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Bombardier to partner Airbus on C-Series jets | Bombardier to partner Airbus on C-Series jets |
(35 minutes later) | |
European aerospace firm Airbus is to take a majority stake in Bombardier's C-Series jet project. | European aerospace firm Airbus is to take a majority stake in Bombardier's C-Series jet project. |
Bombardier has faced a series of problems over the plane, most recently a trade dispute in the US that imposed a 300% import tariff. | |
Bombardier's Northern Ireland's director Michael Ryan said the deal was "great news" for the Belfast operation. | Bombardier's Northern Ireland's director Michael Ryan said the deal was "great news" for the Belfast operation. |
About 1,000 staff work on the C-Series at a purpose-built factory in Belfast, mostly making the plane's wings. | |
Airbus and Bombardier's chief executive said the deal - which will see Airbus buy a 50.01% stake - would help to boost sales. | |
BBC Northern Ireland's business and economics editor John Campbell said Airbus had effectively taken control of the C-Series project in a transformational deal. | |
He said it would use its financial muscle in procurement and sales, while Bombardier's manufacturing operations would continue to build the planes. | |
Importantly, Airbus has a major factory in the US, he said. "It thinks that by assembling the C-Series there, it will be able to sell them to US customers without facing tariffs." | |
'Positive step' | |
Bombardier was accused of anti-competitive practices by rival Boeing, which complained to the US authorities. | Bombardier was accused of anti-competitive practices by rival Boeing, which complained to the US authorities. |
Boeing accused the Canadian firm of selling the jets below cost price after taking state subsidies from Canada and the UK. | Boeing accused the Canadian firm of selling the jets below cost price after taking state subsidies from Canada and the UK. |
UK Business Secretary Greg Clark said the Airbus tie-up was a "positive step forward". | |
Mr Clark said the UK and Canadian governments had been working to "safeguard jobs and manufacturing at Bombardier Shorts in Belfast, and the supply chain across the UK". | |
The government was still pushing for a "swift resolution" to the Boeing dispute, he added. | |
Arlene Foster, leader of Northern Ireland's Democratic Unionist Party, said she hoped the deal would "safeguard" the C-Series programme. | |
"I'm thrilled there is a bright future ahead following what has been a dark time for staff and management," she added. |