Under-pressure Bombardier seeking investors for aerospace business
According to Bloomberg, Bombardier is currently exploring the idea of selling some of its aerospace assets, with the firm’s financial turnaround plan currently under pressure from the US with the crippling tariffs that are being imposed upon the Canadian firm.
Bombardier is apparently looking at selling its Q400 turboprop and its Canada Regional Jet (CRJ) units, with Bloomberg reporting that Airbus SE are amongst those interested.
This comes shortly after the Canadian company inked a $1.7bn deal with SpiceJet that will see the Indian firm take 50 of the Q400 aircraft.
The move is to try keep Bombardier’s finances secure, with the firm having suffered a number of setbacks of late. Its CSeries jets came to the market two years behind schedule and $2bn over budget, which now also face 300% in US import duties, whilst elsewhere the company also recently failed to secure a merger of its rail business with Siemens AG’s operations, despite months of negotiations.
However, certain sales, combined with Delta stating that they will proceed to purchase the CSeries jets, could get Bombardier’s five-year financial turnaround get back on track, having considered filing for bankruptcy back in 2015.
The firm saw 57% of its total revenue come from its aerospace business last year.