Bombardier and Airbus had a press conference a few hours ago and here are some key points:
-In the CSeries program, Bombardier owns 31%, Quebec 19%, and Airbus 51%
-Airbus has the option in 7 ½ years to purchase the remaining stake from Bombardier
-The Quebec government will remain a shareholder in the program until 2023 instead of the previous timeframe of 2021
-The program's value is now worth approx. $2 billion after the acquisition compared to $1 billion when the Quebec govt bought its portion according to Bombardier
-Jobs in the CSeries program currently in Quebec will remain in Quebec until 2041
-Bombardier admitted they will earn a smaller portion of profits from an overall larger cut of revenues
Their venture into the CSeries wasn't a failure. The venture brought in Airbus, Airbus' supply chain and a second assembly line in the US. Meaning essentially that the US duties cannot be enforced on the Delta order.
We might have a different description of what a failure is. In my opinion, a project/program can be deemed a failure when it continuously bleeds money and no profit has been made whatsoever and has to be bailed out by another group.
Does this mean that Bombarier is our of the aerospace industry as a potential major player? I know that they had some larger aircraft in the pipeline, that would directly compete with some larger Boeing products. Will those not materialize anymore?
Not really in the loop when it comes to aerospace.
Well if Bombardier sells of both the Q400 series and CRJ, depending on the stake sold, that would essentially take them out from being a major player in the industry since it would only leave the business jets in their Aerospace portfolio. It would be a sad fall from grace from a company that showed a lot of promise in the early 2000's.