Long-term partners
Airbus, Bombardier say buyout not in the future
MONTREAL — Airbus and Bombardier plan to remain strategic partners on the C Series program even after the European aerospace giant is able to buy out its minority partners, the chief executives of both companies said Friday.
According to terms of the deal announced Monday, Airbus has the option to buy out Bombardier (TSX:BBD.B) in about seven years, and the Quebec government in 2023.
Following a joint appearance with Bombardier CEO Alain Bellemare at the Montreal Board of Trade, Airbus CEO Tom Enders said that’s not the company’s plan.
“We have no intention to buy out the others because we know they are great partners and if they want to stay on the journey going forward they are very welcome to that,” he told reporters.
He said the priority is to close the deal next year that gives Airbus majority control, build a second assembly line in Alabama, sell more aircraft and make the program a huge success.
Bellemare said the Montrealbased company also intends to remain a part of the program, but even if that should change, the agreement ensures that the program will continue to support jobs in Canada until 2041.
“The best guarantee of jobs is to perform,” he said.
Bellemare said Airbus’ support will assuage customers who were worried about the future of the C Series.
He said the result will be many more sales that will benefit Bombardier’s Mirabel, Que., production facility even though a second assembly line will be built in Alabama.
Bellemare reacted forcefully to questions about Airbus not paying any cash for the transaction.
“The point is it’s not coming from dollars, it’s coming from the value that they bring to the program and that is the reason why the value of this program will more than double,” he told reporters.
The aerospace executives and Premier Philippe Couillard travelled to Mirabel to speak with Bombardier employees, who gave them a hearty welcome.
Union representative Dave Chartrand said employees are concerned about the potential negative impact of a second production line in the U.S., but view the partnership with Airbus as the best move to secure the program’s future.