Airbus throws lifeline to Bombardier's Belfast workers by buying stake in C Series
Aviation giant Airbus has acquired a majority stake in Bombardier's C Series aircraft programme, the companies have announced.
The move has been hailed as a "positive step forward" by business secretary Greg Clark and comes after the US Government proposed a 300% duty on exports of the planes to the US amid an international trade dispute.
Unite spokesman Davy Thompson said his union had received assurances that the move would ensurer employment associated with the manufacture of C Series wings will remain in Belfast.
“The agreement will allow Bombardier to leverage Airbus’ global scale and reach, and open access to their supply-chain.
“Unite will continue our efforts to ensure the withdrawal of the US tariffs on the C Series but this is a welcome development – one that gives ‘breathing space’ to the C Series itself and which we anticipate should safeguard the future of C Series production jobs in Belfast for the foreseeable future," Mr Thompson concluded.
DUP leader Arlene Foster said it was "significant news" for Bombardier, which employs more than 4,000 people at its Belfast factories and is due to begin delivering a blockbuster order for up to 125 new C Series jets to Atlanta-based Delta Airlines next year.
Airbus has obtained a 50.01% stake in the C Series Aircraft Limited Partnership and the deal will help improve sales.
Statement on Airbus/Bombardier: pic.twitter.com/y8rXIZK1NN— The Boeing Company (@Boeing) October 17, 2017
Airbus CEO Tom Enders said: "Not only will this partnership secure the C Series and its industrial operations in Canada, the UK and China, but we also bring new jobs to the US."
Bombardier president Alain Bellemare said: "This partnership should more than double the value of the C Series programme and ensures our remarkable game-changing aircraft realises its full potential."
Last month, the US Department of Commerce (DoC) announced it would impose an interim tariff of nearly 220% on the jets - with unions warning the move could cost jobs in Belfast.
This is a good news story for Bombardier, for its workforce in Belfast and the local economy. Michelle O'Neill
A second preliminary levy of 80% has been loaded on the sales of the Canadian-based Bombardier.
Announcing the regulator's preliminary finding, US secretary of commerce Wilbur Ross said the subsidisation of goods by foreign governments was something that the President's administration "takes very seriously".
Bombardier labelled the determination "absurd", while in its response the UK Government said the statement was "disappointing" and pledged to defend UK interests "at the very highest levels".
Speaking about the Airbus-Bombardier deal, business secretary Greg Clark said: "Since Boeing initiated action against Bombardier, we have been active alongside our Canadian counterparts to work to secure the future of the C Series and safeguard jobs and manufacturing at Bombardier Shorts in Belfast, and the supply chain across the UK.
"We will continue to work closely with the companies to protect UK interests and with the Canadian government to ensure the unjustified case brought by Boeing is brought to a swift resolution.
"There is some way to go before the deal is completed and our number one priority throughout will be the workforce in Northern Ireland."
Belfast Telegraph Digital