The Globe and Mail reports in its Friday edition that Bombardier is making a final exit from commercial plane-making in a bid to preserve cash, closing the book on its money-losing, big-league dream in a deal that sees Quebec increase its investment. The Globe's
Nicolas Van Praet writes that the Montreal manufacturer said Thursday that it has pulled out of its joint venture with Airbus and Quebec that builds the European plane maker's A220 single-aisle jet.
Bombardier's proceeds from the exit are considered modest by analysts and will not have a material impact on any debt repayments.
The sale closes Bombardier's last remaining commercial aircraft investment. For all the resources and money plowed into the project, it is walking away with the equivalent of $1.3-billion.
"The strategy was always to exit commercial aircraft while protecting jobs," said chief executive officer Alain Bellemare on a conference call with analysts Thursday. "We've done that in a very responsible manner."
Airbus will pay Bombardier $600-million to increase its share in the partnership to 75 per cent, from just over 50 per cent. Meanwhile, the Quebec government will boost its share in the venture to 25 per cent from 16 per cent.
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