Canada to invest in green aerospace
MONTREAL — Canada is ready to invest up to $440 million in three aerospace companies in the province of Quebec, Prime Minister Justin Trudeau said on Thursday, in a boost to the sector ahead of an expected fall federal election.
The money, designed to support new green aerospace projects, will be shared between training specialist CAE Inc., the Canadian unit of U.S. engine maker Pratt & Whitney and Textron, the parent company of Bell Helicopter.
When investments by the three firms are added, the total amount of money that could be available is more than $1.8 billion, officials said.
Trudeau told reporters the money would help create and maintain 12,000 jobs in Quebec. The province accounts for almost a quarter of the seats in the House of Commons and is crucial to his hopes of retaining power.
Reuters revealed on Wednesday that Canada would "co-invest" with the three companies to bring a Pratt hybrid turboprop engine to first flight.
"There is fierce global competition to see who will develop the next cleaner aircraft or the next technology which will revolutionize the sector," Trudeau said.
The government of Quebec was ready to invest another $253 million, he added.
Canada's aviation sector, like others, saw traffic plummet due to COVID-19 travel restrictions, and some companies like Airbus SE complained government support did not go as far as bailouts elsewhere.
Aerospace companies worldwide, including airplane and engine manufacturers, generally tap their governments for support in a trend that has made the sector a lightning rod for global trade tensions.
Canada's announced support for the companies is among the first high-profile measures since Brazil dropped a recent complaint against Canada, and the United States and Europe called a truce in a 17-year aircraft trade war.