Bombardier this week announced that it has made the strategic decision to focus exclusively on business aviation and plans to accelerate its deleveraging through the sale of its rail business.
“Going forward, we will focus all our capital, energy and resources on accelerating growth and driving margin expansion in our market-leading $7.0 billion business aircraft franchise,” said Alain Bellemare, President and CEO, Bombardier Inc. Bombardier has signed a Memorandum of Understanding (MOU) with Alstom SA and the Caisse de dépôt et placement du Québec for the sale of its Transportation business to Alstom. Last week, Airbus, the Government of Québec and Bombardier Inc. have agreed upon a new ownership structure for the A220 programme, whereby Bombardier transferred its remaining shares in Airbus Canada to Airbus and the Government of Québec. This agreement brings the shareholdings in Airbus Canada, responsible for the A220 (the former CSeries), to 75 percent for Airbus and 25 percent for the Government of Québec respectively. The Government’s stake is redeemable by Airbus in 2026 - three years later than before. As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Québec. For 2020, Bombardier Aviation expects to deliver 160 or more aircraft.