Airbus, Quebec reach $1.2 bln investment deal for A220 jet program

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Europe's Airbus and Quebec on Friday said 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.

An employee works on an Airbus A220-300 at the Airbus facility in Mirabel, Quebec, Canada February 20, 2020. REUTERS/Christinne Muschi/File Photoand Quebec on Friday said 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.

The investment would help the A220 program globally to support an increase in production, Benoit Schultz, chief executive of Airbus' Canadian unit, told a press briefing. The A220 is built both at an Airbus plant in the Montreal area and at the Mobile facility in Alabama.The A220, previously known as the CSeries, is a 110- to 130-seater aircraft, a little smaller than Airbus’s mainstay A320 jet. Reuters reported on the deal earlier, citing sources.

"At that time we're going to have a fair market value assessment and I'm very hopeful we're going to make money and recuperate the original investment," he said.

 

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