{"id":7579,"date":"2020-02-17T21:09:47","date_gmt":"2020-02-18T03:09:47","guid":{"rendered":"http:\/\/planesintheair.com\/?p=7579"},"modified":"2020-02-17T21:09:47","modified_gmt":"2020-02-18T03:09:47","slug":"airbus-and-government-of-quebec-become-sole-owners-of-the-a220-program","status":"publish","type":"post","link":"https:\/\/planesintheair.com\/?p=7579","title":{"rendered":"Airbus and Government of Qu\u00e9bec Become Sole Owners of the A220 Program"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"422\" src=\"https:\/\/planesintheair.com\/wp-content\/uploads\/2020\/02\/a220-300pwacav06750xx8936-5032-0-297.jpg\" alt=\"\" class=\"wp-image-7582\" srcset=\"https:\/\/planesintheair.com\/wp-content\/uploads\/2020\/02\/a220-300pwacav06750xx8936-5032-0-297.jpg 750w, https:\/\/planesintheair.com\/wp-content\/uploads\/2020\/02\/a220-300pwacav06750xx8936-5032-0-297-300x169.jpg 300w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/figure>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Bombardier transfers its remaining interest in Airbus Canada Limited Partnership (Airbus Canada) to Airbus SE and the Government of Qu\u00e9bec<\/strong><\/li><li><strong>Airbus now holds 75 percent of Airbus Canada with the Government of Qu\u00e9bec increasing its holding to 25 percent for no cash consideration<\/strong><\/li><li><strong>Bombardier work packages for the A220 and A330 will be transferred to Airbus, through its subsidiary Stelia Aerospace, securing 360 jobs in Qu\u00e9bec<\/strong><\/li><li><strong>Bombardier will receive US$591M, net of adjustments, of which US$531M was received at closing, and is released of its future funding capital requirement to Airbus Canada<\/strong><\/li><li><strong>Over 3,300 Airbus jobs secured in Qu\u00e9bec<\/strong><\/li><\/ul>\n\n\n\n<p>Amsterdam \/ Montreal \u2013 Airbus SE (<a rel=\"noreferrer noopener\" aria-label=\"EADSY (opens in a new tab)\" href=\"https:\/\/finance.yahoo.com\/quote\/EADSY?p=EADSY&amp;.tsrc=fin-srch\" target=\"_blank\">EADSY<\/a>), the Government of Qu\u00e9bec and\u00a0 Bombardier Inc. (<a rel=\"noreferrer noopener\" aria-label=\"BBD-B.TO (opens in a new tab)\" href=\"https:\/\/finance.yahoo.com\/quote\/BBD-B.TO?p=BBD-B.TO&amp;.tsrc=fin-srch\" target=\"_blank\">BBD-B.TO<\/a>) have agreed upon a new ownership structure for the A220 program, whereby Bombardier transferred its remaining shares in Airbus Canada Limited Partnership (Airbus Canada) to Airbus and the Government of Qu\u00e9bec. The transaction is effective immediately.<\/p>\n\n\n\n<p>This agreement brings the shareholdings in Airbus Canada, responsible for the A220, to 75 percent for Airbus and 25 percent for the Government of Qu\u00e9bec respectively. The Government\u2019s stake is redeemable by Airbus in 2026 &#8211; three years later than before. As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Qu\u00e9bec.<\/p>\n\n\n\n<p>This new agreement underlines the commitment of Airbus and the Government of Qu\u00e9bec to the A220 programme during this phase of continuous ramp-up and increasing customer demand. Since Airbus took majority ownership of the A220 programme on July 1, 2018, total cumulative net orders for the aircraft have increased by 64 percent to 658 units at the end of January 2020.<\/p>\n\n\n\n<p>&#8220;This agreement with Bombardier and the Government of Qu\u00e9bec demonstrates our support and commitment to the A220 and Airbus in Canada. Furthermore it extends our trustful partnership with the Government of Qu\u00e9bec. This is good news for our customers and employees as well as for the Qu\u00e9bec and Canadian aerospace industry,\u201d said Airbus Chief Executive Officer Guillaume Faury. &#8220;I would like to sincerely thank Bombardier for the strong collaboration during our partnership. We are committed to this fantastic aircraft programme and we are aligned with the Government of Qu\u00e9bec in our ambition to bring long-term visibility to the Qu\u00e9bec and Canadian aerospace industry.\u201d<\/p>\n\n\n\n<p>\u201cI am proud that our government was able to reach this agreement. We have succeeded in protecting paying jobs and the exceptional expertise developed in Qu\u00e9bec, despite the major challenges we faced in this regard when we took office. We have consolidated the government\u2019s position in the partnership, while respecting our commitment not to reinvest in the program. By opting to strengthen its presence here, Airbus has chosen to focus on our talents and our creativity. The decision of an industrial giant like Airbus to invest more in Qu\u00e9bec will help attract other world-class prime contractors,\u201d the Premier of Qu\u00e9bec, Fran\u00e7ois Legault, stated.<\/p>\n\n\n\n<p>\u201cThis agreement is excellent news for Qu\u00e9bec and its aerospace industry. The A220 partnership is now well established and will continue to grow in Qu\u00e9bec. The agreement will allow Bombardier to improve its financial situation and Airbus to increase its presence and footprint in Qu\u00e9bec. It\u2019s a win\u2013win situation for both the private partners and the industry,\u201d pointed out Pierre Fitzgibbon, Minister of the Economy and Innovation.<\/p>\n\n\n\n<p>With this transaction, Bombardier will receive a consideration of $591M from Airbus, net of adjustments, of which $531M was received at closing and $60M to be paid over the 2020-21 period. The agreement also provides for the cancellation of Bombardier warrants owned by Airbus, as well as releasing Bombardier of its future funding capital requirement to Airbus Canada.