Bombardier sells majority stake in CSeries unit to Airbus
Amidst Bombardier’s CSeries jets coming under attack from Boeing, Airbus has now acquired a 50.01% stake in the unit, something that could see the CSeries dodging the 300% import tariffs that have been implemented by the US Department of Commerce.
Airbus and Bombardier will now partner, with Airbus providing procurement, sales, marketing and customer support to CSeries Aircraft Partnership Limited (CSALP), the unit that manufactures the jets.
“We are very pleased to welcome Airbus to the CSeries programme,” said Alain Bellemare, President and Chief Executive Officer of Bombardier Inc.
“Airbus is the perfect partner for us, Québec and Canada. Their global scale, strong customer relationships and operational expertise are key ingredients for unleashing the full value of the CSeries. This partnership should more than double the value of the CSeries programme and ensures our remarkable game-changing aircraft realizes its full potential.”
The CSeries range will compliment Airbus’ existing portfolio well, with the firm specialising in the higher end of the single-aisle business at approximately 150-240 seats, whilst the CSeries jets range from 100-150 seats.
"This is a win-win for everybody! The CSeries, with its state-of-the-art design and great economics, is a great fit with our existing single-aisle aircraft family and rapidly extends our product offering into a fast growing market sector. I have no doubt that our partnership with Bombardier will boost sales and the value of this programme tremendously,” said Airbus Chief Executive Officer Tom Enders.
CSALP’s headquarters and production facilities will remain in Québec, despite the majority of Airbus’ operations being European, with the firm’s headquarters located in Toulouse, France.
“The arrival of Airbus as a strategic partner today will ensure the sustainability and growth of the CSeries programme, as well as consolidating the entire Québec aerospace cluster,” said Québec’s Deputy Prime Minister, Minister of Economy, Science and Innovation and Minister responsible for Digital Strategy, Dominique Anglade.
Bombardier will now own 31% of the remaining stake, whilst shareholder Investissement Québec will lay claim to 19%.