Bombardier completes exit from commercial aerospace with A220 sale
Bombardier Inc. announced it has finalized the sale of its remaining stake in the A220 program to Airbus and the province of Quebec for approximately $600 million cash. This transaction marks the company's complete exit from commercial aerospace.
Montreal, Canada – Bombardier Inc. has concluded its involvement in the commercial aerospace sector by selling its final stake in the A220 program. The agreement with Airbus SE and the Government of Quebec will provide Bombardier with approximately $600 million in cash proceeds and eliminates future investment obligations totaling around $700 million.
The sale completes Bombardier's strategic shift, moving the company away from commercial aircraft manufacturing to focus solely on its business aircraft and rail divisions. The company had previously stated that its commercial aerospace operations were a financial drain, incurring losses and significant cash consumption.
Bombardier also reported its full-year 2019 financial results, which were in line with preliminary figures previously disclosed. The company's consolidated revenue reached $15.8 billion for the year. Bombardier confirmed it is actively pursuing strategic options to accelerate debt reduction and strengthen its financial position.
Looking ahead to 2020, Bombardier anticipates double-digit organic revenue growth, projecting total revenues to exceed $15 billion. This growth is expected to be driven by increased deliveries of its Global 7500 business jets and a ramp-up in its rail transportation segment.