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 The aerospace division was launched with the 1986 acquisition of Canadair, at the time owned by the Goverment of Canada and a company that had recorded the then largest loss in history of any Canadian corporation.

Politically, the Federal Government could not allow the Montreal, Quebec based company to close, and any hints that it might do so were met with media stories of the Government's Avro Arrow disaster.

After acquiring Canadair and restoring it to profitability, Bombardier acquired in 1989 the near-bankrupt Short Brothers aircraft manufacturing company in Belfast, Northern Ireland. This was followed in 1990 by the acquision of the bankrupt Learjet Company of Wichita, Kansas, builder of the world-famous Learjet business aircraft and finally the money-losing Boeing subsidiary de Havilland Aircraft of Canada based in Toronto, Canada in 1992.