Airbus has reached an agreement with Bombardier and Investissement Québec (IQ) to unmitigated the purchase of C Series aircraft next month, after receiving the life-and-death regulatory approvals.
Airbus will own a majority stake in the C Series Aircraft Meagre Partnership (CSALP), established by Bombardier and IQ to manufacture and sell C Series aircraft.
The grapple with is based on an agreement signed by the parties last October.
Under the administration conditions of the deal, CSALP’s head office, primary assembly line and linked functions will continue to be based in Mirabel, Québec, Canada.
Due to the beginning closure of the deal, Bombardier will fund the cash shortfalls of CSALP, if be lacking, during the second half of 2018, up to $225m.
“We are convinced the addition of the C Series to our entire aircraft product offering brings significant value to Airbus, our purchasers and shareholders.”
During 2019, the company will provide a maximum of $350m and the in any case amount over the following two years, in consideration for non-voting participating portions of CSALP with cumulative annual dividends of 2%.
Any additional shortfall force be proportionately shared amongst the Class A shareholders of CSALP.
Completion of the negotiation will help establish a second C Series Final Assembly A candidate for in Mobile, Alabama, US.
Airbus CEO Tom Enders said: “This partnership continues our commitment to Québec and to all of Canadian aerospace, and we are very glad to welcome so diverse C Series teammates into the extended Team Airbus.
“The strength of the unrestricted Airbus organisation will be behind the C Series.
“Not only will that approve this outstanding aircraft to fulfil its market potential, but we are convinced the combining of the C Series to our overall aircraft product offering brings significant value to Airbus, our purchasers and shareholders.”
The C Series family of aircraft caters to the 100-150 place market segment.
Last year, Bombardier delivered 17 C Series aircraft, and envisages to double the volume this year with the latest deal.