Bombardier and Airbus End Talks over CSeries Investment

Posted on October 12, 2015 John Smith Bombardier and Airbus End Talks over CSeries Investment

Bombardier Inc. and Airbus Group SE have recently ceased communication over possible business opportunities for both jet makers. The two companies have verified that negotiations between the two have reached an end. These business opportunities arose when Bombardier had reportedly approached Airbus for financial support in an attempt to boost its development of their CSeries jets. In return, Airbus would have received a controlling stake in the program.

The lower end of the global airplane market is currently being dominated by Airbus and Boeing. This lower end airplane market happens to be the same marketplace in which the CSeries of aircraft would be competing in. Bombardier’s CSeries is hoped to compete against the Airbus A320, Comac C919, and Boeing 737. Neither Bombardier nor Airbus have offered any sort of details as to why their business discussions came to an end. In separate releases, the two companies had confirmed that they were both searching for strategic initiatives, but the discussions between Airbus and Bombardier have been discontinued.

"Following the Airbus Group's statement indicating that the group held talks with Bombardier regarding certain business opportunities, Bombardier confirms that such discussions occurred and are no longer being pursued,"

said Bombardier in an official statement. Bombardier also confirmed that they will continue pursuing their options, such as an industry consolidation. Currently, Bombardier has received 243 firm orders for their CSeries jet airplane. This puts the company behind their target for 300 firm orders by next year. Initially named C110 and C130, Bombardier Aircraft's CSeries is a twin-engine, narrow-body, medium-range jet airliner.

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