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April 4, 2008

Plattsburgh out of the running for Bombardier aircraft assembly plant

Area can't afford to court Canadian firm for plant site

By DAN HEATH

PLATTSBURGH -- An opportunity to bring a Bombardier aircraft-assembly plant to Plattsburgh has been abandoned.

Plattsburgh-North Country Chamber of Commerce President Garry Douglas said Plattsburgh was one of dozens of possible sites initially identified by Bombardier and its site consultants for its new CSeries aircraft.

"In the case of the CSeries, however, the size and terms of the venture are simply beyond our capacity," Douglas said. "Bombardier is seeking for the host state or country to become a direct partner in the operation, involving hundreds of millions of dollars in exchange for a share of sales revenues. New York state is simply not able to do that, which we fully understand."

The Montreal Gazette reported Wednesday that one industry source said Bombardier is asking for $750 million (U.S. funds) in incentives from the state or province that wants the facility.

Proposed locations for the final-assembly plant include Mirabel International Airport near Montreal and Kansas City International Airport.

In February, Mark Duschene of Bombardier Aerospace's Public Relations and Communications Department confirmed the company was talking with state and city officials in the United States but would not be more specific. He said Mirabel was the company's preferred site at that time.

The company originally proposed to do cockpit and final-assembly work in the Montreal area and wing assembly at its facility in Belfast, Northern Ireland.

The Toronto Globe and Mail reported in February that the Canadian, Quebec and British governments had agreed to provide $260 million, $110 million and $340 million, respectively.

The project is expected to create 2,500 jobs in Montreal and 2,000 in Belfast.

Bombardier allowed its sales people to start offering its new CSeries aircraft in February. Information from the Bombardier Web site indicates the new 110- and 130-seat aircraft would feature a mainly composite and aluminum-lithium alloy structure.

The aircraft are touted by the company as providing up to a 20-percent reduction in fuel burned, improved noise and emissions reductions and up to 15-percent lower operating costs.

Bombardier previously said in a press release that the CSeries aircraft family is designed for the lower end of the 100-to-149-seat market segment, which is estimated at 5,900 aircraft, valued at $250 billion, during the next 20 years. The company's target is to capture at least half that market.

A decision on whether to commence manufacture of the aircraft is expected by the end of 2008.

Douglas sees a positive side to the situation.

"When it comes to aerospace, Plattsburgh is now very much on the radarscope. Other moderate-sized ventures will in fact come into play, and we also have reason to believe that, sooner or later, Bombardier Aerospace will in fact find Plattsburgh International Airport useful for some support function tied to Montreal."

dheath@pressrepublican.com

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