Aerospace sector missing public support
‘Public aid is often criticized in the media’ industry spokesperson
MONTREAL—The aerospace industry is calling for government funding to help it weather the turbulence caused by the COVID-19 pandemic, even as some in the sector say it must also work to change public perceptions and rally taxpayers to its cause.
“This public aid is often criticized in the media, by the general public,” said Suzanne Benoît, CEO of Aéro Montréal, which advocates for the industry.
The comments were made Monday as part of the unveiling of an action plan for the aerospace and air transport sectors prepared by Aéro Montréal and the Montreal Board of Trade.
“Unfortunately, there is a misunderstanding, I would say, on the part of the public, and really, it’s up to us to make this effort to educate people.”
Yet government support is needed, she argued, since competition is fierce and companies in the United States and Europe benefit from various forms of public support.
In addition, she said, the U.S. and several countries in Europe quickly provided billions of dollars in sector aid when the pandemic broke, while the Trudeau government is still reviewing numerous appeals.
In recent years, sectoral aid has been criticized, especially in the wake of the problems that surrounded Bombardier’s financial situation, which led to major restructurings and waves of layoffs following development of the C Series, now called A220 and owned by Airbus SAS.
Before the pandemic, Quebec’s aeronautics industry had some 43,400 jobs and generated sales of $18 billion, or nearly 60 per cent of the sector’s total revenues nationally, said Benoît. However, since the onset of the crisis, some 4,400 jobs have been lost after layoffs at Bombardier, Pratt & Whitney Canada and Airbus Canada.
Federal Economic Development Minister Melanie Joly did not give event participants clear signals when asked about aid to the aerospace industry.
“Canada has the size, the strength and the stature to manage the pandemic and come out of the crisis,” she said when questioned by Board of Trade president Michel Leblanc. “Our goal is to be there to help our aerospace sector, but we have to do it intelligently.”