Airbus, Quebec agree to invest US$1.2b in A220 jet programme

[TORONTO] Airbus and the government of Quebec agreed on a US$1.2 billion investment that allows the Canadian province to remain an owner of the A220 jet programme for 4 additional years.

The French plane maker committed to investing US$900 million in the loss-making programme while Quebec will put up US$300 million, according to a statement on Friday (Feb 4).

Under the deal, the two sides can delay the date by which Airbus will buy Quebec's 25 per cent stake to 2030, the statement said. Previously the buyout was supposed to happen by 2026.

The A220 aircraft, originally known as the C Series, won praise for its fuel-efficient engines, composite wings and an airy cabin featuring large windows.

But the programme ran more than 2 years late and billions over budget, and developer Bombardier had trouble attracting buyers in an industry dominated for decades by Airbus and Boeing.

In 2018, Airbus stepped in and acquired a 50.1 per cent stake in the A220 programme and lifted its stake to 75 per cent 2 years later, while Bombardier transferred the remaining 25 per cent to the provincial government. BLOOMBERG