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COVER STORY

Chess Moves

The Airbus-Bombardier C Series partnership could revive the fortunes of the technologically
advanced but slow-selling jetliner
By Arun Sivasankaran
Airbus’ decision to buy a majority stake in The Deal Airbus’ point of view as well. With the single
Bombardier’s C Series jetliner programme According to the terms of the deal that is aisle market representing a whopping
not only breathes life into a programme that expected to close in the second half of 2018, 70 percent of the expected global future
was clearly struggling for survival but also Airbus will acquire a 50.01 percent interest demand for aircraft, the partnership with
gives the Canadian plane-maker a big boost in C Series Aircraft Limited Partnership Bombardier brings together two product
in its trade dispute with Boeing. It also has (CSALP), which manufactures and sells the lines that have the potential to dominate the
the potential to drastically alter the booming aircraft. Bombardier and Investissement market. While the C Series aircraft ranges
single-aisle market landscape. Québec (IQ) will own 31 percent and 19 from 100 to 150 seats, Airbus’ A320 family
Airbus’ global reach and scale as well percent respectively. focuses on the higher end of the single-aisle
as it supply chain expertise will not only Airbus will spend nothing for its majority business with 150-240 seats. The partnership
significantly reduce C Series production stake, a clear indication that Bombardier enables the two companies to cover the
cost, thus making it a more attractive realizes how crucial the European plane entire spectrum and to take on Boeing’s 737.
market proposition, but also provide the maker’s involvement is in turning its fortunes It has been forecast that as many as 6,000
technologically advanced aircraft with the around. Losing control over the programme, new aircraft in the 100-150 seat market
kind of sales network and product support as Bombardier will due to the deal, is a segment will be introduced over the next
that it deserves. After the first round of small price to pay for staying relevant in an 20 years. According to Boeing’s 2017-2036
discussions between Airbus and Bombardier increasingly competitive market. With Airbus current market outlook, 41,030 new aircraft
regarding the C Series jet in 2015 went taking control of the C Series, Bombardier deliveries are expected during the period,
nowhere, John Leahy, Airbus Chief Operating will be able to focus on its moneymaking rail with 28,530 being single isle aircraft. Fleet
Officer - Customers, had described the plane and business jet divisions. growth will be most pronounced in the Asia
as an “orphan.” Now, it clearly isn’t. The deal makes perfect sense from Pacific region, with carriers in the region
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