Bombardier's secret talks with Airbus have ended
Airbus confirmed today that it had been in talks with Canadian manufacturer Bombardier, but those discussions “are no longer being pursued”.
Bombardier said the talks were part of the company’s broader strategic review initiated when Alain Bellemare became chief executive earlier this year.
The company has had a financial crisis as delays and weak sales of the CSeries and other development programmes impacted on performance.
“As previously mentioned, Bombardier will continue to explore initiatives such as a potential participation in industry consolidation,” Bombardier said in a statement.
The 110-seat CS100 version of the CSeries family is nearing certification later this year and entry into service in the first half of next year with Swiss International Air Lines, followed by the debut of the CS300 six months later.
The company’s business challenge is compounded by the looming cost of ramping up CSeries production, even as development continues on the Global 7000 and Global 8000 business jets.
Flightglobal reported that Moody’s has warned that Bombardier’s cash position could decline to a minimum level of $2 billion next August, given current spending trends.
The Canadian company has also been reportedly moving closer to Chinese manufacturer COMAC and increasing the level of commonality between the CSeries and the Chinese manufacturer’s C919.
CSeries - Developing commonality with C919