Canadian Politics Today

http://www.cbc.ca/news/business/bombardier-airbus-c-series-1.4357567

European aircraft giant Airbus Group is buying a majority stake in Bombardier's CSeries program.

The two aircraft manufacturers announced the partnership Monday evening, weeks after the United States announced 300 per cent preliminary duties on exports of the aircraft following a complaint from Airbus rival Boeing.

The partnership is expected to result in significant CSeries production cost savings by leveraging Airbus's supply chain expertise, but Airbus won't be paying any money for the acquired stake.

Airbus will acquire a 50.01 per cent interest in the CSeries Aircraft Limited Partnership, which manufactures and sells
the plane.

Bombardier will own 31 per cent and the Quebec government's investment agency will hold 19 per cent.

What I find odd about the recent increase in tariffs from the US, is that Boeing complained that the subsidies that Bombardier gets push them out of the competition. Boeing has nothing that competes with the C Series.

It might be a good thing Airbus thew some money into the hat. They have come a long way and have managed to make a huge name for themselves in the aircraft industry. Maybe that will open the doors to other markets for Bombardier which they never had access to because of Airbus. Win win, thanks Boeing!

Apparently, by 2023, Airbus will own 100% of the C-Series program.  Hopefully they keep it in Canada.

http://www.cbc.ca/news/business/bombardier-airbus-c-series-1.4357567

What I find odd about the recent increase in tariffs from the US, is that Boeing complained that the subsidies that Bombardier gets push them out of the competition. Boeing has nothing that competes with the C Series.

Boeing's behaviour wasn't about today, but about tomorrow. They wanted to strangle Bombardier, which kept making larger and larger passenger aircraft, before they turned into another competitor.

It might be a good thing Airbus thew some money into the hat. They have come a long way and have managed to make a huge name for themselves in the aircraft industry. Maybe that will open the doors to other markets for Bombardier which they never had access to because of Airbus. Win win, thanks Boeing!

Airbus is a EU government funded manufacturer which has no loyalty to anyone but the EU countries who subsidize it. They'll be happy to take the profits from the Cseries but don't expect them to invest anything in manufacturing or research and development in Canada. Their mandate is to focus on jobs for Europe. Over the coming years they will move as much manufacturing and research as they can move to Europe from Quebec.

Your concerns are valid.  It could be good, depending on the terms of the deal and the plans for the future.

Surely Bombardier hasn't shown itself to be the runway model for management competency, so that might improve.

The C series is a completely new aircraft specifically designed for the 110- 120 seat market. All Boeing and Airbus have to compete is sawed off versions of old B-737 and A-320 designs. Excellent aircraft but the C is much quieter and more efficient, so Airbus picking it up for pennies on the dollar is a great deal for them and a poke in the eye for Boeing. Who knows how it will work out for Canada but it could be positive with the new EU FTA. Depends on the details.

It was the best of a bad set of options. If the Airbus deal did not happen then Bombardier would have either sold out to the Chinese or gone bankrupt with the Chinese picking up the assets. I don't think anyone believes that getting the Chinese involved would have been good for jobs.

Perhaps we should be asking ourselves in the future is it worth investing billions of tax payers dollars to save a couple thousand jobs here in Canada.....and then have the company swept up by a foreign Company for like you said penny's on  the dollar, over a small discourse with Boeing....perhaps we should let nature take it's course if they fail then so be it....out of the ashes something stronger will grow....

Perhaps we should be asking ourselves in the future is it worth investing billions of tax payers dollars to save a couple thousand jobs here in Canada.....and then have the company swept up by a foreign Company for like you said penny's on  the dollar, over a small discourse with Boeing....perhaps we should let nature take it's course if they fail then so be it....out of the ashes something stronger will grow....

Thing is, when you factor in the suppliers and a mirriad of other supporting companies it is a easily ten times those 2000 jobs. The country has to decide whether it wants an aerospace industry and all its technological spinoffs or not and if so, what it is prepared to do to have one.

The C series is a completely new aircraft specifically designed for the 110- 120 seat market. All Boeing and Airbus have to compete is sawed off versions of old B-737 and A-320 designs.

The C series was specifically designed for the US market. That's where they need this type of aircraft. They're sure not needed in Asia or India. African airlines don't buy new aircraft much, and South America is locked in with Embraer. Without the US the C series has few markets.