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Report by Julian Sattherthwaite
The CEOs of Airbus and Bombardier meeting in Toulouse, France on Tuesday (October 17, 2017) to discuss a potential arrangement in which Airbus would take a majority stake in the Canadian company’s C-Series jetliner program.
But Boeing was not happy and called it a questionable deal.
Bombardier and Boeing have been at odds since Boeing complained that a deal to sell C-Series Bombardier aircraft to U.S. based Delta airlines was unfairly subsidized by the Canadian government and the deal would impact negatively on Boeing sales.
The U.S. Department of Commerce quickly supported Boeing by announcing that sales of the C-Series could be subject to a 300% duty.
The new deal would see Airbus manufacture the planes for U.S. airlines at Airbus’s Alabama assembly plant thereby circumventing any import penalties.
The deal between Bombardier and Airbus still needs to be approved by the Canadian government but that is not expected to be an issue.
Bombardier said the partnership should more than double the value of the C-Series program.
