Court to hear Kuwait appeal

MONTREAL — Bombardier’s (TSX:BBD.B) efforts to manoeuvre through a global economic slowdown were shaken Thursday after the Supreme Court of Canada gave life to a lawsuit by Kuwait that could decide the fate of an aircraft order the industrial company won from Iraq.

MONTREAL — Bombardier’s (TSX:BBD.B) efforts to manoeuvre through a global economic slowdown were shaken Thursday after the Supreme Court of Canada gave life to a lawsuit by Kuwait that could decide the fate of an aircraft order the industrial company won from Iraq.

The Montreal-based manufacturer said it would suffer financial harm if it is unable to deliver a firm order for 10 CRJ900 NextGen aircraft to Iraq with a total list price of US$398 million. The contract would rise to US$573 million if options for 10 additional aircraft are exercised.

“We could be impacted significantly by financial setbacks and layoffs if the agreement continues to be imperilled like that,” spokesman Marc Duchesne said in an interview.

Bombardier last fall shipped the first of 10 CRJ900 NextGen regional jets ordered by the Iraqi government in March 2008. It was able to deliver the aircraft before a court order was reinstated preventing other planes from being shipped to the Middle East.

Duchesne wouldn’t say how many of the ordered aircraft have been completed, nor where they are being kept.

On Thursday, the high court granted leave to appeal a Quebec Court of Appeal’s ruling dismissing Kuwait Airways’ efforts to recognize a British judgment that would allow it to seize Iraqi government assets in Canada, including two Quebec properties.

The order may have been salvaged had the court refused to hear the case.

At issue is Iraq’s ability to claim jurisdictional immunity involving a foreign judgment.

Just Posted

Chemical analysis may provide clues to cause of huge Red Deer industrial fire

Fire on April 17 caused $9 million in damage to oil and gas industrial building

New loonie reason to celebrate and educate: central Alberta LGBTQ community

The new LGBTQ2 loonie is a conversation starter and a reason to… Continue reading

C & E Trail property owner wants to use land as RV storage yard

Red Deer city council gives initial approval

Indigenous cultural centre needed in Red Deer

Urban Aboriginal Voices Society hosts annual community gathering

Red Deer youth recognized for his compassion

Blackfalds man dies after vehicle collision

MISSING: Joshua Arthur Sanford

37-year-old Ponoka man last seen on Tuesday morning

Inspired by a galaxy far, far away, these ‘Star Wars’ mementos could be yours forever

CHICAGO —The stuff of “Star Wars” —and there is unfortunately no better… Continue reading

Shoppers Drug Mart launches second online medical pot portal in Alberta

TORONTO — Medical cannabis users in Alberta can now get their therapeutic… Continue reading

Taylor Drive honours legacy of outstanding community volunteer

The main roadway going north and south on the west side of… Continue reading

Oh, yes! Nurse, Raptors look to finish series with Magic

DENVER — In response to an early call, Toronto coach Nick Nurse… Continue reading

Delay of game calls, goalie interference top worst rules for NHLers: survey

The pace and excitement of 3-on-3 overtime isn’t just a thrill for… Continue reading

Avengers get epic send-off at ‘Endgame’ world premiere

LOS ANGELES — There were more than a few sniffles from the… Continue reading

Writers’ Trust launches program pairing rising writers with established mentors

TORONTO — The Writers’ Trust has launched a program that gives five… Continue reading

Most Read