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Quebec premier watching Bombardier’s financial situation ‘very closely’

Quebec Premier François Legault said the past investment made by the Liberal government of Philippe Couillard was a 'mistake.'. Jacques Boissinot/The Canadian Press

Quebec Premier François Legault says he’s watching the financial situation at Bombardier Inc. “very closely” but wouldn’t indicate if the government will once again come to the company’s rescue.

Legault told reporters that he could not “say more” about the possibility of additional financial assistance for the aircraft and train manufacturer.

Questions about Bombardier’s future were raised last week after the company warned about its financial results, cast doubt about its continued participation in the A220 commercial aircraft and announced it was reviewing options to reduce its heavy debt.

READ MORE: Bombardier’s shares plunge after it slashes earnings forecast for 2019

Quebec injected $1.3 billion into the former C Series program in 2016 to obtain a 49.5 per cent stake. Since Airbus took control, the provincial participation has fallen to 16.36 per cent.

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Since the Airbus Canada Limited Partnership (SCAC) needs new funds, the Legault government finds itself in a delicate situation. It must decide whether to inject more public funds to maintain its participation at the current threshold.

Legault said the past investment made by the Liberal government of Philippe Couillard was a “mistake” and that it should now try to make the best possible decision.

READ MORE: New York City pulls 300 Bombardier subway cars amid safety concerns

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