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Ottawa Pledges Up to $2.5 Billion in Loans to De Havilland for Canadair Production
Ottawa pledges up to $2.5 billion in loans to De Havilland to boost production of Canadair water bombers.
Key points
- The second assembly line will be in Alberta, and the financing is meant to double production capacity to an eventual 20 planes per year.
- Until last week the Canadair DHC-515 was sold out through 2034, and the company says more planes can be assembled from 2030.
- John Gradek of McGill University asked who carries the risk if De Havilland cannot build the planes at scale.
Why it matters. The loans could let De Havilland expand output of firefighting aircraft, though questions about financial liability and production capacity persist.
The federal government has earmarked up to $2.5 billion for De Havilland Canada, the Finance Department said, to expand production of its Canadair water bombers. The money will fund a second assembly line in Alberta and double capacity to an eventual 20 planes a year, according to De Havilland. Financing will come as loans and loan guarantees from Export Development Canada, spokesperson Benoit Mayrand said, and the interest rates and repayment terms are confidential.
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Ottawa Pledges Up to $2.5 Billion in Loans to De Havilland for Canadair Production
The federal government has pledged up to $2.5 billion in financing to De Havilland Canada, the maker of the Canadair water bomber. The aim is to increase production of the firefighting aircraft. The money will enable the company to build a second assembly line in Alberta, the Finance Minister's office said. The Canadair water bomber is used to combat wildfires. The loans are intended to expand the company's manufacturing capacity.