Just weeks after it was announced Airbus made acquisition of Bombardier, the company has denied further buying out any CSeries partner. It was predicted that Airbus is looking to buy the minority shares that after the deal is done in 2019. Currently, Airbus has acquired 50 percent shares in the CSeries airplane program of Bombardier. The remaining 31 percent and 19 percent shares still to CSeries partners Bombardier and the Quebec government.
As part of the deal, Airbus had the option to buy to remaining shares of the minority partners. The company was looking to buy the shares of the Quebec Government and Bombardier by 2026 and thus become the sole owner of the entire venture. But Airbus Chief Executive Tom Enders made a joint appearance with Bombardier CEO Alain Bellemare recently and denied any such move by the European aviation giant. According to Enders, the company has no intention to buy out shares and looks to build a strong and long relationship with partners.
Airbus has outlined its priority at this stage which is to get the deal done early next year. One the deal is done; Airbus would get the majority control giving the green signal for building a second assembly line in Alabama. Further, it is looking to make this facility the production home for CSeries jets, selling them and making the whole program a success.
Even with the acquisition, Airbus expects huge competition from Boeing. The competition is going to rough as the market is already dominated by the Boeing 737 Dreamliner today. But Airbus is confident that CSeries will win the duel. The company is also looking boost opportunities in Montreal and Canada. There would be a large aerospace market with benefits to local suppliers, universities, and aerospace training schools.
Airbus has already sent its representative to Washington. The team would highlight the positives from this acquisition to the Trump government. The company looks to create more jobs in the USA, something POTUS Donald Trump has been advocating for a long time now. The sales of CSeries would benefit Bombardier’s Mirabel production facility while the Alabama facility would be supporting it.