Backgrounder Article from
February 7, 2017
The Government of Canada today announced $372.5 million of repayable program contributions to Bombardier for two projects: to support the development of the Global 7000 business aircraft through the Strategic Aerospace and Defence Initiative (SADI) and the C Series, under existing contribution programs. Subject to the execution of final agreements, the program contributions will be provided over four years, in a number of installments, with the majority allocated to the Global 7000. These program contributions will secure high-quality jobs in design, engineering and manufacturing across Canada through Bombardier's ongoing work on the technologies and innovations that will be the future of the aerospace industry. Specifically, the C Series program directly employs approximately 2,000 people and at full production, the Global 7000 is expected to directly employ approximately 3,000 people.
Strategic Aerospace and Defence Initiative
The Strategic Aerospace and Defence Initiative (SADI) was launched in 2007. It provides repayable contributions to support research and development (R&D) projects in the aerospace, space, defence and security sectors. SADI is available to firms of all sizes to support product, service or process innovation. The program is managed by Innovation, Science and Economic Development Canada's Industrial Technologies Office.
SADI has three objectives:
- to encourage strategic R&D that will result in innovation and excellence in new or improved products, services and processes;
- to enhance the competitiveness of Canadian aerospace and defence companies; and
- to foster collaboration between research institutes, universities, colleges and the private sector.
Bombardier and the Canadian aerospace industry
Bombardier is a leading-edge Canadian corporation that develops, markets and sells both aircraft and railway equipment worldwide. Bombardier is headquartered in Montréal and employs 66,000 people around the world, including over 21,000 in Canada. The firm is a key anchor to Canada's world-class aerospace industry, with a supply chain and highly skilled workers located across the country, in particular in the Toronto area and the Montréal world-class aerospace cluster. Bombardier Inc. has been the top corporate R&D investor in Canada since 2012.
The aerospace industry contributed more than $28 billion to Canada's gross domestic product and 211,000 jobs to the Canadian economy in 2015. Aerospace manufacturing is the number one R&D investor across manufacturing industries and accounts for close to 30 percent of total manufacturing's R&D investments.
Bombardier C Series
The Government of Canada has a long-standing relationship with Bombardier, recognizing its importance to the aerospace sector in Canada. The government was an early investor in the R&D of Bombardier's C Series aircraft.
In May 2005, Canada first announced that it would support the C Series with a $350-million repayable contribution, and in 2008 the contribution agreements with the firm were signed. At the same time, Quebec made a $117-million contribution and the Government of the United Kingdom contributed £123 million.
The C Series aircraft is a made-in-Canada clean technology and is “designed for environment.” It delivers 18-percent lower seat-mile costs, a 20-percent advantage in fuel burn and CO2 emissions, a 25-percent reduction in maintenance costs, and a smaller noise footprint by a factor of four compared to in-production aircraft. As Bombardier designed the aircraft assessing its environmental impact from design through manufacturing to operation and end-of-life, it earned the C Series an Environmental Product Declaration—an industry first.
With additional program contributions to the existing C Series programs, Bombardier can continue pursuing forward looking innovative and green aircraft technology development activities.
Bombardier Global 7000
The Global 7000 introduces a new family of business aircraft that has the largest cabin and the longest range in the ultra-long-range market segment. This aircraft will offer the capability of connecting key cities, enabling customers to travel to more destinations faster, with greater efficiency. R&D activities for the Global 7000 program address technological requirements that will allow Bombardier's Global family of aircraft to offer industry-leading performance.
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Hon. Navdeep Singh Bains Innovation, Science and Economic Development Canada Transport Science and Technology Economics and Industry
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