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                  China Daily

                  News> Business> Content
                  Thursday, February 13, 2020, 14:39
                  Airbus to buy rest of Bombardier stake in A220 program
                  By Bloomberg
                  Thursday, February 13, 2020, 14:39 By Bloomberg

                  The Airbus logo is seen at its stand during the the 70th annual International Astronautical Congress at the Walter E. Washington Convention Center in Washington, DC on Oct 22, 2019. (MANDEL NGAN / AFP)

                  PARIS - European planemaker Airbus (AIR.PA) has reached a deal to buy the remaining stake of Canadian plane and train maker Bombardier (BBDb.TO) in the A220 passenger jet program, it said on Thursday.

                  The deal signals Bombardier’s exit from commercial aviation by transferring its remaining interest in Airbus Canada to the main parent Airbus SE company and the government of the Canadian state of Quebec.

                  Bombardier will receive US$591 million, net of adjustments, and will no longer have future funding capital requirements to Airbus Canada

                  ALSO READ: Bombardier delivers first Global 7500 corporate jet

                  Bombardier will receive US$591 million, net of adjustments, and will no longer have future funding capital requirements to Airbus Canada. The deal will secure more than 3,300 Airbus jobs in Quebec, the companies added.

                  Bombardier added that the transaction would also help the company - which faced a cash crunch in 2015 - improve its overall financial position.

                  “This transaction supports our efforts to address our capital structure and completes our strategic exit from commercial aerospace,” said President and Chief Executive Alain Bellemare.

                  READ MORE: Malaysia to probe if AirAsia broke rules in Airbus deals

                  Sources have told Reuters that Bombardier’s rail unit may also be sold to French group Alstom (ALSO.PA), although any deal between Alstom and Bombardier has yet to be finalised.

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