Boeing To Invest $240 Million CAD in Québec Aerospace Innovation Initiatives, Including $95 Million CAD in Subsidiary Wisk Aero

The investments are part of Boeing’s Industrial and Technological Benefits commitment to Canada for its selection of Boeing’s P-8A Poseidon aircraft to fulfill the country's long-term multi-mission aircraft role.

(Québec, Canada) Boeing Co. (NYSE: BA) today announced plans to invest a total of $240 million CAD ($175 million USD) in several Québec-based aviation initiatives, including a $110 million CAD anchor investment for the Aerospace Development Centre in Québec's new Espace Aéro Innovation Zone, $95 million CAD dedicated to advancing the development of Boeing's wholly owned subsidiary Wisk Aero’s autonomous, passenger carrying electric vertical takeoff and landing (eVTOL) air taxi and $35 million CAD for advanced landing gear research in partnership with Héroux-Devtek.

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Photo of Quebec Premier François Legault (right) and Minister of Innovation, Science and Industry Francois-Philippe Champagne, sitting in a Wisk autonomous electric vertical takeoff and landing (eVTOL) air taxi yesterday (Tuesday, May 21) at Aéro Montréal's International Aerospace Innovation Forum, courtesy of Christinne Muschi/The Canadian Press via CBC News.

The investments are part of Boeing’s Industrial and Technological Benefits commitment to Canada for its selection of Boeing’s P-8A Poseidon maritime patrol aircraft to fulfill the country's long-term multi-mission aircraft role, according to today's press release from Boeing.

Yesterday (Tuesday, May 21), Aéro Montréal kicked off the 9th edition of its International Aerospace Innovation Forum, the largest gathering of international aerospace decision-makers in Canada, with the announcement of the designated Espace Aéro aerospace innovation zone, for which Aéro Montréal will be responsible for implementation and governance.

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Photo of Quebec Premier François Legault speaking at the International Aerospace Innovation Forum in Montreal yesterday (Tuesday, May 22), courtesy of Christinne Muschi/The Canadian Press via CBC News.

According to yesterday’s press release from CNW Group, the successful completion of the Espace Aéro project is the result of four years of coordinated work by Aéro Montréal, its industrial and institutional partners, and the cities of Montréal (borough of Saint-Laurent), Longueuil and Mirabel to create an essential innovation ecosystem that will attract world-class investors and collaborators.

Total investments for the innovation zone are worth $415 million, with the Quebec government contributing $85 million, according to CBC News.

Per CBC News, Boeing is expanding its sizeable footprint in Canada by becoming the anchor tenant of the innovation zone project, thereby bolstering its presence in Canada, where it already has more than 500 suppliers. Boeing's $240-million investment makes up the bulk of the $330 million non-government funds that come from a number of companies, including RTX Corporation’s (NYSE: RTX) Pratt & Whitney Canada, Airbus (AIR.PA), Bombardier (TSE: BBD.B), Flying Whales Québec and Thales (HO.PA) Canada.

According to today’s press release from Boeing, the company is assessing additional projects to locate in Quebec’s Espace Aéro which are aligned with the zone’s technology development priorities of decarbonization and autonomy.

“Quebec's aerospace capabilities are recognized worldwide, and we are excited to partner with the province on new initiatives that will generate cutting-edge technologies, drive economic growth and support decarbonisation of aviation,” said Dr. Brendan Nelson AO, President of Boeing Global. “These investments serve as a testament to Canada's aviation leadership and exemplify Boeing's unwavering commitment to the country, where we have been driving innovation and fostering collaboration across the nation for over a century.”

The Honourable François-Philippe Champagne, Canada’s Minister of Innovation, Science and Industry, commented: “Today's announcement is all about Canada’s economic benefits policy at work. It's not just about procuring Boeing's P-8 Poseidon. With this state-of-the-art Aerospace Development Centre, Canada will also benefit from Boeing's strategic investments in leading Canadian firms. Coupled with Québec‘s Innovation Zone, this will attract top-tier industry players, creating good jobs and countless opportunities.”

As for its investment in Wisk, Boeing initially invested $450 million with the autonomous eVTOL developer in 2022, prior to fully absorbing the company last year, in 2023.

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Photo of Wisk's autonomous eVTOL aircraft courtesy of eVTOL Insights.

According to Wisk’s website, Wisk operates a separate entity from Boeing, but utilizes Boeing’s resources such as development, testing, and certification expertise, per Wisk’s website.

Wisk completed its first public demonstration flight of a fully autonomous, electric vertical take-off and landing fixed-wing air taxi at the Experimental Aviation Association’s (EAA) AirVenture event in Oshkosh, Wisconsin on July 25, 2023; the flight was autonomously operated and monitored from Wisk’s headquarters in California, and the demonstration was performed by the company’s fifth-generation eVTOL technology demonstrator, Cora, per Aviation Week.

Shares of Boeing Co. (NYSE: BA) are trading at 186.00, up 0.68% today - despite broader market declines - as of the time of publication of this article (3:16pm), and have risen 9.94% over the last month.

** Not investment advice; The FLY Report is not a registered investment advisor.

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