Airbus To Revive C-Series

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Airbus and Bombardier announced Monday that the European aerospace giant will assume a 50.01 percent interest in the Bombardier CSeries jet program. To keep it afloat, the CSeries program required a $1.25 billion investment last year by the province of Quebec, which will continue to own 19 percent, with Bombardier owning the remaining 31 percent.  Bombardier shares rose as much as 26 percent the day after the bombshell announcement. Airbus CEO Tom Enders told a news conference that some airlines had been reluctant to buy the CSeries jets because of fears the program would collapse. With the resources of Airbus behind it, Bombardier and Airbus expect big gains in what had been lagging sales of the jet. Airbus did not have to put up any cash or assume debt in the deal.

The biggest hiccup yet for the CSeries had been a series of rulings subjecting sales of the jets to a 300% tariff in the U.S., which, if upheld, would have effectively closed off one of the largest markets for the airplanes. Those ruling came out of complaints made by Boeing that Bombardier was dumping the aircraft in the United States at below-market prices. Airbus has said they will set up a second production line at Airbus’ Mobile, Alabama, facility, which would likely protect the CSeries from U.S. tariffs. News of the deal was not warmly received by Boeing. "This looks like a questionable deal between two heavily state-subsidized competitors to skirt the recent findings of the U.S. government. Our position remains that everyone should play by the same rules for free and fair trade to work," said Boeing spokesman Dan Curran. 

Comments (7)

Airbus will lose a minimum of $2 billion, just in fulfilling the AA order of 75 planes. I guess we'll all see just how deep their pockets are.

Posted by: Tom Yarsley | October 17, 2017 4:16 AM    Report this comment

I'm not sure if this is a win for Bombardier, but I think Boeing just got poked with their own stick! Airbus has definitely dealt Boeing an embarrassing blow.

Posted by: John Nevils | October 17, 2017 7:18 AM    Report this comment

aa does not have orders for the cseries. dal does.

very happy to see this. boeing had this coming. time to innovate and not force an antiquated product on everyone because they cant compete.

Posted by: Jonathan Butkovic | October 17, 2017 9:48 AM    Report this comment

Mr. Curran's comments ring pretty empty. Boeing gets massive tax breaks in every state they operate in, and have offered as much as 75% discounts to various US airlines. This Airbus / Bombardier deal finally allows the C-series to play by the same rules that Boeing enjoys.

Posted by: GERRY VAN DYK | October 17, 2017 10:28 AM    Report this comment

"Boeing just got poked with their own stick!" Well said, Boeing forced this action in part with their charges against Bombardier. Well they don't have to worry anymore now that final assembly will take place in the USA!

Posted by: Thomas Wiley | October 17, 2017 10:29 AM    Report this comment

And the damage goes further.. Boeing is now on the (ahem) list in Canada, the UK and Ireland (where "C Series" components are manufactured. ) Not to mention that the US airlines are not very happy with them. In what has been a dog eat dog marketing battle with Airbus, they shot themselves in the foot. And, the US government also stumbled into the street as well with their ridiculous tariff.

The US market is big, for sure, but there is also the rest of the world. Protectionist policies can hurt your home industries, and this is clearly one example. Trying to keep a modern efficient tool away from US airlines is a policy that will not gain friends among your US customers . Boeing has no competitor to match the C Series product, and now this "threat" has a massive world wide marketing and production force behind it. (!)

Massive corporate blunder.....

Posted by: Dave Gamblin | October 18, 2017 3:35 AM    Report this comment

And the damage goes further.. Boeing is now on the (ahem) list in Canada, the UK and Ireland (where "C Series" components are manufactured. ) Not to mention that the US airlines are not very happy with them. In what has been a dog eat dog marketing battle with Airbus, they shot themselves in the foot. And, the US government also stumbled into the street as well with their ridiculous tariff.

The US market is big, for sure, but there is also the rest of the world. Protectionist policies can hurt your home industries, and this is clearly one example. Trying to keep a modern efficient tool away from US airlines is a policy that will not gain friends among your US customers . Boeing has no competitor to match the C Series product, and now this "threat" has a massive world wide marketing and production force behind it. (!)

Massive corporate blunder.....

Posted by: Dave Gamblin | October 18, 2017 3:37 AM    Report this comment

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