Airbus buys Bombardier out of CSeries programme for US$591m
Airbus has increased its share in the A220 programme to 75 per cent, with the Canadian government’s Investissement Quebec holding the 25 per cent balance.
The deal means Bombardier exits from the former CSeries partnership.
The transaction is effective immediately.
The Canadian government’s stake is redeemable by Airbus in 2026 - three years later than under the previous arrangement.
As part of the deal, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Québec.
This new agreement underlines the commitment of Airbus and the government of Québec to the A220 programme during this phase of continuous ramp-up and increasing customer demand.
Since Airbus took majority ownership of the A220 programme in 2018, total cumulative net orders for the aircraft have increased by 64 per cent to 658 units at the end of January this year.
“This agreement with Bombardier and the government of Québec demonstrates our support and commitment to the A220 and Airbus in Canada.
“Furthermore, it extends our trustful partnership with the government of Québec.
“This is good news for our customers and employees as well as for the Québec and Canadian aerospace industry,” said Airbus chief executive, Guillaume Faury.
“I would like to sincerely thank Bombardier for the strong collaboration during our partnership.
“We are committed to this fantastic aircraft programme and we are aligned with the government of Québec in our ambition to bring long-term visibility to the Québec and Canadian aerospace industry.”
With this transaction, Bombardier will receive a of $591 million from Airbus, net of adjustments, of which $531 million was received at closing and $60 million to be paid over the 2020-21 period.
The agreement also provides for the cancellation of Bombardier warrants owned by Airbus, as well as releasing Bombardier of its future funding capital requirement to Airbus Canada.