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Airbus, Quebec reach $1.2 billion investment deal for A220 jet program – Reuters
MONTREAL, Feb 4 (Reuters) – Europe’s Airbus (AIR.PA) and Quebec said on Friday they have agreed to a $1.2 billion investment deal that would allow the Canadian province to remain in the loss-making A220 jet program until the venture is likely to turn profitable.
Under the deal, Airbus would invest $900 million, while the Quebec government would put $300 million into the program, according to a statement.
The deal would defer by four years the period when Airbus buys out Quebec’s 25% stake in the small jetliner from 2026 to 2030, it said.
The program is not expected to be profitable before 2025.
While the 110-130 seat A220 has benefitted from airlines’ preference for relatively small jets during the pandemic, Airbus has yet to secure low enough prices for many of the plane’s components to push the A220 project into the black. read more
Reuters reported on the deal earlier, citing sources. read more
Contracts with key suppliers such as Raytheon Technologies (RTX.N) were originally set under Canada’s Bombardier , which lacked purchasing power as it tried to enter the mainstream jet market and ceded control of the jet program to Airbus in 2018.
Airbus was expected to use its global marketing network and higher purchasing power from suppliers to move the project into the black, but while sales have soared industry sources say it has struggled to win the concessions it wants from suppliers.
It has secured price cuts of some 20% from key suppliers but is pushing for another comparable cut, while looking at whether some parts could be redesigned to make them more efficient to produce, industry sources said.
The A220 is built both at an Airbus plant in the Montreal area and at the Mobile facility in Alabama.
In 2020, Canada’s Bombardier exited the program, the first all new narrow-body jet in 30 years initially called the CSeries, after it was beset with delays and cost overruns.
The deal gave Airbus a 75% stake in the A220 program and the Canadian province of Quebec was left with the remaining 25% after agreeing to invest $1 billion in the CSeries back in 2015.
Talks about an agreement were reported in January by the Journal de Montreal.
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Reporting By Allison Lampert in Montreal and Tim Hepher in Paris; Additional reporting by David Ljunggren in Ottawa and Ismail Shakil in Bengaluru; Editing by Elaine Hardcastle, Kirsten Donovan
Our Standards: The Thomson Reuters Trust Principles.
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TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
The Canadian Press. All rights reserved.
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