DGAP-Adhoc: Airbus SE: Airbus and the Government of Québec become sole owners of the A220 Programme as Bombardier completes its strategic exit from Commercial Aviation

DGAP-Ad-hoc: Airbus SE / Key word(s): Miscellaneous 
Airbus SE: Airbus and the Government of Québec become sole owners of the 
A220 Programme as Bombardier completes its strategic exit from Commercial 
Aviation 
 
13-Feb-2020 / 05:56 CET/CEST 
Disclosure of an inside information acc. to Article 17 MAR of the Regulation 
(EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG. 
The issuer is solely responsible for the content of this announcement. 
 
*Ad-hoc release, 12 February 2020* 
 
*Airbus and the Government of Québec become sole owners of the A220 
Programme as Bombardier completes its strategic exit from Commercial 
Aviation* 
 
*- *Bombardier transfers its remaining interest in Airbus Canada Limited 
Partnership (Airbus Canada) to Airbus SE and the Government of Québec 
 
- Airbus now holds 75 percent of Airbus Canada with the Government of Québec 
increasing its holding to 25 percent for no cash consideration 
 
- Bombardier work packages for the A220 and A330 will be transferred to 
Airbus, through its subsidiary Stelia Aerospace, securing 360 jobs in Québec 
 
- Bombardier will receive US$591M, net of adjustments, of which US$531M was 
received at closing, and is released of its future funding capital 
requirement to Airbus Canada 
 
- Over 3,300 Airbus jobs secured in Québec 
 
*Amsterdam / Montreal, 12 February 2020 *- Airbus SE (EPA: AIR), the 
Government of Québec and Bombardier Inc. (TSX: BBD.B) have agreed upon a new 
ownership structure for the A220 programme, whereby Bombardier transferred 
its remaining shares in Airbus Canada Limited Partnership (Airbus Canada) to 
Airbus and the Government of Québec. The transaction is effective 
immediately. 
 
This agreement brings the shareholdings in Airbus Canada, responsible for 
the A220, to 75 percent for Airbus and 25 percent for the Government of 
Québec respectively. The Government's stake is redeemable by Airbus in 2026 
- three years later than before. As part of this transaction, Airbus, via 
its wholly owned subsidiary Stelia Aerospace, has also acquired the A220 and 
A330 work package production capabilities from Bombardier in Saint-Laurent, 
Québec. 
 
This new agreement underlines the commitment of Airbus and the Government of 
Québec to the A220 programme during this phase of continuous ramp-up and 
increasing customer demand. Since Airbus took majority ownership of the A220 
programme on July 1, 2018, total cumulative net orders for the aircraft have 
increased by 64 percent to 658 units at the end of January 2020. 
 
"This agreement with Bombardier and the Government of Québec demonstrates 
our support and commitment to the A220 and Airbus in Canada. Furthermore it 
extends our trustful partnership with the Government of Québec. This is good 
news for our customers and employees as well as for the Québec and Canadian 
aerospace industry," said Airbus Chief Executive Officer Guillaume Faury. "I 
would like to sincerely thank Bombardier for the strong collaboration during 
our partnership. We are committed to this fantastic aircraft programme and 
we are aligned with the Government of Québec in our ambition to bring 
long-term visibility to the Québec and Canadian aerospace industry." 
 
"I am proud that our government was able to reach this agreement. We have 
succeeded in protecting paying jobs and the exceptional expertise developed 
in Québec, despite the major challenges we faced in this regard when we took 
office. We have consolidated the government's position in the partnership, 
while respecting our commitment not to reinvest in the program. By opting to 
strengthen its presence here, Airbus has chosen to focus on our talents and 
our creativity. The decision of an industrial giant like Airbus to invest 
more in Québec will help attract other world-class prime contractors," the 
Premier of Québec, François Legault, stated. 
 
"This agreement is excellent news for Québec and its aerospace industry. The 
A220 partnership is now well established and will continue to grow in 
Québec. The agreement will allow Bombardier to improve its financial 
situation and Airbus to increase its presence and footprint in Québec. It's 
a win-win situation for both the private partners and the industry," pointed 
out Pierre Fitzgibbon, Minister of the Economy and Innovation. 
 
With this transaction, Bombardier will receive a consideration of $591M from 
Airbus, net of adjustments, of which $531M was received at closing and $60M 
to be paid over the 2020-21 period. The agreement also provides for the 
cancellation of Bombardier warrants owned by Airbus, as well as releasing 
Bombardier of its future funding capital requirement to Airbus Canada. 
 
"This transaction supports our efforts to address our capital structure and 
completes our strategic exit from commercial aerospace," said Alain 
Bellemare, President and CEO Bombardier, Inc. "We are incredibly proud of 
the many achievements and tremendous impact Bombardier had on the commercial 
aviation industry. We are equally proud of the responsible way in which we 
have exited commercial aerospace, preserving jobs and reinforcing the 
aerospace cluster in Québec and Canada. We are confident that the A220 
program will enjoy a long and successful run under Airbus' and the 
Government of Québec's stewardship." 
 
The single aisle market is a key growth driver, representing 70 percent of 
the expected global future demand for aircraft. Ranging from 100 to 150 
seats, the A220 is highly complementary to Airbus' existing single aisle 
aircraft portfolio, which focuses on the higher end of the single-aisle 
business (150-240 seats). 
 
