Yawn. The Canadian government is known for providing bailouts to Bombardier. If the assistance is deemed illegal, then Bombardier will raise money some other way. There shouldn’t be major long-term effects.
Definitely. All of this trade dispute malarky has nothing to do with jealousy. Just a slightly unethical, but completely legal means of getting rid of competition. Bombardier was over ambitious in the beginning, and the Bombardier family refused to dilute their ownership stake. This whole interest-free loan thing is to keep Bombardier from going under while they ramp up production rates.
Bombardier is a publically traded company, just look at their balance and statement of cash flows. A company can divert cash really quickly. The CSeries program was indeed in danger of going under, now they’re not. If the repayment of the funds is ordered, Bombardier can drag out the process so much that they won’t be at risk of going under anymore by the time the order can be enforced and the damage would’ve already been done.
The $382.2 million loan doesn’t even come close to covering the discounts Bombardier offered to Delta. It is reported that the Delta deal was about $19.6 million per frame, which is over $4.5 billion off list price, and about a billion off of Boeings cost claim. Now, I’m not an expert on international trade, and the decision can very well be against Bombardier because of the shaky legal ground the loans are standing on, but to claim that the Canadian government caused the discount is a little far-fetched.