0 min left

Airbus & Bombardier Call Off Partnership Talks

European aerospace giant Airbus and Canadian aircraft manufacturer Bombardier say they are no longer in negotiations to explore a partnership.

Airbus Group and Bombardier confirmed Wednesday that the two companies were, until recently, engaged in secret talks to work together under an undisclosed business partnership. News of the negotiations was only confirmed after both parties had already abandoned the idea of a formal collaboration.

Air Transport World reports that Airbus released a brief statement confirming preliminary discussions between the European aircraft makers and its much smaller Canadian rival. Airbus would not release details of the proposal on the table, but said in the statement “such discussions were no longer being pursued.”

Airbus has been taking steps recently to gain a stronger foothold in the North American market where competitor Boeing has long dominated the market share. Airbus announced plans to step up production at its only North American manufacturing facility in Mobile, Ala. Industry analysts consider the move to be a frontal assault on Boeing’s home turf. A pact with Bombardier would have further strengthened Airbus’ position in the North American market, especially in the ultra-competitive and highly profitable arena of single-aisle-mid-sized aircraft.

Bombardier officials left the door open for a future deal with Airbus, including a possible takeover. The Montreal-based company released a statement of its own, confirming the failed talks and saying in part, “Bombardier will continue to explore initiatives such as a potential participation in industry consolidation.”

[Photo: iStock]

Comments are Closed.