dvmthwsvan
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Canada funds Bombardier jet sale to Delta carriers
Thu May 5, 4:38 PM ET
MONTREAL (Reuters) - The Canadian government said on Thursday it had provided $230 million in loans to Delta Air Lines' regional carriers Comair and Atlantic Southeast Airlines for their purchase of Bombardier Inc. jets.
In a statement, International Trade Minister Jim Peterson said the financing was the second transaction under a C$1.2 billion ($960 million) facility set up by the government in July 2003 to support regional jet sales by Montreal-based plane and train maker Bombardier.
"The sale had been made and we are standing behind our aerospace industry," Peterson told reporters in Ottawa.
Canada provided a similar loan of $150 million to Comair in July 2004 for the purchase of Bombardier jets.
Canada set up the special fund, called the Canada Account, to back its aerospace industry after a bitter trade fight with Brazil over each country's financing of jet exports.
Bombardier, the world's top train maker and the No. 3 manufacturer of civil aircraft, is also the world's leading maker of regional jets, closely followed by Brazil's Embraer SA .
Ottawa's department of international trade said the transaction was structured in accordance with commercial principles and conforms with Canada's international trade obligations.
Funding agency Export Development Canada manages the Canada Account. Transactions under the account require approval by Canada's ministers of international trade and finance. The government assumes the loan risk. (Additional reporting by Luke McCann in Ottawa)
Thu May 5, 4:38 PM ET
MONTREAL (Reuters) - The Canadian government said on Thursday it had provided $230 million in loans to Delta Air Lines' regional carriers Comair and Atlantic Southeast Airlines for their purchase of Bombardier Inc. jets.
In a statement, International Trade Minister Jim Peterson said the financing was the second transaction under a C$1.2 billion ($960 million) facility set up by the government in July 2003 to support regional jet sales by Montreal-based plane and train maker Bombardier.
"The sale had been made and we are standing behind our aerospace industry," Peterson told reporters in Ottawa.
Canada provided a similar loan of $150 million to Comair in July 2004 for the purchase of Bombardier jets.
Canada set up the special fund, called the Canada Account, to back its aerospace industry after a bitter trade fight with Brazil over each country's financing of jet exports.
Bombardier, the world's top train maker and the No. 3 manufacturer of civil aircraft, is also the world's leading maker of regional jets, closely followed by Brazil's Embraer SA .
Ottawa's department of international trade said the transaction was structured in accordance with commercial principles and conforms with Canada's international trade obligations.
Funding agency Export Development Canada manages the Canada Account. Transactions under the account require approval by Canada's ministers of international trade and finance. The government assumes the loan risk. (Additional reporting by Luke McCann in Ottawa)