Canada’s proposed removal of a luxury tax on business jets may create 600 jobs and boost sales, Bombardier says.

Bombardier CEO Éric Martel said the federal government’s proposed removal of a 10% luxury tax on high-end business jets could boost sales and create about 600 new jobs at Canadian facilities. The tax, enacted in September 2022, had reduced domestic deliveries to two or three per year and deterred buyers, with costs reaching up to $7.8 million per plane. Martel reported renewed customer interest following the budget announcement. Despite a 55% drop in net income to $53 million in the third quarter—due to costs from its discontinued transportation segment—Bombardier’s revenue rose 11% year-over-year to $2.31 billion, driven by 34 plane deliveries and strong services growth. The company’s backlog remains at a five-year high, and it secured a deal with Japan’s Sojitz Corp. for two Global 8000 jets.