Quebec to support CSeries purchases

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The province of Quebec will provide up to $1 billion in financing to support purchases of CSeries aircraft from Bombardier.

Investissement Quebec will provide the financing, according to a notice in the provincial government's Official Gazette on 3 April, and will complement export credit for the aircraft from Canada's export credit agency Export Development Canada (EDC).

"It gives a level of comfort to airlines that are contemplating the purchase of the aircraft," says Marc Meloche, vice-president of structured finance at Bombardier Commercial Aircraft. "They can tick off a box in terms of financing."

The support from Quebec is "reinsurance" to financing from EDC, which is the lead export credit agency for the CSeries, he says. The UK's Export Credits Guarantee Department and the Export-Import Bank of China (Chexim) will also provide support.

Bombardier is developing two variants of the CSeries, the 100- to 120-seat CS100 and the 130-seat CS300 plus a high-density version of the CS300, with the first flight planned for June.

List price is $62 million for the CS100 and $71 million for the CS300, according to the airframer.

Export credit can cover up to 85% of an aircraft's cost, under Organisation for Economic Co-operation and Development (OECD) guidelines.

Bombardier has firm orders for 66 CS100s and 114 CS300s, options for 49 CS100s, 65 CS300s and 20 CS100/300s, and letters of intent for 17 CS100s and 40 CS300s, according to Flightglobal's Ascend Online database.

EDC has provided financing to customers of other Bombardier aircraft types, including CRJ family regional jets and the Dash 8 Q400 turboprop.