The government of Prime Minister Justin Trudeau said it was reviewing the application.
Advertisement
“If the auto industry has been supported by taxpayer money, which is fine, then the aeronautical industry of Montreal needs also to be supported”.
Bombardier employs 3,000 people within its United Kingdom rail business, 1,200 of which are at Litchurch Lane.
It is expected Air Canada’s commitment in this regard will help establish a centre of excellence for C Series aircraft maintenance in the province, the airline said in a news release.
Air Canada said on Wednesday that it has ordered 45 of the C Series planes, with an option to buy 30 more.
“Throughout 2016 and 2017, we will adapt our global manpower to current market conditions, while hiring to support growing segments”, President and CEO Alain Bellemare said in the statement.
Bombardier will determine the ratio for the reverse stock split later, but it said it was targeting an initial post-consolidation price of C$10 to C$20 per class A or Class B subordinate voting share.
“That was a catalyst in helping us reengage with airline customers”, said Bellemare.
He said the C Series, which is created to be quieter and more fuel efficient than its competitors, is a great start for a turnaround in Bombardier’s fortunes.
No job losses are anticipated at the commercial aircraft business division.
The reductions will begin in the coming weeks and will be implemented over a period of two years.
However, Transport Minister Marc Garneau said the end of the lawsuit will allow the federal government to “clarify” the Air Canada Public Participation Act to avoid future litigation.
“We’re taking this hard decision to make Bombardier stronger”, he said.
Mick Cash, RMT general secretary, said: “With a desperate shortage of rail rolling stock in Britain it is criminal that jobs are being axed at the UK’s last train-building workshop, Bombardier in Derby”.
The company’s announcement of sweeping job cuts and declining financial results pointed to continued challenges.
The company, which reports in USA currency, had a net loss of $5.34 billion (U.S.) for 2015, including a $677 million (U.S.) loss in the fourth quarter.
The company forecast 2016 revenue of $16.5 billion to $17.5 billion, below analysts’ expectations of $18.07 billion, according to Thomson Reuters I/B/E/S.
Since receiving the cash injection from Quebec, Bombardier’s stock had fallen 40 percent to a record low of 72 Canadian cents (US$0.52) on Friday.
Advertisement
The Canadian federal government has been rumored to be considering offering a bailout to the aerospace giant, similar to the 1 billion Canadian dollar lifeline that Quebec offered past year.
