Just before yesterday’s Bombardier earnings call, it was announced that Bombardier and Airbus had reached an agreement to sell Bombardier’s remaining interest in the A220 (nee CSeries) program. That transaction will leave Airbus and the Government of Quebec as the two shareholders remaining in the program at 75% and 25% respectively.
Bombardier has transferred its share of the program to Airbus and the Government of Quebec for US $591 million, net of adjustments. This will secure more than 3,300 Airbus jobs in Quebec.
Bombardier will also transfer work packages for the A220 and A330 programs to Airbus via its subsidiary Stelia Aerospace to maintain 360 jobs in Quebec currently at the Bombardier St. Laurent facility.
In the process, Bombardier was also relieved of future funding capital requirements of $700 million to Airbus Canada for expansion of the A220 program as it continues to generate new sales and ramps-up. This transaction helps Bombardier address its capital structure and completes the strategic exit from commercial aerospace after transactions with Mitsubishi for the CRJ and DeHavilland Canada for the Q400 programs.