Experts are weighing in after learning European aircraft manufacturer Airbus would be buying a majority stake in Bombardier’s CSeries program.
Here’s what some of them have had to say:
“When we saw the [Quebec] government give Bombardier money, I’m not even a Quebec taxpayer and I thought that it was ridiculous. This is the result of government spending, and the dilution is not good news for Quebec taxpayers…There’s no denying that Bombardier is desperate. And so any time you give up an asset, your crown jewel, and you don’t receive any compensation for it – the writing is on the wall.””- Kash Pashootan, CEO and chief investment officer, First Avenue Investment Counsel
“Very good news for Airbus being able to get that strategic alliance with no cash. Being able to obtain the jobs in northern Ireland – Belfast, a region in the United Kingdom whose political party has been important in maintaining Prime Minister Theresa May’s survival…And it’s very good news for Airbus because it’s able to, theoretically, keep the tariff action - the trade action - from [U.S.] President Trump away, because it’s supposed to create jobs in Alabama.” -- Ashraf Laidi, CEO, Intermarket Strategy
“Boeing, you really have to be careful what you ask for. It really was a life or death situation for Bombardier. They can’t survive without a successful CSeries. … Boeing tried to really squash Bombardier from getting this big to this big, and instead created a monster much bigger than they could have ever anticipated.” – Jerry Dias, head, Unifor
“This company remains uninvestable…piece by piece they are carving this company up to try and keep it alive.” – Andrew McCreath, Commentator, BNN
“This is not a bad outcome. At the end of the day, it’s better to have a 30 per cent share of what will probably be a major success now rather than a majority share of something that frankly might not have survived.” - Richard Aboulafia, vice president, analysis, Teal Group