The Canadian government has agreed to bail out Bombardier after the company posted a bigger than expected $4.9 billion loss in the third quarter due to writedowns to its CSeries and Learjet 85 aircraft programs.
The Quebec government will take a 49 percent stake in the CSeries program while the Learjet 85 program has now been officially canceled due to slow sales, Bombardier announced.
The Montreal-based company, beleaguered for the last few years by CSeries cost overruns, delays and slow sales, announced that the province of Quebec will invest $1 billion into the airliner program, which is about two years behind schedule.
The government investment comes weeks after Airbus turned down an offer by Bombardier to take on a risk-sharing role in the CSeries program.
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