours although they have not released much details on what their conversations entailed.
Bombardier Inc. has announced that it will be selling its rail-building unit to the French-based Alstom SA. The sale marks Bombardier’s departure from the rail business.
Alstom announced plans to secure the deal with Bombardier and major shareholder Caisse de depot et placement du Quebec—a deal worth roughly $9 billion in stock and cash.
“I’m very proud to announce the acquisition of Bombardier Transportation, which is a unique opportunity to strengthen our global position on the booming mobility market,” Henri Poupart-Lafarge, chairman and CEO of Alstom, said in a news release.
“This acquisition will improve our global reach and our ability to respond to the ever-increasing need for sustainable mobility.”
The purchase is an important one for Alstom. In a market with competitors such as the Chinese-government owned CRRC, Alstom say they will be focusing on “further develop[ing] its presence in Quebec, Canada,” with plans for Montreal to become the headquarters for Alstom in North and South America.
Alstom also plans on establishing a centre of excellence for design and engineering, along with other high-tech research and development facilities.
“Alstom is committed to recovering Bombardier Transportation’s full operational and profitability potential with the objective of restoring project execution and margin towards standard level,” the press release reads.
This comes less than a week after Bombardier announced it was exiting the commercial plane business as well. The Trudeau government is not trying to retrieve a $372 million interest-free loan given to Bombardier in 2017, despite the company selling of core parts of its business.
The Trudeau government has said that they will not revoke $372.5 million that they gave to Bombardier, even after the corporation said it is leaving commercial aviation, according to Blacklock’s Reporter.
The Liberal Minister for Industry Navdeep Bains said in a statement that “Our government has been steadfast in its support for the Canadian aerospace industry and its workers … we will continue to engage with all relevant parties to ensure that previous commitments are honoured.”
The Trudeau government gave an intrest-free loan of $372.5 million to Bombardier in 2017 to help with their production of the C-series aircraft. Soon after this, Bombardier cut 14,500 jobs, sold a majority of the C-series aircraft shares, and moved the production of the aircraft to Alabama.
Despite the huge redundancies, Bombardier executives saw it fit to grant themselves a 48 percent pay raise for six senior managers. These raises, however, were soon revoked after protests and condemnation.
Despite government support, Bombardier managed to lose $1.6 billion last year.
Speaking in the Senate, Conservative Senator Leo Housakos said that “The terms of the agreement were not fully disclosed to Parliament or the public … we still don’t know today if that $400 million was a grant or a loan, or when it will be repaid.”
Whether you like Stephen Harper or not, one thing that we can agree on is that national unity concerns evaporated while he was in office.
For most of his time in office, Harper was popular in the West, divisive in much of Ontario, and unpopular in Quebec.
That was mirrored in the Conservatives electoral results between 2004 and 2015, with their support base always being in the West, combined with wins when they could increase their support in Ontario, and once in a while doing okay in Quebec when things aligned perfectly.
Yet, take note of what didn’t happen.
Even when Harper and the Conservatives were unpopular in Quebec, separatist sentiment didn’t rise.
In fact, support for Quebec separatism collapsed during Harper’s time in office, with the PQ narrowly winning one election, then getting crushed, then being basically superseded by a nationalist but not separatist party.
Quebec separatism was dealt a crippling blow during Harper’s time in office, and the reason it happened is quite simple.
Harper respected provincial jurisdiction and encouraged the growth of key Quebec industries.
Harper generally stayed out of Quebec’s business, didn’t interfere with provincial matters, and pushed for the growth of all sectors of Canada’s economy, including Quebec’s aerospace sector.
Even when Quebeckers didn’t like Harper, they felt he wasn’t actively against them.
As a result, many Quebeckers felt it was possible to succeed within Canada, even under a leader that wasn’t popular in their province.
And that brings us to Justin Trudeau.
Some establishment pundits claim the rise of separatist sentiment in Alberta and the West is simply because Justin Trudeau is unpopular.
But if that was true, separatist sentiment in Quebec would have surged because of Harper’s unpopularity.
And as we know, that didn’t happen.
So it’s not about Trudeau being unpopular.
It’s about the very real perception that Trudeau and his government are actively opposed to Alberta’s key industry.
The Trudeau Liberals are clearly more interested in global virtue-signalling than they are in supporting a key industry in our country. Yet, they continue to express support for industries like the auto sector and aerospace sector that use tons of oil and gas, and just so happen to be in the electoral battlegrounds of Ontario and Quebec.
So, we can see exactly what’s going on:
Alberta and the Western Canadian energy sector are being unfairly singled out by the government, and the resulting rise in anger and separatist sentiment is no surprise.
On Twitter, Anthony Furey summed things up well:
“It’s absurd to filter a decision on #TeckFrontier through emissions targets that we all know are just idealistic posturing. What serious politician does something silly like that to their own country and economy??”
This is why Justin Trudeau is already a failed prime minister.
A leader is supposed to serve their own nation, their own people above all else. In Canada, that means ensuring that each region and province is free and supported in the development of their own core industries.
When that happens, it’s actually very easy to keep Canada together, as Stephen Harper showed.
Yet, instead of serving all Canadians, Justin Trudeau is deliberately dividing our nation, putting international elitist opinion above the unity and prosperity of our country.
Now, because of Justin Trudeau’s failure, Canada’s unity is crumbling, and our nation is at serious risk of irrevocably breaking apart.