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14-Feb-2020 8:19 AM

Bombardier exits A220 programme for USD591m, Airbus takes 75% ownership share

Airbus, the Government of Québec and Bombardier announced (13-Feb-2020) a new ownership structure for the A220 programme, with Bombardier transferring its remaining shares in Airbus Canada Limited Partnership (Airbus Canada) to Airbus and the Government of Québec. The transaction is effective immediately. Key details include:

  • Ownership: Shareholdings in Airbus Canada, responsible for the A220, to 75% for Airbus and 25% for the Government of Québec respectively. The Government's stake is redeemable by Airbus in 2026 - three years later than before;
  • Production activities: As part of the agreement, Airbus has acquired the A220 and A330 work package production capability from Bombardier in Saint-Laurent, Québec. These production activities will be operated in the Saint Laurent site by Stelia Aéronautique Saint Laurent, a newly created subsidiary of Stelia Aerospace, a 100% Airbus subsidiary;
    • Stelia Aéronautique Saint-Laurent will continue the production of the A220 cockpit and aft fuselage production, as well as A330 work packages, for a transition period of three years at the Saint-Laurent facility. A220 work packages will then be transferred to the Stelia Aerospace site in Mirabel to optimise 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's ramp-up, ensuring know-how retention as well as business continuity and growth in Québec;
  • Financing: Bombardier will receive USD591 million, net of adjustments, of which USD531 million was received at closing. The agreement also provides for the cancellation of Bombardier warrants owned by Airbus. It also releases Bombardier of its future funding capital requirement to Airbus Canada of approximately USD700 million.The Government of Québec's increase in its holding was completed for no cash consideration. [more - Airbus] [more - Bombardier] [more - IAM Quebec]
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