Page 7 - AAA NOVEMBER - DECEMBER 2017 Online Magazine
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COVER STORY










































        Chess Moves



        The Airbus-Bombardier C Series partnership could revive the fortunes of the technologically
        advanced but slow-selling jetliner
        By Arun Sivasankaran
        Airbus’ decision to buy a majority stake in  The Deal                   Airbus’ point of view as well. With the single
        Bombardier’s C Series jetliner programme   According to the terms of the deal that is   aisle market representing a whopping
        not only breathes life into a programme that   expected to close in the second half of 2018,   70 percent of the expected global future
        was  clearly  struggling  for  survival  but  also   Airbus will acquire a 50.01 percent interest   demand for aircraft, the partnership with
        gives the Canadian plane-maker a big boost   in C Series Aircraft Limited Partnership   Bombardier brings together two product
        in its trade dispute with Boeing. It also has   (CSALP), which manufactures and sells the   lines that have the potential to dominate the
        the potential to drastically alter the booming   aircraft. Bombardier  and Investissement   market.  While  the  C  Series  aircraft  ranges
        single-aisle market landscape.      Québec  (IQ)  will own  31  percent  and 19   from 100 to 150 seats, Airbus’ A320 family
           Airbus’ global reach and scale as well   percent respectively.       focuses on the higher end of the single-aisle
        as it supply chain expertise will not only   Airbus will spend nothing for its majority   business with 150-240 seats. The partnership
        significantly reduce C Series production   stake,  a clear indication  that  Bombardier   enables the two companies to cover the
        cost, thus making it a   more attractive   realizes  how crucial  the European  plane   entire spectrum and to take on Boeing’s 737.
        market  proposition, but  also provide  the   maker’s involvement is in turning its fortunes   It has been forecast that as many as 6,000
        technologically advanced aircraft with the   around. Losing control over the programme,   new aircraft in the 100-150 seat market
        kind  of  sales  network  and  product  support   as Bombardier will due to the deal, is a   segment  will  be  introduced  over  the  next
        that it deserves. After the first round of   small price to pay for staying relevant in an   20 years.  According to Boeing’s 2017-2036
        discussions between Airbus and Bombardier   increasingly competitive market.  With Airbus   current market outlook, 41,030 new aircraft
        regarding the C Series jet in 2015 went   taking control of the C Series, Bombardier   deliveries are expected during the period,
        nowhere, John Leahy, Airbus Chief Operating   will be able to focus on its moneymaking rail   with 28,530 being single isle aircraft. Fleet
        Officer - Customers, had described the plane   and business jet divisions.  growth will be most pronounced in the Asia
        as an “orphan.” Now, it clearly isn’t.  The deal makes perfect sense from   Pacific region, with carriers in the region
                               WWW.GBP.COM.SG                                  NOVEMBER / DECEMBER 2017  ASIAN AIRLINES & AEROSPACE  7
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