Industry Airbus seals Bombardier deal to merge C Series program by July
Airbus has announced, that it has agreed on a partnership with Bombardier and Investissement Québec to merge the C-Series program.
With the agreement, Airbus will acquire a majority state in the C Series Aircraft Limited Partnership, which will be effective from July 1, 2018. Airbus has announced, that all required approvals for the accomplishment of the transaction have been obtained.
Both Bombardier and Investissement Québec will profit from Airbus´ global reach, its scale, expertise and procurement organization in order to sell and produce the C Series program, which includes the state-of-the-art CS100 and CS300 passenger aircraft. Airbus seeks to unlock the full potential of its partners to ensure the best possible outcomes.
The new partnership creates new value for employees, suppliers, shareholders, customers and the included communities. A head office of the C Series partnership will be built in Mirabel, Québec. Overall, 2200 employees represent the support of the C Series global supply chain.
As the market for the 100-150 seat segment is constantly growing, the venture will help to support the second C Series assembly line in Alabama as well. All aircraft being built there are set to be delivered to US Customers like Delta Air Lines or Republic Airways.
Airbus Chief Executive Officer Tom Enders said: “This partnership extends our commitment to Québec and to all of Canadian aerospace, and we are very glad to welcome so many C Series teammates into the extended Team Airbus. The strength of the entire Airbus organization will be behind the C Series. Not only will that enable this outstanding aircraft to fulfill its market potential, but we are convinced the addition of the C Series to our overall aircraft product offering brings significant value to Airbus, our customers and shareholders.”
Alain Bellemare, Bombardier President and Chief Executive Officer added: “This marks the beginning of a very exciting new chapter for the C Series and the Canadian Aerospace industry [...] The C Series is widely recognized as the most advanced and efficient aircraft in its class and this partnership will ensure its commercial success. Airbus’ unmatched global scale, strong customer relationships and operational expertise are necessary ingredients for unleashing the full value of the aircraft. Together, we will create tremendous new value and opportunities for airlines, suppliers, shareholders and employees.”
In October 2017, the transaction was initially announced by Airbus and Bombardier, after the US announced a 300% import levy on the C Series aircraft for Delta Air Lines. Boeing initially complained, that Bombardier had dumped its C Series jets at low prices.
In recent news, Bombardier and Air Baltic signed a deal for up to 60 CS300 aircraft.
Source © Airbus.com