Setback for Flying Whales’ Canadian manufacturing plans

The Flying Whales heavy cargo airship project in Quebec has suffered a major delay. The provincial government decided to halt funding for the factory, citing "very high" costs and limited local benefits. [1]

Here are the key details of the setback:

There is uncertainty in the air regarding the future of a planned cargo airship assembly centre in  Quebec's Eastern Townships, after the province hit pause on funding.

Last year, French start-up Flying Whales reached an agreement in principle with the City of Sherbrooke, Cookshire-Eaton and Sherbrooke's airport to build a 50-hectare site to assemble, test, and launch airships on the grounds of the airport.

The future airships that work as cranes are meant for transporting cargo and large loads like wind turbine blades, transmission towers, large equipment and materials. Quebec has already invested $75 million into the company which is slated to create 300 jobs in the Sherbrooke area.

In a statement to CBC News, Economy Minister Bernard Drainville said the province would not participate in the current round of funding, "as the financial requirements remain very high and the direct economic benefits for Quebec are limited."

The future of a major economic project slated for construction in the Townships is uncertain. The Quebec government has decided not to invest in the latest round of Flying Whales — a french airship start-up. The decision now has some questioning the government's commitment to the project, which is expected to being 300 jobs to Sherbrooke. We hear from the Sherbrooke mayor and the president of the Quebec branch of the company. 

The company's Quebec president Vincent Guibout says discussions are ongoing with the government, but losing funds could have a big impact.

"Obviously the program and the delivery of the program, which is almost over, will continue and we will have the airship flying soon," he said. "But the deployment of the manufacturing line in Quebec and of the airship in Quebec will be delayed and I think it's a shame." Guibout added that it could go further than that if Quebec doesn't see the benefits of the project.

"If Quebec is saying 'I'm not interested in the project,' I don't see any reason to put a final assembly line in Quebec," he said. Sherbrooke Mayor Marie-Claude Bibeau told CBC's Daybreak the Quebec government's decision is not surprising, explaining the funding would have gone towards a plant in France.

"But it doesn't mean that whenever they are ready to invest in Quebec that the government of Quebec wouldn't be there," Bibeau said. She added the ongoing developments in France will likely be watched closely and be evaluated to see what works and what doesn't to help guide future decisions.

Bibeau said she's met with Premier Christine Fréchette's team to help find a solution and hopes to meet with the company's leaders when she visits France next week.

The government meanwhile said it remains a shareholder and continues to monitor the project’s progress.

• Funding Refusal: The Quebec government declined to participate in the current round of funding, refusing to invest further public money. The province previously invested CAD 100 million (USD 72.4 million) through Investissement Québec. [1]

• The Project: Flying Whales is a French aerospace company developing the LCA60T, a massive, 200-meter-long rigid airship designed to carry payloads of up to 60 tonnes. It is aimed at transporting massive cargo to remote locations without airports. [1, 2]

• Factory Delay: The company planned to build a CAD-based assembly hub in Sherbrooke, Quebec, to serve North and South America. Without government buy-in, this manufacturing and final assembly line is indefinitely delayed. [1, 2]

• Next Steps: While discussions between Flying Whales and the government are ongoing, parent company Flying Whales is moving forward with its primary production lines in France. [1, 2]