Bombardier wants out of Airbus deal over A220

Bombardier reported ‘negative earnings’ – corporate speak for an unaudited expected loss, of US$1.2 billion.

It’s also facing obligations under the deal with Airbus to pay $250m in investments in 2020 and another $350m in 2021 towards building the aircraft in the US. Obligations it doesn’t want to keep according to reports.

The company share price has collapsed and its struggling to to maintain momentum.

There’s a strong likelihood that Airbus have always expected this would be the case and have been waiting for the opportunity to buy out the rest of the programme. The chances are they could pay nothing for it as Bombardier would happily give it up to save the money. They already feel they would never see a return on their investment.

Airbus delivered 48 A220 in 2019 and has another 445 on order and an aggressive campaign to sell more. It’s also said to be looking at an A220-500 and lately rumours of a -600 have surfaced.