Bombardier has decided not to risk souring its relations with Ottawa and will not challenge the decision to award Boeing a multibillion-dollar off-market contract to replace the company's aging surveillance and anti-submarine warfare aircraft. Royal Canadian Air Force (RCAF).
Published yesterday at 7:00 p.m.
After considering appealing the decision in court, the private jet maker announced Monday that it was finally changing its mind. The Quebec aircraft maker is still “deeply” disappointed that it didn't have the opportunity to compete with the American giant, but is now looking ahead.
“Bombardier recognizes the Government of Canada's decision and is focused on building a stronger and strategic relationship between the talented women and men of Canada's aerospace and defense industry and the Canadian Armed Forces,” the Montreal-based multinational wrote in a statement Explanation.
In a context where the company wants to increase its exposure to the defense sector, it obviously does not want to add fuel to the fire. In recent months, Bombardier President and CEO Éric Martel has not hesitated to criticize the work of federal officials on the matter, denouncing a lack of “integrity” and “lack of transparency.”
A concept”
On November 30, the Trudeau government confirmed the purchase of up to 16 Poseidon P-8A aircraft from Boeing to replace the RCAF's aging CP-140 Auroras. The total value of the agreement is estimated at 10.4 billion. Ottawa justified its decision by saying that the American manufacturer's aircraft was in use in contrast to the “concept” of its Quebec competitor.
Bombardier wanted to offer a militarized version of its Global 6500 private jet. Such a version of the aircraft is not yet flying, which clearly had a negative impact on the company.
In return for the contract received, Boeing must generate economic benefits equal to its share of the contract, i.e. $5.4 billion.
In an interview with La Presse on December 4, Mr. Martel strongly condemned the Trudeau government's decision. He found it difficult to explain how Boeing, which had “almost brought the Canadian aviation industry to a standstill,” could win a lucrative contract without a competitive bidding process.
In 2017, Boeing temporarily convinced Washington to impose massive tariffs on Bombardier's C-Series. The American company had lost this trade dispute. However, this dispute further weakened Bombardier financially as the company had sold the C-Series to Airbus.