A220: Quebec must avoid repeating the sunk cost fallacy, says the MEI

Montreal, July 14, 2026 – The Quebec government must resist the temptation to sink more funds into the Airbus A220 project, says the MEI in reaction to a recent announcement from Economy Minister Bernard Drainville.

“Quebec taxpayers have already seen $2.1 billion swallowed up by the A220 project, which today has a book value of zero,” says Renaud Brossard, vice president of Communications at the MEI. “Twice already, the CAQ government has fallen for the sunk cost fallacy, throwing more good money after bad to try to recoup its bet.”

In economics, the sunk cost fallacy refers to the tendency of considering the costs already incurred in a project, which are “sunk,” when deciding whether to inject new money. It is also known as the “Concord Fallacy.”

The Quebec government had wagered $1.3 billion in the A220 project in 2015, when it was known as Bombardier’s CSeries.

In February 2022, the Legault government reinjected $380 million in the A220 program, under the pretext that this would allow it to delay the repurchase of its shares in the hope of being able to recover the amounts it had invested over the years.

In February, when it published its financial statements, Airbus estimated the value of the Quebec government’s participation in the A220 program at zero euros.

Despite this, Economy Minister Bernard Drainville said yesterday that his government would be ready to put more money into the A220 program, if Airbus were ready to develop it further.

“The government can try to convince us that this time will be different, but the fact is that the last three wagers are no longer worth anything,” adds Mr. Brossard. “At some point, Quebec will have to realize that it is throwing good money after bad in an attempt to save a bet it has already lost.”

The MEI just last week reiterated that corporate subsidies have grown by 50 per cent since the CAQ government took office. In 2024, they cost $945 per Quebecer.

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The MEI is an independent public policy think tank with offices in Montreal, Ottawa, and Calgary. Through its publications, media appearances, and advisory services to policymakers, the MEI stimulates public policy debate and reforms based on sound economics and entrepreneurship.

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