Design Engineering

Airbus to put pressure on CSeries suppliers for lower prices

The Canadian Press   

General Aerospace airbus Bombardier CSeries

Airbus executive Klaus Richter says the company took a gamble with Bombardier and believes this move will help make Quebec aircraft manufacturer profitable.

Airbus Bombardier partnershipTOULOUSE, France — Airbus intends to pressure suppliers for Bombardier’s CSeries jets to lower their prices in an effort to make its new partnership with the Quebec aircraft manufacturer profitable.

Airbus executive Klaus Richter made the comment today alongside Quebec Premier Philippe Couillard.

It came after Couillard, on an official trip to France, toured the facilities of the European aerospace giant in Toulouse.

Richter says the French-based company took a gamble by taking over the CSeries, which is currently not profitable.


He says Airbus will try to sell the planes first and then rework the costs with suppliers, because currently there is a gap between production cost and sale price.

Richter says the company intends to focus on volume to successfully reduce supplier prices and will hold its next major international gathering of suppliers in October in Montreal.

The European conglomerate is working to finalize its partnership with Bombardier and the Quebec government to produce the CSeries aircraft.

Under the terms of the deal announced last fall, Airbus will hold 50.01 per cent of the new partnership.

Bombardier will retain 31 per cent while the Quebec government will hold 19 per cent.


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