Airbus has reached an agreement with Bombardier and Investissement Québec (IQ) to complete the purchase of C Series aircraft next month, after receiving the necessary regulatory approvals.
Airbus will own a majority stake in the C Series Aircraft Limited Partnership (CSALP), established by Bombardier and IQ to manufacture and sell C Series aircraft.
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The deal is based on an agreement signed by the parties last October.
Under the terms of the deal, CSALP’s head office, primary assembly line and related functions will continue to be based in Mirabel, Québec, Canada.
Due to the early closure of the deal, Bombardier will fund the cash shortfalls of CSALP, if required, during the second half of 2018, up to $225m.
During 2019, the company will provide a maximum of $350m and the same amount over the following two years, in consideration for non-voting participating shares of CSALP with cumulative annual dividends of 2%.
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By GlobalDataAny additional shortfall will be proportionately shared amongst the Class A shareholders of CSALP.
Completion of the deal will help establish a second C Series Final Assembly Line in Mobile, Alabama, US.
Airbus CEO Tom Enders said: “This partnership extends our commitment to Québec and to all of Canadian aerospace, and we are very glad to welcome so many C Series teammates into the extended Team Airbus.
“The strength of the entire Airbus organisation will be behind the C Series.
“Not only will that enable this outstanding aircraft to fulfil its market potential, but we are convinced the addition of the C Series to our overall aircraft product offering brings significant value to Airbus, our customers and shareholders.”
The C Series family of aircraft caters to the 100-150 seat market segment.
Last year, Bombardier delivered 17 C Series aircraft, and expects to double the volume this year with the latest deal.
