Fascinating Transfer of Bombardier CSeries Airliners to Airbus

The unfolding story of the transfer of Bombardier CSeries CS100 and CS300 airliners to Airbus is one of the most fascinating business cases I’ve ever seen.

A short summary is:

  • The Bombardier CS100 and CS300 are certified airliners financed and developed in Canada
  • Bombardier was essentially bankrupted developing them at a cost of several billion dollars and likely the CSeries would have failed in the marketplace
  • Airbus got 50.1% ownership of them for free, with an option to purchase the remainder in 7 years
  • Bombardier retains two other mature aircraft programs, the CRJ and Q400
  • Airbus hasn’t sold an A319 in 5 years and declined a partnership a few years ago, but couldn’t resist this opportunity. Likely they are eyeing the rapidly-expanding Chinese domestic market
  • Boeing’s lobbying to get 300% tariffs resulted in a partnership that has a direct competitor for the 737
  • Embraer gets direct competitors for their planes.

financialpost.com: Up in the air: With CSeries under Airbus’ control, the path ahead for Bombardier as uncertain as ever

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