Bombardier looking at New Mexico

New Mexico, it seems, wants an aerospace industry. First the state said it would put together a proposal for EADS to host its proposed Airbus tanker plant; now it’s reportedly on the short list of sites Bombardier is considering for the factory for its proposed C Series jets.

http://www.kobtv.com/index.cfm?viewer=storyviewer&id=16694&cat=BUSINESS

http://albuquerque.bizjournals.com/albuquerque/stories/2005/01/24/daily18.html

http://www.canada.com/businesscentre/story.html?id=1ccef125-0545-41a6-aeac-2e4de18dc042

You may recall that the Snohomish County Economic Development Council approached Bombardier to see if they’d be interested in coming here. There were two problems with the local bid, it appears:

* Bombardier is looking for several hundred million in government aid to build its new plant, and the state of Washington just cannot hand out cash for projects like that. (The $3.2 billion Boeing 7E7 package, you may recall, involves tax breaks over 20 years after Boeing starts production of the plane.)

* Boeing wasn’t real thrilled with the idea of having Bombardier invading its turf, and let EDC officials know about it through back channels.

The government aid issue is interesting. Bombardier expects it will cost about $2 billion to develop the new C-Series jets, which will seat 110 to 130 people and compete with Boeing’s 737-600 and 737-700 and Airbus’s A318 and A319.

Boeing got the U.S. government to go after Airbus launch aid, hoping to protect the 7E7 by stopping the Europeans from getting easy cash to launch the A350. What will Boeing do to protect its top-selling 737?

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