Airbus and the Quebec government are extending their partnership in the A220 programme, following a commitment by the two sides to inject up to $1.2 billion in financial support.
The airframer will contribute $900 million with the government, through its Investissement Quebec arm, will supply the $300 million balance.
This funding is aimed at increasing A220 industrial activity. Airbus is trying to cut costs on the A220 programme and raise output to 14 aircraft monthly.
The government says the funding measure will “give the A220 programme time to create value for the benefit of the investments already made”.
Airbus and Quebec had already previously pushed back a deadline for the airframer to buy out the government’s shareholding in the Airbus Canada partnership, to 2030.
But under the latest agreement this threshold will be further extended to 2035.
The two sides’ investments are proportional to their interests in the A220 programme, which was acquired by Airbus in mid-2018 from Bombardier, under which it had been branded the CSeries.
As a result the government will retain its 25% share.
“Since Airbus joined the partnership with the government of Quebec in 2018, we have invested significantly in the A220 programme to provide it with all the industrial fundamentals, processes and skills that will ensure it achieves the success it deserves,” says Airbus Canada president Benoit Schultz.
Airbus has made commitments intended to maximise the economic benefits of its activities in Quebec by 2035.
Quebec premier Francois Legault says the government is “consolidating the presence” of Airbus and investing to build a “strong, prosperous and forward-looking economy”.
