Description: The government of Quebec has promised $1 billion in assistance to Bombardier Inc to help ensure the company’s new C series jet makes it to the marketplace. In exchange for its financial assistance, the government gets 49.5% of the C series jet and a right to buy 9% of Bombardier shares. Some commentators believe this aid will not be sufficient to get Bombardier through its crisis.

Source: Globeandmail.com

Date: October 31, 2015

Link: http://www.theglobeandmail.com/report-on-business/bombardier-and-its-state-aid-from-quebec-how-did-it-come-to-this/article27052858/

Discussion Points:

1) What is your opinion regarding this large intervention by the government of Quebec?

2) The article outlines a number of challenges faced by Bombardier. What do you see as the company’s most significant challenge?

3) How will the Quebec government account for these investments on its financial statements?