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Bombardier shares gained 2 per cent to $2.60 (Canadian) in Toronto trading on Tuesday. (The Globe and Mail file photo)
Bombardier shares gained 2 per cent to $2.60 (Canadian) in Toronto trading on Tuesday. (The Globe and Mail file photo)

With Ottawa’s aid, Bombardier’s short-term future gets a lift Add to ...

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Canada’s $372-million support package for Bombardier Inc. should help bolster the company’s finances in the near term as it ramps up deliveries of new products, analysts said. But the real question is whether it sets the stage for further public backing on future projects.

“It’s a good first step,” Louis Hébert, a corporate strategy specialist at Montreal’s HEC business school, said. “But this isn’t over. Product life cycles in this industry are long and this is only a beginning. The question is sales. For how long can Bombardier support all of its activities? I think this amount of money sends a signal that the federal government wants to get on board.”

This is the Bombardier aircraft that Ottawa just backed with an interest-free loan (The Globe and Mail)
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