OTTAWA — Transport Minister Marc Garneau says he has mixed feelings about Bombardier Inc.'s announcement of 7,000 job cuts, along with a deal to sell planes to Air Canada.
The minister sang the praises of the Bombardier's new aircraft, but he did not immediately commit to helping the troubled company out of its financial difficulties.
Rather, he said the federal government wants Canada to maintain its competitive position in the global aerospace market.
Bombardier announced Wednesday it will cut 7,000 people from its global workforce, including 2,830 in Canada.
But at the same time, the aerospace manufacturer said it had a big new order from Air Canada to buy 45 CSeries 300 planes, with an option to buy up to 30 more.
Garneau said the federal government did not pressure Air Canada to buy the planes.
The federal government has been reviewing a request from Bombardier for financial aid to deal with the CSeries, the company's new generation of commercial aircraft.
Bombardier repeated its request for federal aid on Wednesday.
Garneau said the government continues to ponder the request from Bombardier and that any federal investment would need to be made for solid reasons.
The Quebec government has already announced a $1-billion injection, but has made it clear that it expects Ottawa to match its investment.
The federal government is widely expected to show its intentions in its first budget in late March.
Five things to know about aviation emissions as Ottawa eyes Bombardier bail-out
OTTAWA — Last week in Montreal, the United Nations' International Civil Aviation Organization proposed new greenhouse gas emission standards for aircraft. Here's five things to know about the proposal:
— It's the first time that binding efficiency standards have been imposed internationally on aircraft. The negotiated proposal must still be adopted by the civil aviation councils of 36 member states.
— The standards would require an average four per cent reduction in fuel consumption at cruising altitudes for airliners and cargo planes compared to new planes built in 2015.
— All new aircraft designs would have to meet the standard starting in 2020, as would any designs in actual production by 2023. All planes manufactured after 2028 would have to comply with the new standards, but older aircraft in service would not be phased out or have to comply with the new emissions standards.
— Putting limits on aviation emissions, which comprise about two per cent of the global total but are forecast to triple, has been a priority of U.S. President Barack Obama. The White House says the new standards should cut carbon emissions by about 590 tonnes from 2020 and 2040, equivalent to taking more than 140 million cars off the road for a year.
— The regulations on emissions are to be followed by a second set of rules under negotiation by the ICAO that would establish market-based incentives, such as carbon levies, for further emission reductions by airlines. The second phase is supposed to be completed later in 2016.
QUEBEC DROPS LAWSUIT AGAINST AIR CANADA AFTER BOMBARDIER ANNOUNCEMENT
MONTREAL — Air Canada says Quebec has agreed to drop its lawsuit against the airline in exchange for a commitment to have heavy maintenance work for Bombardier's CSeries planes carried out in the province.
The company says the work would be done for a minimum of 20 years, beginning in 2019.
Air Canada's announcement — subject to completion of final agreements — came hours after it revealed that it has a letter of intent with Bombardier to buy up to 75 CSeries aircraft.
The Quebec government launched the lawsuit against Air Canada after Aveos Fleet Performance, which did much of Air Canada's aircraft maintenance, closed in 2012 in a move that laid off 2,600 employees, including about 1,700 in Montreal.
The province argued that Air Canada (TSX:AC) breached its legal obligations under the 1988 Air Canada Public Participation Act, which required the airline to keep heavy maintenance operations in Quebec, Ontario and Manitoba.
Quebec won the original court decision in 2013 and the Quebec Court of Appeal decision in November.
Last month, Air Canada asked the Supreme Court of Canada to overturn the appeal court ruling.
