Bombardier to stop making commercial airplanes after sale to Airbus
On February 13, Montreal-based Bombardier Inc. announced it will stop making commercial airplanes after selling its remaining stake in the A220 program to Airbus.
European manufacturer Airbus will now own a 75 per cent stake in the A220 program after Bombardier's exit.
The Quebec government, which is not injecting any new money into the program, owns 25 per cent.
It's official. Bombardier cuts all remaining ties with the airplane formerly known as the CSeries. Airbus and Quebec taxpayers now own the aircraft pic.twitter.com/i5UmqZsUWr— Paul Vieira (@paulvieira) February 13, 2020
Bombardier will save close to $7oo million U.S. in future capital requirements for the program — a welcome nest egg after Bombardier reported a loss of $1.6 billion U.S. loss for 2019.
The Quebec government will also sell its stake in the A220 project on Jan. 1, 2026.
On Bombardier/Airbus: the QC g’ment now has a set date it will sell its part of the A220 project: Jan 1, 2026. It’s invested $1.3bil and has lost $700mil on that right now. The hope is in 6 years the project will have stronger sales and QC will get it’s ROI @CTVMontreal pic.twitter.com/Lif5sOvuJU— Kelly Greig (@KellyGreig) February 13, 2020
Canadians are divided over the news.
Federal Director Aaron Wudrick pointed out that Canadian taxpayers have taken a hit.
Three years ago, the Trudeau government gave Bombardier $372 million in "repayable loans" for the CSeries.— Aaron Wudrick 🇨🇦 (@awudrick) February 13, 2020
The company now owns zero percent of the project. https://t.co/e6gOI3J7YK
While this Canadian reporter argued that getting out of the A220 project was better than wasting more tax dollars:
I’d like to propose the thesis that Quebeckers were never actually that thrilled about subsidizing Bombardier and that all that’s changed now is the amount required to save it is far beyond any reasonable ask. https://t.co/9qkPVHGQJw— Les Perreaux (@perreaux) February 13, 2020
Bombardier's last two remaining commercial aviation assets are scheduled to close in the first half, the aircraft manufacturer said Thursday.
Coupled with the A220 sale, the deals will generate more than $1.6 billion US for the company.
The company will retain its private business jet division.
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