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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 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.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 executives said the deal - which will see Airbus buy a 50.01% stake - would help to boost sales.Airbus and Bombardier's chief executives 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.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.He said it would use its financial muscle in procurement and sales, while Bombardier's manufacturing operations would continue to build the planes.
Analysis: John Campbell, BBC News NI economics and business editor Analysis: John Campbell, BBC News NI business and economics editor
It's perhaps symptomatic of the difficulties the C-Series has faced that Airbus will not have to hand over any cash for its 50% stake.It's perhaps symptomatic of the difficulties the C-Series has faced that Airbus will not have to hand over any cash for its 50% stake.
The hope will be that Airbus' financial muscle will finally put an end to those difficulties.The hope will be that Airbus' financial muscle will finally put an end to those difficulties.
In particular, Airbus thinks it can solve the C-Series tariff problem by assembling the plane for US customers inside the US at its factory in Alabama.In particular, Airbus thinks it can solve the C-Series tariff problem by assembling the plane for US customers inside the US at its factory in Alabama.
But, as trade expert Simon Lester of the Cato Institute pointed out to me, it may not be that straightforward.But, as trade expert Simon Lester of the Cato Institute pointed out to me, it may not be that straightforward.
That's because of something known as "trade circumvention" - in crude terms, when a company tries to avoid tariffs by superficially changing the country of origin of its products.That's because of something known as "trade circumvention" - in crude terms, when a company tries to avoid tariffs by superficially changing the country of origin of its products.
Will the US trade authorities (and Boeing) see an Alabama-assembled C-Series as an attempt at circumvention?Will the US trade authorities (and Boeing) see an Alabama-assembled C-Series as an attempt at circumvention?
Importantly, Airbus has a major factory in the US, he said. " Davy Thompson, from the trade union Unite, said the deal was a "welcome development".
It thinks that by assembling the C-Series there, it will be able to sell them to US customers without facing tariffs." "My understanding of the deal, and what it means for Belfast, is the supply chain still seems to be what it is today, which would mean Belfast is integral to the overall process.
"That should, we believe, increase and assure people's jobs down in the C-Series plan, but there are still further challenges."
He said the deal there were still some "concerns" over non-C-Series related contracts at Bombardier's Belfast plant, but the deal with Airbus should "allow for more orders to be placed" and help with long-term employment across the site.
'Positive step''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.
The firm said the agreement with Airbus "looks like a questionable deal between two heavily state-subsidized competitors to skirt the recent findings of the US government".
"Our position remains that everyone should play by the same rules for free and fair trade to work," it added.
UK Business Secretary Greg Clark said the Airbus tie-up was a "positive step forward".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".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.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.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."I'm thrilled there is a bright future ahead following what has been a dark time for staff and management," she added.
Sinn Féin's Stormont leader Michelle O'Neill said the deal was a "good news story for Bombardier" that would "come as a relief to the workers and their families and all those local businesses involved in the Bombardier supply chain".