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.
Date: October 31, 2015
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?