Airbus, Bombardier eye jet deal by May
MONTREAL: Airbus SE and Bombardier Inc aimed to close a deal giving the European planemaker a majority stake in the Canadian company’s CSeries jetliner programme by the end of May, ahead of an initial timetable, two people familiar with the matter told Reuters.
An early closure of the deal would accelerate orders and efforts to reduce costs, the people said.
A third source said the finalisation “is now “very close.”
The deal was originally expected to close in late 2018, and then mid-year, pending regulatory approval.
“The companies have almost completed the process of seeking clearances which must span multiple jurisdictions,’’ one of the sources added.
Airbus is also considering whether to rebrand the CSeries planes as the A200, a fourth source said, confirming an earlier report by Bloomberg.
“This would be a way to leverage the Airbus brand,” the source said.
The rebranding of the 110-and-130-seat CSeries planes as part of the Airbus family would be a response to critics, such as a former Airbus executive who once referred to the two jets as “orphan aircraft.”
All of the sources spoke on condition of anonymity because the talks are private.
An Airbus spokesman cited comments by chief executive Tom Enders who said this month the deal would close by mid-year.
Bombardier said it had no updates to share.
In October last year, Airbus agreed to buy a majority stake in Bombardier’s CSeries jetliner programme, which has performed well but struggled to cut costs and win new orders.
Completion of the venture could kickstart orders from airlines sitting on the sidelines at a time of industry consolidation.
Bombardier said in February there had been a “bit of a pause” in orders for its narrowbody jets as airlines waited for the company to complete the partnership deal.
Separate talks aimed at a tie-up between planemakers Boeing Co and Embraer SA that also involve Brazil’s government “are at an advanced stage,’’ O Estado de S. Paulo newspaper reported on Friday, citing unnamed sources.
The Boeing and Embraer partnership would create a new company in which the US planemaker would have an 80.01% stake and the Brazilian firm 19.99%, the paper said, adding this was a model supported by the Brazilian government.
Boeing, Embraer and Brazil’s Defence Ministry did not have an immediate comment on the report.
The two aircraft manufacturers said in December that they were discussing “a potential combination,” but the Brazilian government, which holds veto power over strategic moves at Embraer, needs to approve the deal.
The paper said one of the points still under discussion was the appointment of a government representative to the board of the new company.
“Boeing is against this, but the Brazilian government is strongly in support of the move,’’ it said.
“The joint venture will only include Embraer’s commercial jet operation, and exclude its defence and executive jet businesses,’’ O Estado said.
Boeing’s initial expectation was to include all three Embraer business units in the tie-up.