Airbus and Bombardier announced on Monday (Oct. 16) that the two companies will become partners for the CSeries commercial jet program. Under the agreement, the French group will take a 50.01% stake in the C Series Aircraft Limited Partnership (CSALP), which is the parent company of the CSeries CSeries, aircraft with 100 to 150 seats – the main competitor of the E2 family of Brazilian Embraer jets. development, production and sales program. Bombardier will own 31% of the company and the government of the province of Quebec will hold the remaining 19%.
This is a difficult moment for Airbus – the main rival of Chicago-based Boeing- which was rocked with fresh corruption allegations last week of an alleged system of outside advisers and secret slush funds. Both military and civil aircraft orders are said to have been tainted, with investigations under way in the UK, France, Austria and Germany, said Handelsblatt.
Embraer recently accused Bombardier of receiving illegal subsidies from the Canadian government. The Brazilian manufacturer’s protests prompted the Brazilian government to question the Canadian financing programs for Bombardier at the World Trade Organization (WTO). And a panel was opened to investigate the allegations.