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Airbus, Bombardier see boost in CSeries sales under deal

Published 2017-10-16, 07:42 p/m
© Reuters.  Airbus, Bombardier see boost in CSeries sales under deal
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PARIS, Oct 17 (Reuters) - The chief executives of Airbus and Bombardier predicted an upswing in sales of the CSeries as a result of an agreement by Airbus to take control of the troubled Canadian jet programme.

Bombardier Chief Executive Alain Bellemare predicted the deal would double the value of the CSeries programme, which has been struggling due to weak sales and now faces heavy import duties to the United States after a Boeing (NYSE:BA) trade complaint.

In a media conference call, both executives said plans to build some jets at Airbus' U.S. assembly plant in Alabama would mean no import duty would be payable by U.S. airlines after all, potentially thwarting the anti-dumping trade case by Boeing.

Airbus said it would make no upfront payment in exchange for the CSeries stake, instead offering the benefit of its global procurement and marketing networks -- mirroring what industry sources described as the terms of a previous failed bid in 2015.

Airbus Chief Executive Tom Enders said much had changed since Airbus walked away from the previous round of talks, given that the CSeries was now certified and in service and Airbus continued to face a dearth in sales of its small A319.

Boeing had no immediate comment.

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