European giant Airbus to buy majority stake in Bombardier´s CSeries program
(The Star Food)

MONTREAL—European aircraft giant Airbus Group is shaking up the global airline business by buying a majority stake in Bombardier’s CSeries program and assembling the plane in the U.S. to avoid import duties.The two aircraft manufacturers announced the partnership Monday evening, weeks after the United States announced 300 per cent preliminary duties on exports of the aircraft following a complaint from Airbus rival Boeing.The partnership is expected to result in significant CSeries production costs savings by leveraging Airbus’s global supply chain expertise, but the company won’t be paying any money for the acquired stake or absorb Bombardier’s large debt.Read more: Bombardier accuses Trump administration of ‘egregious overreach’ after new tariff put on U.S. CSeries salesBombardier’s CSeries offers ‘unparalleled’ passenger experience. So why hasn’t it taken off?Delta CEO says ‘We will not pay those tariffs’ on Bombardier CSeries orderAirbus will acquire a 50.01 per cent interest in the CSeries Aircraft Limited Partnership, which manufactures and sells the plane in exchange for access to Airbus’s sales, logistics, procurement and support expertise.Bombardier will own 31 per cent and the Quebec government’s investment agency will hold 19 per cent, down from 49.5 per cent when it invested US$1 billion in the program.Airbus can buy out Bombardier after 7.5 years and the Quebec government in 2023.Bombardier CEO Alain Bellemare said Airbus is the perfect partner.“Combining the CSeries with Airbus’s global scale creates a remarkable business, and together we will take the CSeries program to new heights,� he said in a conference call.He said the partnership should more than double the value of the CSeries program by accelerating sales momentum.“It brings certainty to the future of the program so it increases the level of confidence that the aircraft is ther ...