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Bombardier May Receive Federal Aid After Layoffs

Posted 10-10-2004 at 04:40 PM

Source from Bloomberg.com
[ Bombardier Inc. may receive federal aid, two Canadian cabinet ministers said the day after the company said it will fire 2,000 workers and cut jetliner production next year because of reduced demand.

``We are accelerating the development of an aerospace strategy for Canada that would include of course dealing with the Bombardier issues but it would be broader, and it would extend through the aerospace industry across this country,'' Industry Minister David Emerson said in response to a question in the House of Commons in Ottawa. He didn't say when or what kind of assistance might be coming.

Most of Montreal-based Bombardier's firings will be in its hometown, and the company may let go another 1,200 workers if struggling Delta Air Lines Inc. fails to take delivery of the planes it has ordered. Chief Executive Paul Tellier, faced with declining profit margins at his two main businesses of planes and trains, is trying to reduce costs as Delta and US Airways Group Inc. post losses, hurting demand for regional jets.

Bombardier's shares fell 13 Canadian cents, or 4.7 percent, to C$2.66 at 12:39 p.m. on the Toronto Stock Exchange. ]