{"id":56549,"date":"2017-10-17T14:52:20","date_gmt":"2017-10-17T14:52:20","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2017\/10\/17\/airbus-notches-win-over-rival-boeing-with-bombardier-deal\/"},"modified":"2026-08-08T00:05:15","modified_gmt":"2026-08-08T00:05:15","slug":"airbus-notches-win-over-rival-boeing-with-bombardier-deal","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/industry\/2017\/10\/17\/airbus-notches-win-over-rival-boeing-with-bombardier-deal\/","title":{"rendered":"Airbus notches win over rival Boeing with Bombardier deal"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">PARIS \u2014 Airbus scored a point in its high-stakes rivalry with Boeing by striking a deal just across the U.S. border.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The European plane maker reached an unusual, no-cost deal with Canada\u2019s Bombardier that sent Airbus shares up Tuesday, boosts both companies\u2019 prospects in Asia and should save thousands of Bombardier jobs from Quebec to Northern Ireland.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It could also help Bombardier avoid heavy U.S. duties that had helped push the Canadian company near bankruptcy. The announcement late Monday gives Airbus a majority stake in Bombardier\u2019s C Series passenger jets, and some C Series planes will now be built at an Airbus plant in Mobile, Alabama.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Boeing called it a questionable deal by two state-subsidized competitors.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/air\/2017\/10\/08\/canadian-us-super-hornet-dispute-could-spark-trade-war\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/3407445.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Canadian-US Super Hornet dispute could spark trade war<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Will Canada abandon its deal with Boeing for new Super Hornets? And what other options does it have?<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">It is a rare bright spot for Airbus, which is currently facing growing legal troubles stemming from corruption investigations in Britain, France and Austria. Airbus shares rose 2.8 percent in Tuesday in Paris before falling back slightly to \u20ac79 (U.S. $93).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Airbus CEO Tom Enders sought to assure investors that the Bombardier deal will save money for both companies by combining supply chains and production. He argued that it will improve the appeal for C Series jets, which have struggled for customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThis puts us in an excellent position &#8230; with no cost, with no risk,\u201d Enders said of the deal. He added it will allow Airbus to expand activities in China and \u201cstrengthen our global industrial footprint.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While Airbus rejected a deal with Bombardier three years ago, Enders said Airbus is feeling more confident now in the C Series jets and its own ability to take on another production line.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"2000\" height=\"1331\" src=\"\/wp-content\/uploads\/2026\/08\/AP17270045329277.jpg.jpg\" alt=\"\" class=\"wp-image-29008\" srcset=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP17270045329277.jpg.jpg 2000w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP17270045329277.jpg.jpg?resize=300,200 300w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP17270045329277.jpg.jpg?resize=768,511 768w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP17270045329277.jpg.jpg?resize=1024,681 1024w, https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/AP17270045329277.jpg.jpg?resize=1536,1022 1536w\" sizes=\"auto, (max-width: 2000px) 100vw, 2000px\" \/><figcaption class=\"wp-element-caption\">A Bombardier C Series jet sits in a Montreal hanger. The U.S Commerce Department slapped duties of nearly 220 percent on Canada&#8217;s Bombardier C Series aircraft on Sept. 26, 2017, in a victory for Boeing. (Paul Chiasson\/The Canadian Press via AP)<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The move comes after the U.S. Commerce Department imposed harsh duties on Bombardier, accusing it of selling C Series planes in America below cost and receiving government subsidies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Commerce Department announced it would impose an 80 percent duty on top of duties of nearly 220 percent. The case was a win for Boeing, which brought the complaint.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Airbus \u2014 in a long-running trade battle with Boeing \u2014 argues that the U.S. company receives illegal tax breaks that act like subsidies and hurt competition.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Officials and unions in Northern Ireland cautiously welcomed the Airbus-Bombardier deal. Bombardier employs more than 4,000 people at its Belfast factories and will deliver 125 new C Series jets to Delta Air Lines next year.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Davy Thompson, regional officer of the Unite union, called it a \u201cwelcome development \u2014 one that gives breathing space to the C Series itself and which we anticipate should safeguard the future of C Series production jobs in Belfast for the foreseeable future.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, Ross Murdoch of union GMB warned that \u201cthis deal is liable to further scrutiny from the U.S. administration that may see it as an attempt to dodge their trade tariffs. &#8230; GMB hopes both Bombardier and Airbus have taken cast iron legal advice to ensure they don\u2019t get rid of one legal challenge only to open themselves up to another.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Airbus acquisition will be subject to Canadian government review. Airbus will acquire a 50.01 percent interest in C Series Aircraft Limited Partnership, which manufactures and sells the plane. It will not pay anything for the stake, a recognition that the unit will see sales increase merely by virtue of being part of the Airbus group.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bombardier will own 31 percent, and the Quebec government\u2019s investment agency will hold 19 percent.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Airbus is not assuming any debt as part of the deal and it has an option to buy out Bombardier\u2019s ownership after seven-and-a-half years and the Quebec government\u2019s ownership in 2023.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><i>Rob Gillies in Toronto and Danica Kirka in London contributed to this report.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The European plane maker reached an unusual, no-cost deal with Canada\u2019s Bombardier that sent Airbus shares up Tuesday.<\/p>\n","protected":false},"author":7,"featured_media":115073,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":12,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[7,160,46,11,12,36,48],"tags":[],"coauthors":[2932],"class_list":["post-56549","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-air","category-daily-news-roundup","category-europe","category-global","category-industry","category-newsletters","category-the-americas"],"acf":{"subheadline":"","legacy_arc_id":"7X23GAJJQJEMNEO2EMR6RNCY74","arc_canonical_url":"\/industry\/2017\/10\/17\/airbus-notches-win-over-rival-boeing-with-bombardier-deal\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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