Airbus will close the deal to acquire a majority stake in the Bombardier CSeries programme on 1 July.
The European airframer says that all regulatory approvals required have been obtained. The transaction will see Airbus acquire a 50.01% interest in the CSeries Aircraft Limited Partnership, a joint venture between Bombardier and Investissement Quebec.
Bombardier will fund the cash shortfall of the joint venture up to a maximum of $225 million during the second half of 2018, up to $350 million in 2019, and up to a maximum aggregate of $350 million over the following two years. This will give the Canadian manufacturer non-voting participation shares with cumulative annual dividends of 2%.
The partnership’s head office, leadership team and primary final assembly will still be located in Montreal Mirabel. The parties also expect increased demand to support a second CSeries final assembly line in Mobile, Alabama, aimed at supplying US-based customers.
“The strength of the entire Airbus organization will be behind the CSeries. Not only will that enable this outstanding aircraft to fulfil its market potential, but we are convinced the addition of the CSeries to our overall aircraft product offering brings significant value to Airbus, our customers and shareholders,” says Airbus chief executive Tom Enders.
Airbus’s deal gives the airframer two products – the CS300 and A319neo – serving the 130-150-seat segment of the single-aisle market, while also extending its portfolio to the 100-seat segment with the CS100.