In a wide-ranging speech outlining his vision of a new national aerospace policy, Bombardier president and chief executive Paul Tellier has called on Canadian authorities to step up their assistance for the country's aerospace industry, including greater support for aircraft sales financing.

Speaking to the Montreal Board of Trade last week, he highlighted several challenges facing Canadian manufacturers. These included greater competition from foreign companies which benefit from huge government financing in terms of research and development, export financing and tax breaks; new industry players such as China, Russia and Japan; and the rising Canadian dollar.

He suggested the creation of new funding partnerships for research and development with the sharing of risks and profits between the public and private sectors. He encouraged provincial and federal governments to maintain their level of investment support in production facilities and to create innovative incentives. Tellier believes a new policy "should include a major sales financing assistance component" and proposed that "Canada make a long-term export financing commitment".

He pointed out that over the last three years, Export Development Canada (EDC) has financed on average 41% of Bombardier's total regional aircraft deliveries. In comparison, Brazil's development bank BNDES has financed on average more than 80% of Embraer's total deliveries over the same period.

Of even greater concern, says Tellier, is the fact that EDC's support for 2003 has declined to 37% despite Bombardier's increase in aircraft deliveries, with most of that financing being for existing contracts. Embraer, by comparison, received state support for virtually all of its financing this year.

At the same event, Tellier told reporters that if Bombardier ever decides to build a new 100-seater airliner, it has not ruled out the possibility that it could be built in the UK rather than Canada.

Bombardier's Belfast factory in Northern Ireland - the former Short Brothers - is a "first-class facility". He said the company would consider assembling an airliner there if a financing package was available that was better than in Canada.

MARK PILLING

Source: Flight Daily News