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Daily Insight: Monday 18 March 2019: What’s behind a Name Change

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News

Airbus has changed the name of its partnership with Bombardier from CSeries Airbus Limited Partnership to Airbus Canada Limited Partnership.  Airbus indicated that the new name reflects the majority interest that Airbus holds, and will enable the organization to adopt the Airbus logo as its identity.

Give that this partnership is about the CSeries, now re-named the A220, would not a name like A220 Airbus Limited Partnership have better reflected the scope of the partnership? Alternatively, did Airbus

choose a broader name to enable future growth?  Is there something more behind the name change?

Analysis

Airbus Canada Limited Partnership may be an initial step to what could eventually be called Airbus Canada, especially if additional minority portions of the partnership are eventually acquired by Airbus.  When it comes down to decisions on what to offer customers, wouldn’t Airbus prefer to offer the A320 than the A220, given that it has a full interest in the former versus just over 50% of the latter?  Which contributes better to the bottom line, and would therefore generate a higher priority in Airbus marketing campaigns?  Buying out the Canadian Government and Bombardier could provide a higher return if the aircraft continues to be successful and generate additional orders.