Bombardier, Chinese planemaker in talks
Bombardier has reportedly held talks with the Commercial Aircraft Corporation of China Ltd. (Comac) about a potential investment in the Montreal-based company’s commercial aerospace division. According to a report by the
Financial Times, sources said Comac — China’s state-owned aerospace manufacturer — is working with at least one bank on a deal that could involve an investment in Bombardier’s commercial aerospace division, or a stake in its CSeries program.
A spokesperson for Bombardier said the company would not comment on market rumours or speculation.
Bombardier received $1 billion from the Quebec government for its CSeries program, and the federal government provided a $372.5 million loan towards development of its Global 7000 business aircraft program, as well as the CSeries program.
Earlier this month, Comac’s C919 completed its maiden flight in Shanghai. The aircraft is the first independently developed by China.
“This is not only a major historic breakthrough in China’s aviation industry, but also a significant achievement made by China in deeply implementing the strategy of driving development by innovation and comprehensively promoting the structural reform of the supply said,” Comac said of the maiden flight in a news release.
Bombardier has previously engaged in partnerships with the Chinese manufacturer.
In 2012, Bombardier announced it planned on strengthening its strategic partnership with the company with an agreement that involved collaboration on the development and customer operating efficiencies of the C919 and Bombardier’s CSeries.
Bombardier’s CSeries program is currently at the centre of what could be a major trade dispute between Canada and the U.S.
Last month, American aerospace giant Boeing filed a petition to the U.S. Department of Commerce seeking an anti-dumping, countervailing duty order against the sale of Bombardier’s CSeries aircraft. Boeing has alleged that Bombardier sold the jets to Delta at an “absurdly low” price, well below the cost of manufacturing the jet.