Bomb Bomb Bomb

You Might Be A Liberal 29 Comments

Bombardier;

As Bloomberg reports, Bombardier Inc. will get a Quebec government rescue of as much as $1.3 billion as the struggling planemaker prepares to pump in even more cash into the tardy, over-budget CSeries jetliner.

How quaint. They say “Quebec government rescue” as if Quebec pays its own bills.


Macleans has a sunnier take.
Morning update!

29 Replies to “Bomb Bomb Bomb”

  1. From another aviation commenter;
    Yeah, they must be lining up more financing. I believe they are still planning to sell parts of the rail division.
    Also the first payment from Quebec won’t be until April 2016. They will run out of cash by then if they don’t get an additional investment. I hear they’ve approached the Federal government for bridge financing.
    Any future earnings from the CSeries must now be split in half with Quebec. That already tight margin in Bombardier’s business plan is now miniscule. They’ll never come close to getting their money back… they’ve effectively doubled the number of planes they have to sell to regain their investment.
    The C series aircraft is in a tough market niche.
    Its big selling point is fuel economy. When the price of crude fell, so did its market advantage.
    Airbus strung them along long enough to put them in this financial position.
    ( they were courting Airbus on some sort of production partnership )
    The delays in production were due to management screw-ups, like having to reject entire center section fuselage components from China because they didn’t have proper quality control in place.
    Another impact point is if Toronto doesn’t lift the ban on schedule jet service to the Island airport.
    Porter might have bought them at some sort of subsidized deal if that airport was certified for them.
    Building a new commercial aircraft is a risky adventure at the best of times.
    The C series might still make it, but I’m highly skeptical.

  2. Now you know why they ran a hate campaign against Mr. Harper and Co. They as in CBC, CTv and the Liberal media.

  3. Even after PM Chretien and Martin shilled for these inept Quebec capitalists,the company still goes broke! And bankrupt Quebec loans them 1.9 billion, of what,Alberta money?
    Must be total corruption in the distribution of funds. Bombardier announced with great fanfare a multi-billion dollar contract for LRT cars with China, Chretien acting as personal salesman for them,and guaranteeing a billion dollar loan with Canadian taxpayer’s money, so what the hell happened?
    Bombardier stole the F-18 maintenance contract from Bristol Aerospace of Winnipeg during that other Liberal, Brian Mulroney’s reign,though they had no personnel or facilities to do the job, in another massive boondoggle for Quebec.
    So wtf goes on,even with all the crooked machinations of our top Quebec politicians, this dog still can’t hunt?
    Allah almighty, Trudeau hasn’t even officially taken Office,and the corruption begins!

  4. Pierre kept Canadair on life support by having the taxpayers pay for the Challenger Jet project.
    Then the Germans said ok we will buy some planes if you buy our tanks.
    Then Lufthansa said What the hell?
    Then somebody said we have an idea called hub and spoke.
    Then the money started rolling in for Lufthansa.
    Then the plane orders snowballed.
    And snowballed.
    And now, like the I+S song said “But the good times are all gone ………”

  6. Have the band strike up that stirring old Liberal favourite, The March of the Parasites.

  7. Some of us who have been around for a few years remember Bombardier as the poster
    child for central Canada high tech manufacturing. One I remember is the $400 million to secure a LTR rail car sale to NYC.
    The question is whether western Canadians will sit back once again (ala Lougheed) and watch Liebels feed their friends. The Harper balanced budget will become a faint memory as the trough traffic turns to a stampede.
    Quebec and Ontario are the biggest provincial debtors in the country and continue to spend. How a bankrupt company can get a $1 billion and still retain their dual stock
    ownership structure is mind boggling.

  8. Back in the late ’90s, I recall one of my coworkers on the trading desk haranguing me about Bombardier, which then traded around CAD 50.00/share, saying that I should own some because it was such a paragon of industrial strength and a true Canadian blue-chip stock. If they are so great, I replied, how come they need a billion a year in government subsidies to keep the lights on? Little changed since, except the stock now trades for a buck and change. Never buy stock in companies that need government subsidies to stay in business. Never. Government ability to pick winners is about the same as that of your average Irish Setter.

  9. “How a bankrupt company can get a $1 billion and still retain their dual stock ownership structure is mind boggling.”
    Indeed.

