European plane manufacturer Airbus has struck an accord to buy the remaining stake of Canadian aircraft and train manufacturer Bombardier in the A220 passenger jet system, it announced Thursday. Both businesses also released their full-year revenue report.
The deal signals Bombardier’s departure from commercial aviation by transferring its remaining interest in Airbus Canada to the main parent Airbus SE firm and the federal government of the Canadian state of Quebec.
Bombardier will receive $591 million, net of adjustments, and will not have future funding capital necessities to Airbus Canada. The accord will secure over 3,300 Airbus jobs in Quebec, the companies mentioned.
Bombardier further said that the deal would also assist the company – which witnessed money crunch back in 2015 – enhance its overall financial standing.
“This accord supports our efforts to address our capital structure and completes our strategic departure from commercial aerospace,” stated CEO Alain Bellemare.
Sources have said that Bombardier’s rail making business may also be sold to French group Alstom, though any contract between Alstom and Bombardier has yet to be concluded.
Both businesses were slated to provide their full-year revenue report Thursday.
In advance of its report, Bombardier in December pared its earnings scope for last year and said it was contemplating getting out of the A220 collaboration with Airbus to alleviate future costs.
Two years ago, Airbus had become the 50.01-percent majority owner of the A220 in a transaction, when the jet was known as the Bombardier C Series.