Subscribe Free
in Air Transport / Business & Finance

Bombardier C Series deal with Airbus cleared for July 1

Posted 8 June 2018 · Add Comment

Having received all required regulatory approvals, Airbus, Bombardier and Investissement Québec (IQ) have agreed to close the C Series transaction to become effective on July 1, 2018.

 The transaction by which Airbus will acquire a majority stake in the C Series Aircraft Limited Partnership (CSALP) was initially announced in October 2017. The Mirabel-based partnership, which was originally established between Bombardier and IQ, will benefit from Airbus’ global reach, scale, procurement organization and expertise in selling, marketing and producing the C Series – a state-of-the-art jet aircraft family in the 100-150 seat market.

Airbus will work with its partners Bombardier and IQ to fully unlock the C Series’ potential and create significant new value for customers, suppliers, employees, shareholders and the communities in which the partnership operates. The partnership’s head office, primary assembly line and related functions will be based in Mirabel, Québec.

As previously announced, Bombardier will continue with its current funding plan of CSALP. Due to the early closing of the partnership, the terms of this plan are updated according to the following schedule: Bombardier will fund the cash shortfalls of CSALP, if required, during the second half of 2018, up to a maximum of US$225 million; during 2019, up to a maximum of US$350 million; and up to a maximum aggregate amount of US$350 million over the following two years, in consideration for non-voting participating shares of CSALP with cumulative annual dividends of 2%. Any excess shortfall during such periods will be shared proportionately amongst CSALP’s Class A shareholders. Airbus will consolidate CSALP effective from July 1, 2018 onwards. Further financial information on the transaction will be provided later this year.

The C Series program continues to ramp up. Having delivered 17 aircraft in 2017, it is gearing up to double its deliveries in 2018.

With the C Series’ demonstrated in-service performance and the finalization of this partnership, the parties expect increased demand to support a second C Series Final Assembly Line in Mobile, Alabama, dedicated to supplying U.S.-based customers. The C Series is positioned to capture a large percentage of the estimated 6,000 aircraft needed in this market segment over the next 20 years.

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.”

“This marks the beginning of a very exciting new chapter for the C Series and the Canadian Aerospace industry,” said Alain Bellemare, Bombardier President and Chief Executive Officer. “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.”

“By combining the world’s most innovative and efficient aerospace technology – designed and engineered in Québec – with Airbus’ market and expertise, we are creating a brand new dynamic in a promising segment,” noted Québec’s Deputy Premier, Minister of Economy, Science and Innovation and Minister responsible for the Digital Strategy Dominique Anglade. “Above all, we are ensuring the growth of the C Series and securing the more than 2,000 jobs attached to it in Mirabel. In addition to maintaining the C Series’ head office, engineering and R&D activities in Québec, this partnership positions Montréal as Airbus’ largest research and development centre outside Europe, representing tremendous opportunities for our entire aerospace industry.”

“The C Series team in Québec is proud to participate in this opportunity to drive the success of this amazing aircraft,” said Philippe Balducchi, CEO of the C Series partnership. “Our teams have worked tirelessly to merge cultures and bring operations together well ahead of schedule and are confident in our ability to make this win-win partnership a thriving commercial success. The composition of the C Series leadership team reflects our principles of bringing together the best talent that both sides have to offer. We are ready to turn outward and help our customers get their hands on the hottest aircraft in its segment.” 

* required field

Post a comment

Other Stories
Advertisement
Latest News

Joramco signs long-term agreement with Boeing

Boeing through its subsidiary, Boeing Distribution Services (formerly KLX Aerospace Solutions) secured a long-term contract with Joramco last week at MRO Middle East 2019 to provide the aircraft maintenance, repair and overhaul

Turkish Airlines announces first traffic results for 2019

Turkish Airlines recorded 79.5% Load Factor in January. On top of the strong base effect of the last year’ same period, growth in revenue per kilometer has come into prominence as an important indicator of the positive demand environment

Turkish Airlines to increase services to Kinshasa

Turkish Airlines will increase its services to Kinshasa from five flights a week to seven as of March 31, 2019.

Emirates to launch new service to Porto

Emirates has announced it will launch a four times weekly service between Portugal’s second largest city, Porto, and Dubai, from 2 July 2019.

Collins Aerospace redefines research partnerships at IDEX

Collins Aerospace has been highlighting its commitment to training local talent and redefining aerospace research at IDEX 2019 - taking place 17th to 21st February at the Abu Dhabi National Exhibition Centre (ADNEC) - including its

Emirates to link Phnom Penh and Bangkok with new daily service

The service from Dubai to Phnom Penh, via Bangkok, will provide passengers travelling between the capital cities of Cambodia and Thailand with more flight options.

ACCA19_SK0201080919
See us at
Aviation Africa BT0607280219ACCA19_BT2141218280219IQPC 3CACBT290150319SaudiAirshowBT0711140319Connect MEIA BT1402010519