Bombardier is at odds with the Ontario Government over the price it should pay to buy out the Canadian province's 49% share in de Havilland.
Bombardier and Ontario jointly spent C$100 million ($74 million) in 1992 to buy Toronto-based de Havilland from Boeing. The company has the option to purchase Ontario's stake for C$49 million by the end of next January, but the province wants to renegotiate the deal, or extend the agreement, because it believes that its stake is now worth more.
Bombardier argues that it has invested heavily in de Havilland over the past four years, boosting employment from 2,700 people to more than 6,200. Production of Dash 8 regional turboprops has also been doubled, to 50 a year, while business has been brought in from other divisions, including final-assembly of the Global Express long-range business jet.
De Havilland's sales are approaching C$700 million a year, and the company is close to being profitable. The Canadian Auto Workers union, which represents de Havilland plant employees, wants the Ontario Government to keep its stake in the company to protect jobs.
Source: Flight International