As part of the agreement, Airbus has acquired the Airbus A220 and A330 work 
package production capability from Bombardier in Saint-Laurent, Québec. 
These production activities will be operated in the Saint Laurent site by 
Stelia Aéronautique Saint Laurent Inc., a newly created subsidiary of Stelia 
Aerospace, which is a 100 percent Airbus subsidiary. 
 
Stelia Aéronautique Saint-Laurent will continue the production of the A220 
cockpit and aft fuselage production, as well as A330 workpackages, for a 
transition period of approximately three years at the Saint-Laurent 
facility. A220 workpackages will then be transferred to the Stelia Aerospace 
site in Mirabel to optimize the logistical flow to the A220 Final Assembly 
Line also located in Mirabel. Airbus plans to offer all current Bombardier 
employees working on the A220 and A330 work packages at Saint-Laurent 
opportunities around the A220 programme's ramp-up, ensuring know-how 
retention as well as business continuity and growth in Québec. 
 
At the end of January 2020, 107 A220 aircraft were flying with seven 
customers on four continents. In 2019 alone, Airbus delivered 48 A220s, with 
the further ramp-up to be continued. 
 
* * * 
For more information about A220-Family [1] 
 
*About Airbus* 
Airbus is a global leader in aeronautics, space and related services. In 
2018 it generated revenues of EUR  64 billion and employed a workforce of 
around 134,000. Airbus offers the most comprehensive range of passenger 
airliners. Airbus is also a European leader providing tanker, combat, 
transport and mission aircraft, as well as one of the world's leading space 
companies. In helicopters, Airbus provides the most efficient civil and 
military rotorcraft solutions worldwide. 
 
*Contacts for the media - Airbus* 
Marcella Cortellazzi (Mirabel) [e-mail] [phone] 
14 
Annabelle Duchesne (Mirabel) [e-mail] [phone] 
Anne Galabert (Toulouse) [e-mail] [phone] 
Stefan Schaffrath (Toulouse) [e-mail] [phone] 
 
*About Bombardier* 
With over 68,000 employees, Bombardier is a global leader in the 
transportation industry, creating innovative and game-changing planes and 
trains. Our products and services provide world-class transportation 
experiences that set new standards in passenger comfort, energy efficiency, 
reliability and safety. 
Headquartered in Montreal, Canada, Bombardier has production and engineering 
sites in 28 countries as well as a broad portfolio of products and services 
for the business aviation, commercial aviation and rail transportation 
markets. Bombardier shares are traded on the Toronto Stock Exchange (BBD). 
In the fiscal year ended December 31, 2018, Bombardier posted revenues of 
$16.2 billion US. The company is recognized on the 2019 Global 100 Most 
Sustainable Corporations in the World Index. News and information are 
available at bombardier.com [2] or follow us on Twitter @Bombardier [3]. 
 
*Contacts for the media - Bombardier* 
Jessica McDonald [e-mail] [phone] 
Patrick Ghoche [e-mail] [phone] 
 
*About Investissement Quebec* 
The mission of Investissement Québec is to participate actively in Québec's 
economic development by stimulating business innovation, entrepreneurship 
and the growth of exports and investment in every region of Québec. The 
Corporation provides enterprises and entrepreneurs with support services, 
including technology-based measures, as well as adapted financial solutions 
and investments. Through its Investissement Québec International division, 
the Corporation assists enterprises with exports and prospects for foreign 
investments. 
 
*Contacts for the media - Government of Québec* 
Ewan Sauves Prime Minister's Office Press Manager [phone] 
Mathieu St-Amand Press Manager of the Minister of the [phone] 
Economy & Innovation & Lanaudière region 
 
*About Stelia Aerospace* 
With a turnover of 2,4 billion euros and 7,100 employees worldwide (4,500 in 
France and 2,600 in North America, Tunisia, Morocco and Portugal), Stelia 
Aerospace is one of the world leaders in the field of aerostructures, pilot 
seats and Business Class and First Class passenger seats. 
Stelia Aerospace designs and manufactures the front fuselage sections for 
the entire Airbus family, as well as fuselage sections and specific 
sub-assemblies for Airbus, fully equipped wings for ATR, fully equipped 
central fuselages for Bombardier's Global 7500, and complex metallic and 
composite aerostructure parts for Boeing, Bombardier, Embraer, 
Northrop-Grumman. 
 
*Contact for the media - Stelia Aerospace* 
Caroline Brown [e-mail] [phone] 
 
13-Feb-2020 CET/CEST The DGAP Distribution Services include Regulatory 
Announcements, Financial/Corporate News and Press Releases. 
Archive at www.dgap.de 
Language:    English 
Company:     Airbus SE 
             P.O. Box 32008 
             2303 DA Leiden 
             Netherlands 
Phone:       [phone] 
Fax:         [phone] - 26481 
Internet:    www.airbusgroup.com 
ISIN:        NL0000235190 
WKN:         938914 
Indices:     MDAX 
Listed:      Regulated Market in Frankfurt (Prime Standard); Regulated 
             Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, 
             Munich, Stuttgart, Tradegate Exchange 
EQS News ID: 974481 
 
End of Announcement DGAP News Service 
 
974481 13-Feb-2020 CET/CEST 
 
 
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February 12, 2020 23:56 ET (04:56 GMT)