Home News Analyst: Airbus- Bombardier Deal Awaits CSeries Jet sales Jumpstart in Asia

Analyst: Airbus- Bombardier Deal Awaits CSeries Jet sales Jumpstart in Asia


The deal for a majority stake of Airbus SE in CSeries jet programme of Bombardier Inc. is expected in jumpstarting sales of the Canadian airlines in Asia, as per analyst. The Canadian form could dart 300 percent tariff by manufacturing jets in Alabama.

This deal by Airbus-Bombardier will be giving the European plan maker an interest of 50.01% in the programme of CSeries, whilst giving a better sales network to the jet. The plane with 110-130 seats has not secured any new order for the last 18 months, and is now being threatened by a 300% possible duty on imports of the U.S.

The Singapore-based chief analyst at CAPA, Brendan Sobie said to Reuters on Tuesday; “Interest in the CSeries has been low in this region and having Airbus supporting the programme could be a big boost”.

In Asia, the Korean Airlines Co. is by far the narrowbody jet’s only customer, and is slated for taking a soon delivery of the CS300 aircrafts first of the 10. In Asia airbus has a much strong hold in the market than Bombardier that is in a middle of the plan of 5-year turnaround, after taking bankruptcy into consideration. It is because of a crash-crunch after it developed several plane programmes concurrently.

He also said; “Potential buyers of the CSeries are now given comfort with Airbus becoming a major shareholder thus ensuring stability in the programme”.

In Asia, Airlines have held back more from placing orders because of the fact of Bombardier’s weak financial position that has placed the programme of CSeries in jeopardy.  This was said by ShukorYuusof, who is founder of the aviation advisory firm, Endau analytics, based in Malaysia.

For a comment on the deal of the Airbus-Bombardier, multiple Asian-Airlines couldn’t be reached right after.

While this deal may effectively reinforce the global duopoly of Boeing Co. and Airbus, it would also enhance the appeal of CSeries to active buyers, as said by Andrew Herdman, the Director General of the Association of Airlines of Asia Pacific.