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Airbus takes control of Bombardier CSeries

Staff Writer |
Airbus has agreed to buy a majority stake in Bombardier’s CSeries jetliner program, giving a powerful boost to the Canadian plane and train maker in its trade dispute with Boeing.

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The deal, which would come at no cost for Europe’s largest aerospace group, would give Airbus a 50.01 percent interest in CSeries Aircraft Limited Partnership (CSALP), which manufactures and sells the jets, the companies said.

While Bombardier will lose control of a plane program developed at a cost of $6 billion, it gives the CSeries improved economies of scale, a better sales network and, crucially, could change the power balance in the trade dispute with Boeing.

The 110-to-130 seat plane, which has not secured a new order in 18 months and is being threatened by a possible 300 percent duty on U.S. imports, would be built for U.S. airlines at Airbus’s Alabama assembly plant, circumventing any import penalties in a move that apparently caught Boeing off guard.

Bombardier said the partnership should more than double the value of the CSeries program.

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