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Leonardo renegotiating A220 supply terms with Airbus

Italian aerospace group Leonardo is negotiating with Airbus to secure new terms for the supply of A220 components.

Leonardo chief executive Alessandro Profumo said during a results briefing on 30 July that the group had initiated legal proceedings against Bombardier before Airbus took over control of the A220 programme – previously known as the CSeries – in July, and that the case had now been redirected at the European airframer.

Having previously admitted that Leonardo was "losing money" on the programme, Profumo says the price the manufacturer receives for A220 components is below a "cost structure discussed with Bombardier".

Leonardo supplies the vertical and horizontal stabilisers for the A220.

Profumo is hopeful that the dispute can be resolved. "We have a very open talk on that with our Airbus friends," he says.

Airbus said in July that it was seeking double-digit cost efficiencies for the A220 programme through renegotiation of supplier terms and increases in the aircraft's production volume.

Leonardo and Airbus jointly own turboprop manufacturer ATR.

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