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| Bombardier gives up A220. Airbus photo |
Airbus, Québec. and Bombardier have agreed on a new ownership structure for the A220 programme, with Bombardier transferromg its remaining shares in Airbus Canada Limited Partnership to Airbus and the Government of Québec. The transaction is effective immediately. As sole owners, Airbus now has a 75 percent share and Quebec 25 percent. Bombardier developed the plane but was driven to the brink of bankruptcy by the spiraling costs of the program. The deal marks Bombardier’s exit from commercial aviation. Bombardier will receive $591 million, net of adjustments, for its stake in the A220 program, of which $531 million was paid at closing with $60 million to be paid in installments through 2021. Bombardier also said the deal will allow it avoid paying roughly $700 million it would have been on the hook for to fund an expansion of production of the 100- to 150-seat single aisle plane. (Sources: multiple, including
Airbus,
Forbes, 02/13/20)
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