Airbus wont buy out CSeries after initial partnership deal
The French aerospace giant has the option to buy out the CSeries program in 7.5 years, and the Quebec government in 2023, but has no intention to do so.0
MONTREAL — Airbus chief executive Tom Enders says the company has no plans to buy out the rest of Bombardier’s CSeries program after reaching a deal to take a majority stake on Monday.
According to terms of the deal, Airbus had the option to buy out the CSeries program in 7.5 years, and the Quebec government in 2023.
Airbus says it expects Boeing to throw everything it has got to block Bombardier’s CSeries planes from the U.S. market, making the coming months difficult.
Chief executive Tom Enders told Montreal business leaders Friday that Airbus has already sent lobbyists to Washington to show how the recently-announced partnership between Bombardier and Airbus will create U.S. jobs that President Donald Trump has advocated.
Enders believes Boeing, which launched a trade petition against the CSeries, won’t give up easily.
The Airbus chief says that Airbus will add to Montreal’s large aerospace sector and provide more opportunities for local suppliers, universities and aerospace training schools.
Bombardier CEO Alain Bellemare added that Airbus’ support will assuage customers who were worried about the CSeries’ future.
He says the result will be many more sales that will benefit Bombardier’s Mirabel production facility even though a second assembly line will be built in Alabama.News from © Canadian Press Enterprises Inc. 2016