“Canada pushed for Airbus deal as Bombardier courted China”

Anything for Bombardier:

The Canadian government encouraged Bombardier to make a deal with Airbus SE for its CSeries planes to thwart a potential venture with Chinese investors, according to five sources familiar with the matter.

It signaled its preference for Airbus after Bombardier failed to reach an agreement with Boeing Co earlier this year that would have given the U.S. company a stake in the CSeries jetliners, according to the sources. The Canadian government’s role has not been previously reported.

 

Prime Minister Justin Trudeau’s administration took a calculated risk in steering Bombardier toward Airbus, according to the sources. It helped save a key product for Bombardier and likely resolved a brewing trade dispute with the United States, but potentially set back efforts to improve trade and economic ties with China.

The deal with Airbus came at a critical time for Bombardier. Its $6 billion CSeries program, already losing money, had become the subject of a trade dispute in which Boeing charged in a complaint to U.S. authorities that the jetliners benefited from Canadian government subsidies and unfair pricing.

Bombardier had considered a Chinese partnership as early as 2015, after talks about a possible merger with Airbus became public and fell apart. This year, as negotiations with Boeing over a CSeries partnership faltered and concerns about the future of the program mounted, Bombardier’s interest in a deal with China intensified, two sources said.

The prospect of such a deal raised concern within the Canadian government, two of the sources said, where officials believed jobs or technology could be “siphoned away” to China. They also expressed uneasiness about what some saw as inadequate Chinese safeguards against intellectual property theft.

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  • moraywatson

    Bottom line, more winning for Trump! And as always, what’s good for America is good for freedom loving people everywhere.

    • Trudeau was in a vise and thought he made the smart play.

      But this is Trudeau we’re talking about.

    • Ho Hum

      It’s not good for Canada. When Trump slapped a 300% tariff on the C Series jet Bombardier was forced to give up control of the program to Airbus for 1$ after investing $6 Billion and 1,000’s of Canadian jobs will be lost to Alabama where Airbus will set up final assembly. Trump’s bullying has cost Canada jobs and this is just the beginning. Canada is a small country and bully’s like to beat-up on those that are smaller. You will never see Trump impose 300% tariff’s on Chinese products or products from Europe.

      • moraywatson

        Subsidizing Bombardier with federal tax dollars is not good for Canada. Trump requiring Bombardier to compete on a level playing field will force Bombardier to become a company that is good enough to survive in the marketplace, and PAY taxes instead of receiving MINE.

  • simus1

    Seems sort of disjointed. Boeing already has ties with other regional jet makers around the world and Airbus is supposed to be tight with China. China already makes RJ subassemblies for Bombardier. Bombardier has strengths in regional jet avionics packaging and coping with the American certification process. China has an upcoming need for regional jets in huge numbers but there is no way they will permit foreign makers to supply their product from offshore in any meaningful quantity over the long term.