Brian Dunn/MONTREAL
Bombardier is to receive launch aid worth C$87 million ($64 million) from the Canadian Government to help develop the CRJ-X stretched, 70-seat, derivative of the Canadair Regional Jet.
The Canadian group has not formally launched the CRJ-X, but began taking orders for the aircraft in September. It is expected to give a formal go-ahead in December, with first deliveries anticipated in late 2000. The interest-free loan will be repaid through royalties from sales of 400 aircraft.
The cost of developing the CRJ-X has been pegged at C$250 million and Bombardier is expected to bring in risk-sharing partners to help spread the development cost. Half of the C$800 million expense of developing the company's, Global Express long-range business jet, for example, is being provided by partners.
General Electric is already developing the CF34-8C engine to power the CRJ-X and Mitsubishi Heavy Industry, a risk-sharing partner on the Global Express and Bombardier's de Havilland Dash 8-400, is expected to take a stake in the new regional-jet project.
The Canadian funding support comes from the Federal Government's C$250 million-a-year Technology Partnerships Canada programme, launched earlier this year after industry protested at the cancellation of the successful Defence Industry Productivity Programme, which had provided funding support for a range of aerospace programmes.
The CRJ-X is one of five projects for which funding support, is expected to be announced over the next few weeks. Pratt & Whitney Canada and Messier Dowty, which has a Canadian landing-gear plant, are also expected to receive loans under the programme.
Source: Flight International