Quebec loses a billion dollars
Moderators: sky's the limit, sepia, Sulako, lilfssister, North Shore, I WAS Birddog
-
leftoftrack
- Rank 8
- Posts: 825
- Joined: Fri Jun 21, 2013 3:10 pm
Re: Quebec loses a billion dollars
A quick rejig of transfer payments will have this sorted out in no time.
Liberalism itself as a religion where its tenets cannot be proven, but provides a sense of moral rectitude at no real cost.
-
'97 Tercel
- Rank 8
- Posts: 775
- Joined: Fri Jul 19, 2013 5:19 pm
-
thenoflyzone
- Rank 3
- Posts: 148
- Joined: Sun May 04, 2014 2:19 pm
Re: Quebec loses a billion dollars
That's simply not true. Legault used that line to illustrate the poor way in which that money transfer was handled by the Liberals before him. He would have liked to see more restrictions attached to it. But let's be clear, he would have done more or less the same thing back then. Politics ! Nothing more.
1. Quebec hasn't "lost" 1 billion dollars. The value of that investment is currently unknown, due to the Coronavirus slamming the airlines, and therefore the Airbus/CSeries valuations as well. But it's not 0. Quebec holds a 25% share of the A220 program. That's not worth nothing.
2. As the pandemic passes and airlines return to the skies in greater numbers, the valuation of the A220, and by extension, Quebec's share of it, will increase.
3. Quebec has until 2026 to sell it's stake in the A220 back to Airbus. Chances are by that point it's 25% share of the program will be worth much more that it currently is.
So this is just a fiscal exercise. In this year's budget, the Quebec government had no choice but to write off part of that investment, in light of the ongoing woes of the industry. In next year's exercise, and subsequent years thereafter, it will be a different story.
Let's not forget the A220s future looks bright. Demand for the plane is still strong. Airlines are parking older planes, but are still taking delivery of their A220s, in order to fly their reduced networks in the most efficient way possible. That's a little positive in an otherwise negative outlook on the industry. I'm confident Quebec will get a decent chunk (if not all) of its investment back in a few years. They just have to make sure they hold on to the stock a bit longer and not sell it off like BBD did a few months ago.
1. Quebec hasn't "lost" 1 billion dollars. The value of that investment is currently unknown, due to the Coronavirus slamming the airlines, and therefore the Airbus/CSeries valuations as well. But it's not 0. Quebec holds a 25% share of the A220 program. That's not worth nothing.
2. As the pandemic passes and airlines return to the skies in greater numbers, the valuation of the A220, and by extension, Quebec's share of it, will increase.
3. Quebec has until 2026 to sell it's stake in the A220 back to Airbus. Chances are by that point it's 25% share of the program will be worth much more that it currently is.
So this is just a fiscal exercise. In this year's budget, the Quebec government had no choice but to write off part of that investment, in light of the ongoing woes of the industry. In next year's exercise, and subsequent years thereafter, it will be a different story.
Let's not forget the A220s future looks bright. Demand for the plane is still strong. Airlines are parking older planes, but are still taking delivery of their A220s, in order to fly their reduced networks in the most efficient way possible. That's a little positive in an otherwise negative outlook on the industry. I'm confident Quebec will get a decent chunk (if not all) of its investment back in a few years. They just have to make sure they hold on to the stock a bit longer and not sell it off like BBD did a few months ago.
Last edited by thenoflyzone on Thu Jun 11, 2020 7:12 am, edited 3 times in total.
Re: Quebec loses a billion dollars
Also remember that all those employees pay tax on their incomes... The investment will pay off in spades, I'll bet, but you won't hear about that.
-
Beefitarian
- Top Poster
- Posts: 6605
- Joined: Wed Dec 01, 2010 10:53 am
- Location: A couple of meters away from others.
Re: Quebec loses a billion dollars
Well, I have not seen it. Otherwise I would be posting about my new C-182.
Anyone know where I should look?
Anyone know where I should look?
