Saturday, January 18, 2020

Bombardier may exit A220 venture

Bombardier Inc. said it may exit a joint venture with Airbus to build the A220 passenger jet because rising production costs threaten future returns on its investment. Bombardier said the need for additional cash to finance the production of the commercial jets in Mobile, Ala., may undermine any prospect of future profits. Bombardier agreed to give control of its CSeries jets to Airbus in 2017 for no money upfront to rescue it. Airbus renamed the single-aisle aircraft the A220. An Airbus spokesman said it “remains committed to the success of the A220 program and will continue to fund the program on its way to break-even.” Airbus delivered 48 of the aircraft to customers last year, leaving its backlog at 495 aircraft as of Dec. 31. Airbus officially began manufacturing the A220 in Mobile in August 2019. The first U.S.-made A220-300 will go to Delta Air Lines and is scheduled for delivery in the third quarter of 2020. (Sources: multiple, including Wall Street Journal, Montreal Gazette, AirlineRatings, 01/16/20)