Enabling Failure: Bombardier Gets Yet Another Bail Out From Quebec

The timing of the Quebec's government risky decision to hand Bombardier a whopping $1 billion bail out (I'm not agreeing with the notion it's an investment) couldn't have been worse given teachers have been striking.

Let's look at the 'optics' of this shall we?

The government of Quebec is basically saying business comes before education. And the reasons (more like excuses) for dragging Bombardier's sorry ass out of the mud again are predictable if not tiresome at this point.

As is usually the case, the grievances of the teachers is largely of the government's doing. They're the ones messing with class room sizes and children with special needs. The reason? To cut costs as part of responsible spending and it's much easier to play 'tough guy' with teachers than it is with their Bombardier.

I'm all for scaling back spending but how then do they have the temerity to throw $1 billion at Bombardier? A company in perpetual loss mode. They just reported $4.5 billion in losses - again.

Alas, teachers unfortunately don't have the kind of crony leverage Bombardier has. However, their emotional pleas that the government's actions actually impacts students negatively is an accurate one and not far off the usual 'Made in Quebec' angle played by Bombardier.

Does it makes sense to you that we should keep propping Bombardier (and don't forget some of those people earn high salaries which you help to maintain for a private company) based on pride?

Not to me it does.

Bombardier is Canada's GM albatross.

The reason for the wasteful bail out is Bombardier's C-Series planes which aren't selling well despite their quality and the company needs cash flow until they hopefully get the sales they want. And from what I understand, not that crazy a risk.

But how is this our problem?

Customers, turns out, prefer to go with the alternatives offered by Boeing and Airbus. Bombardier entered a highly competitive market inhabited by Americans giants on their own and something tells me part of the risky calculations factored in they could always rely on government assistance to enable their poor business plans.

This is not a company. It's a Crown Corporation by other means. A ward of the state. A company that gets all the bids behind a cynical bidding mechanism with no transparency.

How does a company $9 billion in debt continuously get support from academics like Professor Karl Moore of McGill University despite its horrendous ability to stay afloat on its own? He repeats the same gargle-gaggle incompetent Bombardier execs use to justify their hand out.

Moore called it a 'necessary move' because Bombardier is a 'critical part of our economy representing 2% of the GDP and '95% exports'.

Not to mention all the jobs and companies dependent on this bail-out addicted monstrosity propping a House of Cards.

Yet it can't steer itself into profitability on its own. Bombardier operates in a low-success rate industry with high risks as the Minister of the economy Jacques D'Aoust admitted. But is still gonna give them money, you see?

I don't know what world Moore and politicians live in but where's the 'pride' in having to rely on tax payers to survive?

At some point we need to just let it go and take our medicine because investing $1 billion in a project likely to fail is not sound or responsible.

Nationalize Bombardier if they're so 'critical' to our pride already or else let it sink.

No more bail outs.

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