Bombardier gives up jetliner ambitions for luxury planes, trains

By relinquishing control of its C Series jets to longtime rival Airbus, Bombardier is scaling back its ambitions to build jetliners for the world’s airlines. The deal marks a step away from what had been touted as the crown jewel of Canada’s biggest aerospace company before it was tarnished by cost-overruns and trade disputes. With the future of the C Series now up to Airbus, the Montreal-based manufacturer is likely to sharpen its focus on private jets and trains -– two businesses with higher margins. “This is Bombardier opening the door to the transition away from commercial aviation,’’ said Karl Moore, a professor of management strategy at Montreal’s McGill University. “I’m not sure they had much of a choice. Surely they will have interesting opportunities in executive jets and trains, and they can reinvest in those.’’ Private business jets have been Bombardier’s most profitable division, while commercial aircraft –- weighed down by losses tied to the development of the C Series -– ranked among the company’s worst-performing. Bombardier’s commercial unit includes older products such as the CRJ regional jet and the Q400 turboprop. The C Series is Bombardier’s biggest and most expensive commercial jet program, often billed by the company as a “game-changing’’ aircraft with superior economics and fuel efficiency. The deal with Airbus gives the European planemaker majority control with a 50.01% stake. Bombardier will retain about 31%, and the Quebec government will hold 19%.<br/>