Quebec Extends Partnership with Airbus Canada Until 2035
Quebec is extending its partnership with Airbus Canada until 2035, with both parties jointly investing $1.65 billion to continue manufacturing the narrowbody A220 planes in the province. The French aerospace giant Airbus holds a 75 percent stake in Airbus Canada, while Quebec owns the remaining 25 percent. This new investment includes $1.2 billion from Airbus and $413 million from Quebec through Investissement Québec.
Initially, Airbus had planned to buy out Quebec’s shares in 2030. However, disruptions caused by the pandemic, supply chain issues, and a labour dispute have slowed production, prompting Quebec to extend the partnership by an additional five years to recoup its investment. Quebec Premier François Legault confirmed this extension at a news conference on Tuesday, emphasizing the strategic importance of the investment for the province’s economy.
Quebec’s involvement with the aircraft, initially known as the C Series, began in 2016 when Bombardier owned the project. The province invested $1 billion US at that time and added another $300 million US in 2022. Bombardier eventually sold its stake to Airbus in February 2020 to help alleviate its debt burden.
Airbus Canada CEO Benoît Schultz highlighted the need to double the production rate at the Mirabel, Quebec assembly line to 14 planes per month to achieve profitability. Currently, Airbus Canada employs 4,000 people in Quebec, with 3,500 dedicated to the A220 project. Additionally, the project involves 18,000 supplier jobs. The average annual salary of Airbus employees in Quebec is $87,500.
Premier Legault emphasized the importance of maintaining quality jobs in the province, stating, “It’s a lot of money but it’s strategic. We want quality jobs in Quebec. It’s our priority.” He also announced that Airbus has guaranteed that two-thirds of the jobs required to produce the A220 will remain in Mirabel.
However, not everyone supports the latest investment. The Montreal Economic Institute (MEI) criticized the investment as a waste of money. Renaud Brossard, MEI’s vice-president of communications, said in a news release, “Whatever Quebec does, the tax dollars that it risked in the A220 project are gone, and placing another bet with our money won’t change that. At some point, the Legault government will have to realize that it is throwing good money after bad, and that it has already lost the bet.”
Despite the criticism, Airbus has shown strong performance, with financial statements revealing that 900 aircraft have been sold to around 30 customers, and 340 of these aircraft are already in service. The province’s Economy Ministry remains optimistic about the project’s future.
The extended partnership and significant investment underscore Quebec’s commitment to maintaining a strong aerospace industry and securing high-quality jobs for its residents, while also striving to achieve profitability in the competitive aviation market.
