Victoria-based utility aircraft manufacturer Viking Air Ltd. is flying high after landing a deal to take over Bombardier’s amphibious aircraft program.
The deal, which is expected to close in coming months, will see Viking take control of manufacturing rights for all of Bombardier’s amphibious aircrafts. The Vancouver Island company will also assume responsibility for servicing Bombardiers fleet of 170 waterbombers that are used to fight fires around the world in 11 countries.
“This acquisition expands Viking’s capabilities in product support and parts into another vital niche aviation segment and ensures that a unique and important Canadian innovation stays in Canada,” said David Curtis, president and CEO of Viking Air, in a press release.
The specific terms and value of the agreement were not disclosed, as Viking Air is a privately held company.
Viking air plans to add 40 people to its workforce in Victoria and Calgary, increasing the number of employees by 10% to help build and service the Bombardier water bombers.
Bombardier has not produced an amphibious aircraft since they suspended the program in December 2015. They chose to sell off their amphibious aircraft program in order to focus more on what they call their “core, higher growth business,” including commercial planes, business jets and rail transportation.
“This transaction supports our goal of rebuilding a clear path to profitable earnings growth and cash generation,” said Alain Bellemare, president and chief executive officer of Bombardier, in a press release.
Bombardier says it plans to move the 50 employees involved in their amphibious aircraft to other parts of their organization after the business is transferred to Viking Air. This comes at a time when Bombardier and its union announced that they intend to cut 200 jobs in its Toronto commercial plane manufacturing facility.
The agreement between Bombardier and Viking Air is national in scope, growing the existing aerospace industry in western Canada while relying on extensive, established supply chains in Ontario and Quebec.
The agreement still requires approval from Canadian regulatory agencies.