  10. I agree with all the commenters here (and I can’t comment at the National Post anymore because of their change to Facebook). If Bombardier can’t manage their own affairs without government intervention at my expense, they deserve to die. And Webley hits the nail on the head – the government sucks at picking winners and losers because they haven’t been in business with their own money on the line. There is only one taxpayer and the blood stone is completely dry. There are no more “Have” provinces as Alberta just tipped the scale into deficit territory with their latest budget. There is no more robbing Peter to pay Paul because Peter has no more money.
    And yes, electing Trudeau is about the worst idea the country could have had. He has no personal accomplishments, he is an impractical idealist like his father, he doesn’t have his father’s IQ because of his mother, and he has this fantasy about trying to be just like Dad without the tool set.

  13. I didn’t realize it at the time, but it was obvious that the Liberals deficit spending plan was designed to buy the Quebec vote. They don’t care who represents them federally, so long as they get a blank cheque. That could have been one of Harpers biggest blunders. He spent his whole 9 years trying to reach out to Quebec in a rational manner; what a waste, but a good lesson learned moving forward for the next Conservative leader.

  14. You have to be a frisbee coach to see how this will help the middle class of Canada in the long run.

  15. Lighten up! This is just part of the “modest” ah….”infrastructure” that Canada so desperately needs…..

  16. Of course not a whisper of this before the election…
    And there will be little factual reporting of the cost to taxpayers of this gift to Quebec.
    Reporters we have few, 6000 registered, kleptocracy supporting Presstitutes we have for sure.
    Such conflict of interest is unlikely to go unnoticed , failure to disclose the same is a criminal offence in much of industry.

  17. “I didn’t realize it at the time, but it was obvious that the Liberals deficit spending plan was designed to buy the Quebec vote.”
    I somehow doubt their strategy was really anything quite as sophisticated as that.
    It strikes me that the Liberal plan for Québec was pretty straightforward: crush the NDP. And how better to do that than to offer a putatively charismatic young Francophone leader “de vieille souche”? If you set aside the destruction of the NDP’s grip on the province, the Liberal grip on Québec is not quite as convincing as it might appear: 40 out of 78 seats.*
    If you are really searching for “culprits”, might I offer Ontario, especially Toronto (80 out of 121 seats) and certainly the Maritimes (32 out of 32)?
    * Incidentally, in relative terms, the Conservatives actually did quite well in Québec, winning 12 seats vice the five they had held.

  18. Was there ever a time that this company worked without sucking on the taxpayers teat?
    It seems as though they have a whole Begging department that does nothing else other than constructs papers for onother begging session.

  20. Subsidize the unprofitable Bombardier ventures. Kill the F35, for we would be major participants, following the killing of the EH101 opportunity for worldwide development. Replace both more expensive obsolete garbage, from Europe and the US.
    Irresponsible government, courtesy of the LPC and the addled, biased, unethical mediocracy.
    All together, thanks mediocracy.

  24. Harper bought GM shares low and sold high, which of course made no sense to CBC. The Lieberals will buy Bombs shares over valued and sell at zero, which makes perfect sense to the economic wizards at CBC.
    And the Easterns just bend over and lick it all up and wait for more bailout money from Alberta, sorry, those days are done. Its called real change.

  26. You Albertans don’t understand. As long as there is one grain of rice left in your rice bowl, tyrants will take it away from you.

  27. And the last remark made by Justin in his victory speech was (in translation) Quebec is back in Ottawa!

  28. The take away from this?
    1 – Justin made a whole heap of promises based not on fact, but on a fiction.
    2 – Said promises can be summed up with the old adage don’t write any cheques your ass can’t cash.
    3 – The line which is very long of those expecting a payback for electoral support forms on the left.
    4 – Not one of those holding a verbal promisary note are willing to wait as their “need” is based on the fiction that mean evil Harper didn’t give them what they felt entitled to.
    End result – every promise made by Justin Trudeau comes with an expiry date, every one of them.

  29. As Bloomberg reports, Bombardier Inc. will get a Quebec government rescue of as much as $1.3 billion as the struggling planemaker prepares to pump in even more cash into the tardy, over-budget CSeries jetliner.
    How quaint. They say “Quebec government rescue” as if Quebec pays its own bills.

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