AKC6

Exactly:

"Airbus said it will acquire a 50.01 per cent interest in C Series Aircraft Limited Partnership, the division that makes the C Series."--Globe and Mail sub-head today.

Link: https://beta.theglobeandmail.com/rep...ticle36610340/

readywhenyouare

If this deal between Airbus and Bombardier is allowed then Embraer is as good as dead. They will never be able to get costs as low or have the marketing and sales power.

ATLawyer

Probably true, but note that the deal isn't set to close until Q3-4 2018. So the impact on the tariff decision in the short term is somewhat limited. The U.S. line won't be up and running for multiple years. DL first delivery is next year. DL birds (at least the first ones) will be made in Canada (unless a 2-3 year deferment comes about, which apparently DL has an option to do).

Mountain Explorer

I don't think that's true. Bombardier jet division was desperate before the tariff. They needed an emergency bailout by the govt to even reach this point. And, despite a massive effort, the only US sale they could swing was a deal where they lose money on every plane sold.

I'm guessing the tariff sealed the deal. But it's beyond ridiculous to say it was the only reason for the deal.

bergamini

Time to create a B717 MAX. (A joke)

jamiestr

*Grabs popcorn*

But seriously though, no thanks to Boeing for causing this situation. It's well known that most aircraft manufacturers sell their first frames at a loss. Build planes than can actually compete in the marketplace, and stop all of this non-sense. I would have much preferred for an independent Bombardier to have sold their planes to DL.

But kudos to Bombardier and Airbus for finding a way around this non-sense, and I look forward to flying the C-Series in short order.

Yellowjj

Not true at all. Bombardier has been shopping the C-series to Airbus and the Chinese since late last year if I recall correctly. They have been in quite a cash crunch for a while now; looking for a partner. I'm actually surprised the Chinese didn't bite on this, but I guess they figured they had their own headache in the Comac.

24left

Posted about an hour ago. A few interesting comments.

https://www.flightglobal.com/news/ar...ly-exe-442214/

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KDCAflyer

I'm sure many things were broken at Boeing HQ today. Serves those fools right.

Maybe now they'll make some clean-sheet narrow-body designs that actually belong in the 21st century.

readywhenyouare

I would hardly call the people who designed the best selling passenger jetliner of all time and creators of the most advanced aircraft in the sky "fools". And if anyone thinks our President will let the French and Canadians pull a fast one you've got another thing coming.

Duke787

I'm sure the Senators from Alabama might have something to say about that.

Whatever your view on the C Series and this deal it's fairly shrewd since it throws jobs to US workers

readywhenyouare

This is bait and switch. That plant in AL was for producing airbus narrowbodies. It was not intended to produce Bombardier aircraft. They are using it as a way of tax evasion.

24left

Note the opening line. Some excellent comments posted as well.

Airbus-Bombardier CSeries deal means no tariffs on US-assembled aircraft, says CEO

Oct. 16, 2017, © Leeham Co.


QUOTES:

"..The stunning Airbus-Bombardier partnership for the CSeries program guarantees the future of the new airplane, kills off the A319 and thrusts a big stick up Boeing’s tailpipe."

...."This means Delta will have to reschedule its deliveries, if the US government doesn’t reverse preliminary findings on the duties or the US Court of International Trade or another venue doesn’t overturn the findings."

..."The deal fills a major gap in the Airbus product line: below 150 seats. Airbus CEO Tom Enders said there hasn’t been a sale of the A319, the 126-seat model, since 2012. The CS100 seats 100-110 passengers and the CS300 135-145 (and 160 in high density).

Enders declared that the CSeries presented no competition to Airbus because of the lack of sales for the A319.

Boeing, on the other hand, offers the 737-700, which will be phased out with the 737-7 MAX. Poor sales of the 7 MAX prompted a redesign, adding 12 seats. But the move hasn’t spurred sales."


Full article

https://leehamnews.com/2017/10/16/ai...raft-says-ceo/
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KDCAflyer

They're fools now. The market clearly wants smaller, more efficient planes. Boeing hasn't delivered that in the narrow-body market, and can't with the tired 737 design.

Who cares? It's jobs going to American workers. Tax evasion? LMAO how so? You're starting to sound like you've been retained by Boeing's PR section.

readywhenyouare

A tariff is a tax on imported goods. It was ruled that a tariff would be imposed on any C Series aircraft brought into the US. Bombardier is trying to avoid this by selling their soul to the devil.

I'm not sure what demand you are talking about. Sales of the C Series has been terrible. Why do you think Delta got such a low price on them?