Bombardier has completed its strategic exit from commercial aviation by selling its remaining interest in Airbus Canada to Airbus and the Government of Québec, leaving the European airframe maker with a 75% share in the business and the Canadian province holding the balance.
Bombardier work packages for the A220 and A330 will be transferred to Airbus, through its subsidiary Stelia Aerospace. Bombardier will receive US$591M, net of adjustments, of which US$531M was received at closing, and is released of its future funding capital requirement to Airbus Canada. The transaction is effective immediately.
The Québec Government’s stake is redeemable by Airbus in 2026 - three years later than before. As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Québec.
In a statement, Airbus said that this ownership change would enable the continued ramp up in production on the A220 which has increased by 64% since the European firm took majority ownership of the programme on July 1, 2018, with total cumulative net orders for the aircraft standing at 658 units at the end of January 2020.
"This agreement with Bombardier and the Government of Québec demonstrates our support and commitment to the A220 and Airbus in Canada. Furthermore, it extends our trustful partnership with the Government of Québec, “said Airbus chief executive, Guillaume Faury.
With this transaction, Bombardier will receive a$591M from Airbus, net of adjustments, of which $531M was received at closing with $60M to be paid over the 2020-21 period.
The agreement also provides for the cancellation of Bombardier warrants owned by Airbus, as well as releasing Bombardier of its future funding capital requirement to Airbus Canada. “This transaction supports our efforts to address our capital structure and completes our strategic exit from commercial aviation, “saidAlain Bellemare, president and chief executive of Bombardier
Bombardier exits A220 programme, and commercial aviation
