Bombardier and Airbus: A Game-Changing Agreement
Recently, Bombardier and Airbus announced a partnership that has been dubbed as a “game changer” in the aerospace industry. The agreement sees Airbus taking a majority stake in Bombardier`s C Series program, which produces a line of narrow-body commercial aircraft. This partnership has far-reaching implications for both companies and the industry as a whole.
The Bombardier C Series planes have been struggling to gain momentum in the market due to stiff competition from established players like Boeing and Airbus. However, the partnership with Airbus gives the C Series a much-needed boost, as Airbus will now have the opportunity to leverage its global marketing power and supply chain to help the program reach its full potential.
Under the agreement, Airbus will take a 50.01% stake in the C Series program, while Bombardier will retain a 31% stake and the Quebec government will hold a 19% stake. This also means that the aircraft will be produced at Airbus` manufacturing facilities in Alabama, which will give it access to the American market and allow it to avoid any potential trade disputes.
For Bombardier, this partnership is a major win as it comes at a time when the company was struggling to stay afloat. Bombardier has been plagued by production delays, financial losses and a failed partnership with Delta Airlines. The Airbus partnership has given Bombardier the necessary capital injection and access to Airbus` supply chain to ensure that the C Series program is a success.
The partnership is also significant for Airbus as it allows it to expand its product offerings and compete more effectively with Boeing. The C Series planes are a complementary addition to Airbus` existing line of aircraft, which are primarily wide-bodied planes. It also allows Airbus to tap into the growing demand for narrow-bodied planes in the Asia-Pacific market.
In conclusion, the Bombardier-Airbus partnership has created a win-win situation for both companies. Bombardier gains access to Airbus` global marketing power and supply chain, while Airbus gets a complementary addition to its product offerings and access to the narrow-bodied commercial aircraft market. This partnership is not only a game changer for both companies but the entire aerospace industry.