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Airbus and the Government of Québec become sole owners of the A220 Programme as Bombardier completes its strategic exit from Commercial Aviation

Airbus and the Government of Québec become sole owners of the A220 Programme as Bombardier completes its strategic exit from Commercial Aviation
  • Bombardier transfers its remaining interest in Airbus Canada Limited Partnership (Airbus Canada) to Airbus SE and the Government of Québec
  • Airbus now holds 75 percent of Airbus Canada with the Government of Québec increasing its holding to 25 percent for no cash consideration
  • Bombardier work packages for the A220 and A330 will be transferred to Airbus, through its subsidiary Stelia Aerospace, securing 360 jobs in Québec
  • Bombardier will receive US$591M, net of adjustments, of which US$531M was received at closing, and is released of its future funding capital requirement to Airbus Canada
  • Over 3,300 Airbus jobs secured in Québec

Amsterdam / Montreal – Airbus SE (EPA: AIR), the Government of Québec and  Bombardier Inc. (TSX: BBD.B) have agreed upon a new ownership structure for the A220 programme, whereby Bombardier transferred its remaining shares in Airbus Canada Limited Partnership (Airbus Canada) to Airbus and the Government of Québec. The transaction is effective immediately.

This agreement brings the shareholdings in Airbus Canada, responsible for the A220, to 75 percent for Airbus and 25 percent for the Government of Québec respectively. The Government’s stake is redeemable by Airbus in 2026 – three years later than before. As part of this transaction, Airbus, via its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and A330 work package production capabilities from Bombardier in Saint-Laurent, Québec.

This new agreement underlines the commitment of Airbus and the Government of Québec to the A220 programme during this phase of continuous ramp-up and increasing customer demand. Since Airbus took majority ownership of the A220 programme on July 1, 2018, total cumulative net orders for the aircraft have increased by 64 percent to 658 units at the end of January 2020.

The single aisle market is a key growth driver, representing 70 percent of the expected global future demand for aircraft. Ranging from 100 to 150 seats, the A220 is highly complementary to Airbus’ existing single aisle aircraft portfolio, which focuses on the higher end of the single-aisle business (150-240 seats).

As part of the agreement, Airbus has acquired the Airbus A220 and A330 work package production capability from Bombardier in Saint-Laurent, Québec. These production activities will be operated in the Saint Laurent site by Stelia Aéronautique Saint Laurent Inc., a newly created subsidiary of Stelia Aerospace, which is a 100 percent Airbus subsidiary.

Stelia Aéronautique Saint-Laurent will continue the production of the A220 cockpit and aft fuselage production, as well as A330 workpackages, for a transition period of approximately three years at the Saint-Laurent facility. A220 workpackages will then be transferred to the Stelia Aerospace site in Mirabel to optimize the logistical flow to the A220 Final Assembly Line also located in Mirabel. Airbus plans to offer all current Bombardier employees working on the A220 and A330 work packages at Saint-Laurent opportunities around the A220 programme’s ramp-up, ensuring know-how retention as well as business continuity and growth in Québec.

At the end of January 2020, 107 A220 aircraft were flying with seven customers on four continents. In 2019 alone, Airbus delivered 48 A220s, with the further ramp-up to be continued.

He is an aviation journalist and the founder of Jetline Marvel. Dawal gained a comprehensive understanding of the commercial aviation industry.  He has worked in a range of roles for more than 9 years in the aviation and aerospace industry. He has written more than 1700 articles in the aerospace industry. When he was 19 years old, he received a national award for his general innovations and holds the patent. He completed two postgraduate degrees simultaneously, one in Aerospace and the other in Management. Additionally, he authored nearly six textbooks on aviation and aerospace tailored for students in various educational institutions. jetlinem4(at)gmail.com

Aerospace

Pakistan’s Ambitious Plan to Acquire and Produce Chinese FC-31 Stealth Fighter

Pakistan’s Ambitious Plan to Acquire and Produce Chinese FC-31 Stealth Fighter

Pakistan is embarking on an ambitious endeavor to bolster its air defense capabilities with the acquisition and potential local production of the Chinese FC-31 stealth fighter jet.

Talks are reportedly underway between the Pakistan Air Force (PAF) and the Shenyang Aircraft Corporation, the developer of the FC-31, signaling a significant leap forward for Pakistan’s military aviation prowess.

The FC-31, a mid-sized, twin-engine fifth-generation fighter, promises advanced air combat capabilities, including stealth technology that surpasses anything currently in the PAF‘s fleet. With plans to retire the JF-17 production line by 2030, the FC-31 could emerge as the new flagship aircraft, offering unmatched performance and versatility.

Experts speculate that Pakistan’s interest in the FC-31 could also signal broader implications for the international market. As China develops both land and carrier versions of the FC-31, analysts foresee it becoming a cost-effective alternative to pricier options like the F-35, potentially challenging the dominance of the US aerospace industry and reshaping global strategic rivalries.

