Bombardier may withdraw from the joint venture with Airbus

Created on 31.01.2020 16:09

Bombardier Inc., Canadian Aircraft and Engineering Corporation, is considering a withdrawing from a joint venture with Airbus SE for the construction of commercial aircrafts due to growing production costs, according to Interfax-Kazakhstan.

The press release of Canadian company stated, that a need to invest additional funds in financing of commercial aircrafts production might undermine future profits and adversely affect the cost of the joint venture.

The company, which owns about a third of the joint venture, agreed to invest up to $ 225 million in a partnership with Airbus in 2018, and a maximum of $ 350 million in 2019.The company also said, they are waiting for weaker financial indicators in the fourth quarter than initially anticipated. Upon the totals of the trading in Toronto, on Thursday, shares of Bombardier fell by 24%.

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