Canada gives $173 million loan to Swedish SAS
OTTAWA (AFP) - The Canadian government announced Wednesday a loan of 173 million US dollars to help manufacturer Bombardier deliver up to eight Q400 and CRJ900 aircraft to Sweden's Scandinavian Airlines (SAS).
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The funds are to be offered through the government agency Export Development Canada to SAS, Trade Minister Stockwell Day said in a statement. They are conditional on a firm sales agreement being reached between Bombardier and SAS, he added.
Bombardier's relations with SAS briefly soured in October 2007 after the airline grounded its fleet of 27 Bombardier short haul Dash 8 Q400 aircraft following a series of accidents involving landing gear.
Preliminary investigations pointed to parts corrosion, not design flaws.
The two companies eventually settled on compensation for SAS for problems with the aircrafts. SAS also planned to order new planes.
SAS Group is half-owned by Sweden, Norway and Denmark and listed on the Stockholm stock exchange.
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Last Updated (Wednesday, 05 August 2009 23:11)
