Development support for US manufacturer could be a model for government launch aid for Bombardier's new CSeries
The Canadian and Quebec governments are to help fund development of Bell's new range of civil helicopters in a deal that could be a model for any government support for development of Bombardier's proposed CSeries 110-seat airliner.
The federal and provincial governments will each provide C$115 million ($93 million) towards the C$700 million development cost of Bell's Modular Affordable Product Line (MAPL) family of helicopters, the first of which is the Model 429 light twin unveiled at last month's Heli-Expo show.
Announcing the investment at Bell Helicopter Textron Canada's plant in Mirabel, near Montreal, Canadian transport minister Jean Lapierre hinted that he hopes to return "in a few weeks...to make other announcements". Quebec is bidding against Ontario and New Mexico for final assembly of the CSeries. Bombardier's CRJ700/900 final assembly plant is in Mirabel.
The Canadian manufacturer is seeking C$700 million in government launch aid to cover a third of the development cost of the CSeries, with a decision on whether to launch the aircraft expected by the end of the month, when Bombardier will unveil its fiscal year 2004-5 results. Production of the company's 50-seat regional-jet, the Montreal-assembled CRJ200, fell sharply last year.
Bell's MAPL family will be developed and produced at its commercial helicopter plant in Mirabel. The Canadian government says the company has agreed to invest a minimum of C$449 million in four new light helicopters and other research and development. MAPL will consist of a light turbine single and a light turbine twin, each with two fuselage sizes. Bell says it has 110 orders for the 429, certification and first deliveries of which are planned for the first half of 2007.
The US company says the government investment, provided through the existing Technology Partnerships Canada (TPC) programme, will be repaid with 1.8% interest from sales of MAPL helicopters. Korea Aerospace Industries and Japan's Mitsui Busan are also risk-sharing partners in the 429.
In January, TPC announced a C$207 million investment in engine research and development at Pratt & Whitney Canada's plants in Ontario and Quebec. The funding was not tied to any specific engine, but last month P&WC launched development of the more powerful PW210 turboshaft, initially to power Sikorsky's new S-76D.
GRAHAM WARWICK / WASHINGTON DC
ADDITIONAL REPORTING BY BRIAN DUNN IN MONTREAL
Source: Flight International
