Bombardier sells off A220 stake, ending C Series chapter

Bombardier to make a 'positive' announcement this week, says Quebec minister

Bombardier to make a 'positive' announcement this week, says Quebec minister

Aerospace firm Bombardier has sold its remaining stake in the A220 jet project to Airbus for $591m (£455m).

Bombardier will receive US$591 million, net of adjustments, and will no longer have future funding capital requirements to Airbus Canada. Bombardier will no longer be required to make investments of approximately $700 million U.S. in the commercial jet program.

Airbus can buy out Quebec in 2026, three years later than before. After that, they will be transferred to Mirabel, Que.

Fitzgibbon, asked Wednesday if jobs would be maintained in Quebec, replied that he believed "there will be good news", without stating whether the province would again provide financial support to the multinational company.

Bombardier said in January that it was "reassessing its ongoing participation" in its partnership with Airbus to manufacture the A220.

The wings for the A220 are made at Bombardier's plant in Belfast and it also supplies other Airbus parts.

Bombardier is "actively pursuing options that would allow it to accelerate deleveraging" and pay down debt, the company added. But after some big failures, layoffs and criticism over executive bonuses, this time around may be different.

While A220 orders have since started rolling in, Bombardier would need to inject more money into the program to ramp up production. Instead, Premier Francois Legault says the goal is to protect the government's US$1-billion investment in the A220 in 2016.

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