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​Airbus formally takes control of CSeries programme

Airbus and Bombardier have confirmed the closing of the CSeries transaction, giving the European airframer a majority stake in the programme.

Airbus now owns 50.01% in CSeries Aircraft Limited Partnership (CSALP), Bombardier 34%, and Investissement Quebec 16%, say the two parties.

In addition, Bombardier has issued Airbus warrants that can be exercised for 100 million Class B shares. These have an exercise price of C$2.29 ($17.4), says Bombardier. These are exercisable for five years.

In early June, Airbus said that all regulatory approvals required have been obtained. Bombardier will fund the cash shortfall of the joint venture for 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.

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.

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