The Honourable Stockwell Day, Minister of International Trade and Minister for the Asia-Pacific Gateway, today reported that Export Development Canada (EDC) has made available up to $173 million in repayable loans to help Bombardier Inc. complete and deliver an order for up to eight of its Q400 and CRJ900 aircraft to Sweden’s Scandinavian Airlines (SAS).
The support will be provided under the Canada Account conditional on an agreement being reached between EDC and SAS on the terms and conditions of the sale.
“The aerospace industry makes a significant contribution to the Canadian economy by supporting tens of thousands of jobs from coast to coast,” said Minister Day. “EDC is providing repayable loans to ensure the aircraft production sector remains strong during this economic downturn.”
Bombardier is the third-largest civil aircraft manufacturer in the world. The company employs approximately 17,000 people in Canada. In addition to ensuring Bombardier’s continued viability in aircraft production through this difficult economic period, the SAS transaction will also generate longer-term benefits, such as future purchases of aircraft and aircraft parts.
In 2008, the more than 400 companies in Canada’s aerospace industry supported 82,000 jobs, produced five percent of the country’s manufacturing output, invested $2 billion in Canadian capital projects and R & D, and generated revenues of $22.7 billion.
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A backgrounder follows.
For further information, media representatives may contact:
Director of Communications
Office of the Minister of International Trade and Minister for the Asia-Pacific Gateway
Trade Media Relations Office
Foreign Affairs and International Trade Canada
Export Development Canada (EDC) provides trade finance and risk management services to Canadian exporters and investors in up to 200 markets, making it possible for these companies to compete internationally.
Founded in 1944, EDC is a Crown corporation that operates on commercial principles. It is financially self-sustaining, and is accountable to Parliament through the Minister of International Trade.
The vast majority of transactions facilitated by EDC on behalf of Canadian companies are done under EDC’s Corporate Account. Transactions that fall outside the scope or risk tolerance of the Corporate Account but are considered to be in the national interest may be considered under the Canada Account.