Industry Support | “At home, we improvise a little,” says the boss of Bombardier

Two weeks after criticizing the enthusiasm of governments to welcome Boeing to Quebec, Bombardier adds more and affirms that Ottawa is “improvising” in its way of supporting the aerospace industry.

Asked to comment on the federal government’s approach to the sector on Wednesday, the president and CEO of the private jet manufacturer did not mince his words.

“I am the CEO of one of the largest aeronautical manufacturing companies in Canada and I have not seen the strategy if there is one,” he said, before the Chamber of Commerce of Metropolitan Montreal (CCMM). I have not seen it. I’ve heard of it, but I’d like to read it. »

Mr. Martel was responding to a question from the President and CEO of the Chamber, Michel Leblanc. He did not address the journalists present on site at the end of the event organized in downtown Montreal by the business forum.

The big boss of the Quebec aircraft manufacturer believes that Ottawa should take inspiration from what is happening south of the border. In his opinion, the American government finds a way to stimulate innovation among its local champions by awarding them contracts, which makes it possible to finance technological advances which can then be exported to the four corners of the world.

“At home, we improvise a little,” added Mr. Martel.

Unsurprisingly, the latter referred to the 5.4 billion private contract won by Boeing to replace the aging surveillance planes of the Royal Canadian Air Force (RCAF).

This issue had taken a political turn since Bombardier had, for months, made considerable efforts to request a formal call for tenders in order to offer a militarized version of its Global 6500. Despite the media coverage of the issue, the Trudeau government had nevertheless decided to award a contract without a call for tenders to the American manufacturer.

Better listening

The Bombardier manager believes that the major players in Canadian industry should be consulted more by decision-makers. Referring to “big labor challenges” ahead, Mr. Martel noted that the business jet maker expects to see up to 5,000 of its employees – factory workers, technicians and engineers – leaving for retirement within the next seven years.

Despite the needs, training schools are far from full, says Mr. Martel.

“We need our governments to see this and work to fill the schools because the jobs will be there. »

Mr. Martel welcomed the creation of an aerospace innovation zone in Quebec, but that did not prevent Bombardier from being surprised by the treatment reserved for Boeing two weeks ago.

The American giant had unveiled investments of 275 million in Quebec, including 110 million injected into the innovation zone in order to finance the establishment of a research and innovation center. Boeing was not directly funded by Quebec and Ottawa, but it will benefit from Quebec expertise.

Read “We’re Here to Stay”

In reacting to the announcements, Bombardier recalled that the American multinational had “recently put the aeronautical industry in Quebec at risk” when it had filed appeals in the United States in order to temporarily obtain customs tariffs of 300% on aircraft. of the C Series assembled in Mirabel.

Without naming him, Mr. Martel took advantage of his visit to the CCMM to respond to recent comments from the federal Minister of Industry, Science and Innovation, François-Philippe Champagne.

“I heard a minister say that Bombardier alone does not represent aeronautics,” explained the manager. I agree, but at the same time, we represent 40% of aeronautics revenues in the country. It’s true that we are not alone, but at the same time, I think that we are essential. We should be at the table and [participer aux] conversations. »

Another good mark

Bombardier also received encouraging news from Standard & Poor’s, one of the main rating agencies. She raised the credit rating of the Quebec multinational to B+. An improvement in credit rating generally results in a reduction in borrowing costs.

In its analysis, the New York agency highlighted the aircraft manufacturer’s progress in reducing debt. Moody’s also revised Bombardier’s credit rating upwards last May.

Investors, however, did not seem surprised by Standard & Poor’s decision. On the Toronto Stock Exchange on Wednesday, the company’s shares closed at $90.61, up 64 cents, or 0.7%.