China eyes making investment in Bombardier
Bombardier Inc. has reportedly held talks with the Commercial Aircraft Corp. of China Ltd. (Comac) about a potential investment in the Montreal- based company’s commercial aerospace division.
According to a news report by the Financial Times, “several people familiar with the discussion” 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.
“Everything is on t he table,” a source with knowledge of the discussions told the Financial Times.
A spokesperson for Bombardier said it was policy that the company not comment on market rumours or speculation.
Last month, it was also reported that Siemens AG and Bombardier were in talks to combine their train operations to deal with growing competition from China. When asked about the potential joint venture last week, chief executive Alain Bellemare said in a conference call with analysts that the company would not comment about rumours.
“We’re going to look at the entire industry ... and take a proactive approach and that’s what we’ll keep doing moving forward,” Bellemare said.
Bombardier’s commercial aircraft division delivered 15 jets in the first quarter, five fewer than the same time last year. The company said it hopes to deliver between 30 and 35 CSeries jets by the end of the year.
Bombardier’s CSeries program has been plagued by delays over the years. The company received $ 1 billion from the Quebec government for the program, and a $372.5-million loan from the federal government for the development of its Global 7000 business aircraft program and the CSeries program.
Meanwhile, China has set its sights on the aerospace market. Earlier this month, Comac’s C919 — a 150- seat aircraft that was the first independently developed in China — completed its maiden flight in Shanghai.
“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 i nnovation 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.