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BUSINESS REPORT: Blockbuster Airbus-Bombardier deal may be best we could hope for

Regis Duvignau /Reuters

Bombardier’s back was to the wall and Airbus – who were turned away by Bombardier in 2013 negotiations – and it had to give away half the store to stay viable with their new C-Series passenger aircraft.

In fact, without the deal, it is questionable whether Bombardier’s C-Series aircraft would have survived, given the bloated 300 per cent duty levied by the U.S. Trade Department.

However, once again the losers will ultimately be the Canadian taxpayers, both Federally and in Quebec, who have in excess of US$1.3-billion in this deal. That does not even count previous government largesse to keep those important Quebec voters employed.

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The Airbus Alabama assembly plant gives Bombardier the U.S. content to break into the American market with the new jetliner, but so far there are no guarantees from either side that some of those Quebec production jobs won’t also end up in Alabama down the road.

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