July 1, 2018 will be a big day for Airbus and Bombardier, as both closing a deal for CSeries partnership.
Having received all required regulatory approvals, Airbus, Bombardier and Investissement Québec (IQ) have agreed to close the C Series transaction effective on July 1, 2018. The transaction by which Airbus will acquire a majority stake in the C Series Aircraft Limited Partnership (CSALP) was initially announced in October 2017.
The partnership, will benefit from Airbus’ global reach, scale, procurement organization and expertise in selling, marketing and producing the C Series jet aircraft family in the 100-150 seat market segment.
As previously announced, Bombardier will fund the cash shortfalls of CSALP, if required, during the second half of 2018, up to a maximum of US$225 million and during 2019, up to a maximum of US$350 million, then up to a maximum aggregate amount of US$350 million over the following two years, in consideration for non-voting participating shares of CSALP with cumulative annual dividends of 2%. Any excess shortfall during such periods will be shared proportionately amongst CSALP’s Class A shareholders. Airbus will consolidate CSALP effective from July 1, 2018 onwards. Further financial information on the transaction will be provided later this year. Airbus reported.
The C series program continues to ramp up. Having delivered 17 aircraft in 2017, it is gearing up to double its deliveries in 2018.
The C Series is positioned to capture a large percentage of the estimated 6,000 aircraft needed in this market segment over the next 20 years,