Adding complexity to the deal is China’s push for the WS-13 engine, previously rejected for the JF-17 but now under consideration for both the FC-31 and future JF-17 variants. Engine standardization could streamline logistical and maintenance processes for the PAF, further enhancing the appeal of the FC-31.

While negotiations continue, the success of the FC-31 acquisition and local production hinges on several factors, including the outcome of the WS-13 engine discussions. Pakistan’s pursuit of the FC-31 comes amidst its eagerness to replace its aging fleet, with previous attempts to upgrade its F-16s by the United States due to geopolitical pressures.

Amidst these developments, Pakistan previous interest in the Turkish-made Kaan fifth-generation fighter underscores its eagerness to replace its aging fleet. Despite previous attempts to secure upgrades for its F-16s from the United States, Pakistan’s quest for advanced aerial capabilities has led it to explore alternative avenues, with the FC-31 emerging as a promising contender in its pursuit of air superiority.

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Aviation

China’s Indigenous HH-100 UAS Successfully Completes First Flight

China’s Indigenous HH-100 UAS Successfully Completes First Flight

In a significant milestone for China’s aviation industry, the HH-100 aerial commercial unmanned transportation system successfully completed its maiden flight, as announced by the Aviation Industry Corporation of China (AVIC) on Wednesday.

The HH-100 demonstrator took to the skies for its inaugural flight at a general aviation airport in Xi’an, located in northwest China’s Shaanxi Province. This successful test was conducted by AVIC, China’s leading aircraft manufacturer, marking a pivotal step in the development of the country’s unmanned aerial vehicle (UAV) capabilities.

Developed independently by AVIC XAC Commercial Aircraft Co., Ltd., a subsidiary of AVIC based in Xi’an, the HH-100 consists of two main components: an unmanned aerial vehicle and a ground-based command-and-control station. This innovative system is designed to offer a cost-effective, high-payload solution for various transportation and logistical needs.

The HH-100 is notable for its low cost and large tonnage capabilities. With a designed maximum take-off weight of 2,000 kilograms and a payload capacity of 700 kilograms, it can transport approximately 4 cubic meters of cargo over a range of 520 kilometers. The drone’s maximum cruise speed is 300 kilometers per hour, and it can operate at altitudes up to 5,000 meters.

Primarily intended for feeder logistics, the HH-100 is also equipped to participate in a variety of other roles, including forest and grassland firefighting, fire monitoring, transportation and delivery of rescue materials, relay communication, and artificial rain enhancement. This versatility makes it a valuable asset in both commercial and emergency response operations.

Looking ahead, AVIC plans to develop a series of products based on the HH-100 platform, with models capable of carrying 5 tons, 10 tons, and even larger payloads. These future developments aim to meet the growing demand for large-scale, intelligent, low-cost, and highly reliable unmanned cargo planes.

The HH-100’s successful first flight marks an important achievement for AVIC and China’s aviation sector, showcasing the potential of homegrown technology to advance the country’s capabilities in unmanned aerial transportation. With its impressive range of features and applications, the HH-100 is poised to play a significant role in enhancing air-ground transportation connectivity and addressing various logistical challenges in the region.

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Aviation

Russia’s Venture into Spare Parts Production for Western-Made Jets

Russia's Venture into Spare Parts Production for Western-Made Jets

In a strategic move to mitigate the challenges posed by the shortage of spare parts for foreign-made passenger aircraft, Russian carriers are charting a new course by turning to domestic alternatives. At the forefront of this shift are two groundbreaking projects unveiled at the St. Petersburg International Economic Forum on June 6.

Leading the charge is Protektor Group, a prominent Russian MRO provider, which has committed a substantial investment of RUB3.5 billion ($39 million) to establish a cutting-edge facility near Moscow Domodedovo airport.

This facility is slated to specialize in the production of spare parts tailored for Airbus A320 and Boeing 737 narrowbody jets, with operations expected to commence in 2026. With a projected workforce of 800 employees, the facility aims to address the pressing demand for critical components in the aviation sector.

This initiative aligns seamlessly with broader governmental endeavors outlined in June 2022, which envisioned the manufacture of 1,036 airplanes using solely Russian parts by 2030. Bolstering this ambition, the state allocated a substantial sum of 283 billion rubles (U.S. $3.1 billion) in January 2024 to propel the production of 609 aircraft, with a particular emphasis on medium-haul models.

Protektor’s trajectory towards this pivotal milestone has been marked by notable achievements, including receiving production organization approval from Rosaviatsia in 2024. Prior to this, the company had earned certification for the overhaul of landing gear for Boeing 737s, solidifying its position as a trusted entity in aircraft maintenance.

Beyond the realm of spare parts production, the Russian aviation industry is poised for a significant transformation as it gears up to redefine its identity. Sergey Chemezov, the head of Rostec, the state-owned conglomerate overseeing aerospace, engineering, and defense sectors, has unveiled ambitious plans to resurrect the renowned ‘Yakovlev‘ brand. This rebranding initiative extends across the spectrum of Russian-made airliners, signaling a new era of innovation and prominence.

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