Airbus has agreed to buy a majority stake in Bombardier CSeries jetliner program, grabbing control of a struggling competitor at the second attempt and giving the Canadian plane-and-train maker an unexpected boost in its costly trade dispute with Boeing. Laura Frykberg reports.
Airbus coming to the rescue of Bombardier in its battle with Boeing. Agreeing to buy a majority stake in the Canadian company's CSeries jets destined for the U.S. Potentially saving it from paying a 300 percent import tariff. (SOUNDBITE) (English) AIRBUS CEO, TOM ENDERS, SAYING: "The CSeries fits very, very well with our 320 family and it's a world-class aircraft. We think it's good news for airlines, customers, that are already potential customers and shareholders on both sides. That's why we call it a 'win-win'." Under the deal the jets will be assembled in Airbus' Alabama factory. What's less clear is whether the wings will still be made in Bombardier's Northern Ireland plant. Safeguarding thousands of jobs. (SOUNDBITE) (English) BOMBARDIER CEO, ALAIN BELLEMARE, SAYING: "The assembly in the U.S. can resolve the issue because then it becomes a domestic product and therefore a domestic product will not have the import tariff applied to this.." Airbus shares shot up 2.5 percent. But Boeing's called the tie-up a questionable deal between two of its competitors. It accuses Bombardier of putting its jets on the U.S. market below cost. And receiving unfair subsidies from the Canadian government. SOUNDBITE (English) IG SENIOR ANALYST, CHRIS BEAUCHAMP, SAYING: "I think it's really a bit unfair for Boeing to be too bitter about this. Certainly they have been bested in this particular competition and the focus I suppose for them now should be really on building better planes and competing in the marketplace directly, I think we should hope to move on from this really. Boeing may not make it that easy though. It's already locked in a separate trade dispute with Airbus that has lasted for thirteen years.