<\/p>\n\n\n\n<p>\u201cThis transaction supports our efforts to address our capital structure and completes our strategic exit from commercial aerospace,\u201d said Alain Bellemare, President and CEO Bombardier, Inc.&nbsp; \u201cWe are incredibly proud of the many achievements and tremendous impact Bombardier had on the commercial aviation industry.&nbsp; We are equally proud of the responsible way in which we have exited commercial aerospace, preserving jobs and reinforcing the aerospace cluster in Qu\u00e9bec and Canada.&nbsp; We are confident that the A220 program will enjoy a long and successful run under Airbus\u2019 and the Government of Qu\u00e9bec\u2019s stewardship.\u201d<\/p>\n\n\n\n<p>The single aisle market is a key growth driver, representing 70 percent of the expected global future demand for aircraft. Ranging from 100 to 150 seats, the A220 is highly complementary to Airbus\u2019 existing single aisle aircraft portfolio, which focuses on the higher end of the single-aisle business (150-240 seats).<\/p>\n\n\n\n<p>As part of the agreement, Airbus has acquired the Airbus A220 and A330 work package production capability from Bombardier in Saint-Laurent, Qu\u00e9bec. These production activities will be operated in the Saint Laurent site by Stelia A\u00e9ronautique Saint Laurent Inc., a newly created subsidiary of Stelia Aerospace, which is a 100 percent Airbus subsidiary.<\/p>\n\n\n\n<p>Stelia A\u00e9ronautique Saint-Laurent will continue the production of the A220 cockpit and aft fuselage production, as well as A330 workpackages, for a transition period of approximately three years at the Saint-Laurent facility. A220 workpackages will then be transferred to the Stelia Aerospace site in Mirabel to optimize the logistical flow to the A220 Final Assembly Line also located in Mirabel. Airbus plans to offer all current Bombardier employees working on the A220 and A330 work packages at Saint-Laurent opportunities around the A220 programme\u2019s ramp-up, ensuring know-how retention as well as business continuity and growth in Qu\u00e9bec.<\/p>\n\n\n\n<p>At the end of January 2020, 107 A220 aircraft were flying with seven customers on four continents. In 2019 alone, Airbus delivered 48 A220s, with the further ramp-up to be continued.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1802\" height=\"910\" src=\"https:\/\/i1.wp.com\/planesintheair.com\/wp-content\/uploads\/2020\/02\/A220-100-A220-300-inflight-1.jpg?fit=640%2C323\" alt=\"\" class=\"wp-image-7581\" srcset=\"https:\/\/planesintheair.com\/wp-content\/uploads\/2020\/02\/A220-100-A220-300-inflight-1.jpg 1802w, https:\/\/planesintheair.com\/wp-content\/uploads\/2020\/02\/A220-100-A220-300-inflight-1-300x151.jpg 300w, https:\/\/planesintheair.com\/wp-content\/uploads\/2020\/02\/A220-100-A220-300-inflight-1-1024x517.jpg 1024w, https:\/\/planesintheair.com\/wp-content\/uploads\/2020\/02\/A220-100-A220-300-inflight-1-768x388.jpg 768w, https:\/\/planesintheair.com\/wp-content\/uploads\/2020\/02\/A220-100-A220-300-inflight-1-1536x776.jpg 1536w\" sizes=\"auto, (max-width: 1802px) 100vw, 1802px\" \/><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Airbus SE (EADSY), the Government of Qu\u00e9bec and  Bombardier Inc. (BBD-B.TO) have agreed upon a new ownership structure for the A220 program, whereby Bombardier transferred its remaining shares in <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10172,4510,798,4813,89,5637,8475,8222,5992,7929,2203,4957,5676,10169,10176,1397,10195,10171,868,10182,1103],"tags":[1262,739,167,47,420,10438,3332,160,9503,10439,52,274,1563,5521,9277,2954,688,2953,4379,1681,2307,10437,1493,2959,1790,1929,412,3119,6713,9419,1541,2169,10432,10436,4652,9063,10435,10434,2820,2164,10433,1691,1658,3896],"class_list":["post-7579","post","type-post","status-publish","format-standard","hentry","category-aerospace","category-aerospace-news","category-airbus-news","category-airplane-news","category-aviation-news","category-business-news","category-canadian-news","category-consumer-news","category-economic-news","category-european-news","category-finance-news","category-global-politics","category-international-news","category-news","category-stock-news-2","category-stock-news","category-transport","category-transportation","category-transportation-news","category-travel","category-travel-news","tag-a220","tag-a330","tag-aerospace","tag-airbus","tag-airline","tag-alain","tag-amsterdam","tag-aviation","tag-become","tag-bellemare","tag-bombardier","tag-canada","tag-commercial","tag-completes","tag-exit","tag-faury","tag-government","tag-guillaume","tag-increased","tag-industry","tag-jobs","tag-laurent","tag-limited","tag-mirabel","tag-montreal","tag-netherlands","tag-news","tag-orders","tag-owners","tag-packages","tag-partnership","tag-program","tag-quebec-2","tag-redeemable","tag-saint","tag-securing","tag-sole","tag-stelia","tag-strategic","tag-subsidiary","tag-transferred","tag-transport","tag-transportation","tag-work"],"_links":{"self":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/7579","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7579"}],"version-history":[{"count":1,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/7579\/revisions"}],"predecessor-version":[{"id":7583,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/7579\/revisions\/7583"}],"wp:attachment":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7579"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7579"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7579"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}