Airbus-Bombardier deal expected to jumpstart CSeries jet sales in Asia -analysts

Airbus’s deal for a majority stake in Bombardier’s CSeries jet programme is expected to jumpstart sales of the Canadian aircraft in Asia, analysts said. The Airbus-Bombardier deal will give the planemaker a 50.01% interest in the CSeries programme, while the jet will get a better sales network. The 110-to-130 seat plane has not secured a new order in 18 months and is being threatened by a possible 300% duty on US imports. In Asia, Korean Air Lines so far the only customer of the narrowbody jets and is slated to soon take delivery of the first of 10 CS300 aircraft. “Interest in the CSeries has been low in this region and having Airbus supporting the programme could be a big boost,” said Brendan Sobie, Singapore-based chief analyst at CAPA Centre for Aviation. Airbus has a much stronger market position in Asia than Bombardier, which is in the middle of a 5-year turnaround plan after considering bankruptcy because of a cash-crunch as it developed multiple plane programmes simultaneously. Airlines in Asia have likely held back from placing orders due to concerns that Bombardier’s weak financial position placed the CSeries programme in jeopardy, said Shukor Yusof, founder of Malaysia-based aviation advisory firm Endau Analytics. “Potential buyers of the CSeries are now given comfort with Airbus becoming a major shareholder thus ensuring stability in the programme,” he said.<br/>