Canada Bombardier exits commercial business

Canadian aerospace company brings an end to the era of bombardiers as it is getting out of the commercial aviation production to pay debt worth billions of dollars.
The company is bankrupted with a debt of about 10 billion dollars, losing a total of 1.61 billion dollars in 2019.
Bombardiers got rid of remaining ventures in the CSeries plane-known as the Airbus SE A220 program—to airbus by the aircraft designer’s European ancillary Stelia aerospace.
The cost of sale is $591 million.
The market share of Airbus jumped to 75 percent from about 50 percent as the Quebec province’s ownership is to rise from 16 percent to 25 percent. The province supported the company by granting 1 billion Canadian dollars to sustain.
The deal is a negation of Bombardier’s loyalty to draw investments worth 700 million dollars in a jet plan.
Airbus assured the sale will not impact 3,300 employees in Quebec.
Alain Bellemare, chief of bombardier said: “The CSeries was a cash drain”. He adds “The strategy was always to exit commercial aircraft while protecting jobs”.
“We’ve done that [in] a very responsible [manner]”.
The A220 was praised by airline for its cabin size and fuel efficiency, however, the plane was 2 billion dollars over-budget and two years late.
Bombardiers announced it has entered a contract to sell its local-jet operations and wing plant on northern island.
About 3,600 jobs at the wing plant are at stake, as there are no details regarding the impact of the sale on employees.–Worldwide News

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