Montreal - Airbus will acquire a majority stake in Bombardier's C Series program and assemble the single-aisle aircraft in Mobile, Alabama, to serve the American customer base.
In an announcement on October 16, Airbus announced an agreement with Bombardier, according to which it will take a majority stake in the program C Series. Airbus will own 50.01% of C Series in a partnership. The Bombardier entity will be responsible for manufacturing and marketing the C Series family aircraft. Bombardier and Investissement Québec, which currently own 62% and 38%, respectively, will have their participation reduced to 31% and 19% respectively. Airbus will provide the new partnership with its purchasing, sales, marketing, and customer support skills.
The headquarters, main assembly line and related functions of the new company SCACS (C Series Aircraft Limited Partnership) will remain in Quebec while benefiting from the international network of Airbus.
The headquarters, main assembly line and related functions of the new company SCACS (C Series Aircraft Limited Partnership) will remain in Quebec while benefiting from the international network of Airbus. A second final assembly line will be opened at the Airbus center in Mobile, Alabama (USA), where A320s are currently being produced.
At the close of the transaction, there will be no cash contribution from any of the partners and SCACS will not assume the financial debt of the program.
For Tom Enders, Airbus' CEO, this is a "win-win" deal for everyone.
On the industrial level, the European aircraft manufacturer believes that its global footprint will have positive effects on aerospace activities in Quebec and Canada. In addition, Airbus' supply chain expertise is expected to significantly reduce the production costs of the C Series family aircraft.
The European manufacturer also counts on its sales, marketing and customer support networks to strengthen and accelerate the commercial dynamics of the C Series.
On the commercial front, Airbus emphasizes that the partnership will enable it to offer two very complementary aircraft in the single-aisle market, which is expected to account for 70% of global demand in the coming years. The C Series offers 100 to 150 seats, and the A320 family offers 150 to 240 seats. The European manufacturer also counts on its sales, marketing and customer support networks to strengthen and accelerate the commercial dynamics of the C Series.
"With their state-of-the-art design and economic performance, the C Series aircraft are the perfect complement to our current family of single-aisle aircraft and will rapidly expand our offering in an ultra-dynamic market," said Tom Enders. "I am confident that our partnership with Bombardier will boost sales and greatly enhance this program. This partnership will secure not only the industrial activities of the C Series in Canada, the UK and China, but also create new jobs in the United States," he added.
Alain Bellemare, CEO of Bombardier, said Airbus is the ideal partner for Bombardier, Quebec, and Canada. "Airbus' global reach, strong customer relationships, and operational expertise are key ingredients to unleash the full value of the C Series. This partnership should more than double the value of the C Series program and ensure that our remarkable aircraft has its full potential," he added