Airbus and Bombardier to close C Series partnership on July 1; GECAS launches START

CSALP, based in Mirabel, was originally established between Bombardier and IQ, and will now benefit from Airbus’ global reach, scale, procurement organization and expertise in selling, marketing and producing the C Series aircraft. As previously announced, Bombardier will continue with its current funding plan of CSALP. Bombardier will fund the cash shortfalls of CSALP, if required, during the second half of 2018, up to a maximum of US$225 million; during 2019, up to a maximum of US$350 million; and up to a maximum aggregate amount of US$350 million over the following two years, in consideration for non-voting participating shares of CSALP with cumulative annual dividends of 2%. Any excess shortfall during such periods will be shared proportionately amongst CSALP’s Class A shareholders. Airbus will consolidate CSALP effective from July 1, 2018, onwards. Further financial information on the transaction will be provided later this year.