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Bombardier sold the C-Series to Airbus. And, even if they had "given up" their design, Embraer would be in trouble to compete with Airbus anyway.

by myth2018 3y ago

sofixa 3y ago
> On 16 October 2017, Bombardier and Airbus announced that Airbus would acquire a 50.01% majority stake in the CSALP partnership, with Bombardier keeping 31% and Investissement Québec 19%. Airbus paid no money, incurred no debt and assumed no liability for its share in the programme, > After reassessing its participation in January 2020, Bombardier exited the A220 programme in February 2020, selling its share to Airbus for $591 million. Airbus thus owned 75% of the programme; the remaining 25% of shares were held by Investissement Québec. Under the acquisition terms Airbus acquired Bombardier's option to buy out Investissement Québec's share from 2023, with a revised option date of 2026 That's pretty much giving it (majority control) up for free, and the rest for very cheap. > Embraer would be in trouble to compete with Airbus anyway. To an extent, but the E2 and the C-Series aren't really in the same segment - one is a regional jet, the other is a short to medium haul one. The Embraer E2s have less capacity and range than the A220, being optimised for shorter and less dense routes, and they have absolutely zero competition in the market today.
- myth2018 3y ago
  > That's pretty much giving it (majority control) up for free, and the rest for very cheap. It appears that Bombardier took some other financial aspects in consideration before they made that decision. I have no further knowledge, and that would be more than I'm willing to research for this discussion. Besides, this is tangential to the Embraer x Bombardier debate. > but the E2 and the C-Series aren't really in the same segment Indeed, but there's some overlap between the largest E2 and the smallest C-Series, while the E2 is much cheaper.
  - bobthepanda 3y ago
    Multiple parts of Bombardier were failing at the time, particularly its trains division which was fire sold to Alstom.
    - sofixa 3y ago
      Bombardier's trains division wasn't failing, it was just that Bombardier the company was overleveradged on getting the C-Series out. What that failed, they were massively in debt, and had to do a fire sale on everything of value (CRJ, trains division).

Bombardier sold the C-Series to Airbus. And, even if they had "given up" their design, Embraer would be in trouble to compete with Airbus anyway.

sofixa 3y ago

> On 16 October 2017, Bombardier and Airbus announced that Airbus would acquire a 50.01% majority stake in the CSALP partnership, with Bombardier keeping 31% and Investissement Québec 19%. Airbus paid no money, incurred no debt and assumed no liability for its share in the programme, > After reassessing its participation in January 2020, Bombardier exited the A220 programme in February 2020, selling its share to Airbus for $591 million. Airbus thus owned 75% of the programme; the remaining 25% of shares were held by Investissement Québec. Under the acquisition terms Airbus acquired Bombardier's option to buy out Investissement Québec's share from 2023, with a revised option date of 2026 That's pretty much giving it (majority control) up for free, and the rest for very cheap. > Embraer would be in trouble to compete with Airbus anyway. To an extent, but the E2 and the C-Series aren't really in the same segment - one is a regional jet, the other is a short to medium haul one. The Embraer E2s have less capacity and range than the A220, being optimised for shorter and less dense routes, and they have absolutely zero competition in the market today.

myth2018 3y ago
> That's pretty much giving it (majority control) up for free, and the rest for very cheap. It appears that Bombardier took some other financial aspects in consideration before they made that decision. I have no further knowledge, and that would be more than I'm willing to research for this discussion. Besides, this is tangential to the Embraer x Bombardier debate. > but the E2 and the C-Series aren't really in the same segment Indeed, but there's some overlap between the largest E2 and the smallest C-Series, while the E2 is much cheaper.
- bobthepanda 3y ago
  Multiple parts of Bombardier were failing at the time, particularly its trains division which was fire sold to Alstom.
  - sofixa 3y ago
    Bombardier's trains division wasn't failing, it was just that Bombardier the company was overleveradged on getting the C-Series out. What that failed, they were massively in debt, and had to do a fire sale on everything of value (CRJ, trains division).