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"Buys" is a strong word for "gets for free". From the article: Bombardier Inc. announced Monday it has sold a majority stake in its CSeries passenger jet busin
by Zarathust 9y ago
"Buys" is a strong word for "gets for free". From the article:
Bombardier Inc. announced Monday it has sold a majority stake in its CSeries passenger jet business to European aerospace giant Airbus for no cost.
- panzer_wyrm 9y agoIsn't the proper term gift?
- nv-vn 9y agoNo. The cost just wasn't monetary. If I understand correctly, Airbus gets the CSeries and Bombardier no longer has to make a profit out of their debts. So basically Airbus paid for CSeries by taking on CSeries' debts. Also, Bombardier still owns stake in CSeries, so any profit from CSeries is still positive for them. Since Airbus can provide the manufacturing in the US, this seems like a net profit compared to the alternative.
- Zarathust 9y agoThis is incorrect. Airbus does not share existing debt, but may contribute up to 300M per year to new debt for the next 3 years. From the article: "Airbus is not assuming any debt as part of the deal."