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| Bombardier C Series jetliner. Courtesy photo |
Airbus SE agreed to acquire a majority stake in Canada’s Bombardier Inc.’s C Series jetliner program, and will add another final assembly line for the C Series at its plant in Mobile, Ala. The move breathes new life into a slow-selling C Series, a single-aisle plane typically seating 108 to 160 passengers. Under the agreement, Airbus will provide procurement, sales and marketing, and customer support expertise to the C Series Aircraft Limited Partnership (CSALP), the entity that manufactures and sells the C Series. At closing, Airbus will acquire a 50.01 percent interest in CSALP. Bombardier and Investissement Québec (IQ) will own approximately 31 percent and 19 percent respectively. CSALP’s headquarters and primary assembly line and related functions will remain in Québec, with the support of Airbus’ global reach and scale. Airbus’ global industrial footprint will expand with the Final Assembly Line in Canada and additional C Series production at Airbus’ manufacturing site in Alabama. Neither company will contribute cash to the venture at the closing, nor will the combination assume any debt. The transaction is expected to be completed in the second half of next year. The move comes within weeks of Bombardier being hit by a 300 percent import levy by the United States after a complaint by Boeing. “I have no doubt that our partnership with Bombardier will boost sales and the value of this program tremendously,” said Airbus Chief Executive Officer Tom Enders. “Not only will this partnership secure the C Series and its industrial operations in Canada, the U.K. and China, but we also bring new jobs to the U.S. Airbus will benefit from strengthening its product portfolio in the high-volume single-aisle market, offering superior value to our airline customers worldwide.” (Sources:
Airbus,
Bloomberg,
The Guardian, 10/16/17)
