The C Series Aircraft Flies To Greater Success

On July 1^st, the strategic partnership between Bombardier, Investissement Québec & Airbus on the C Series program officially took effect.

The limited partnership is now owned 50,01% by Airbus, approximatively 34% by Bombardier and 16% by Investissement Québec. Its head office, primary assembly line and related functions are based in Mirabel, Québec.

With this transaction complete, the C Series aircraft has landed at its new home on the Airbus.com website. For more information on the C Series, please visit http://www.airbus.com/aircraft/passenger-aircraft/c-series-family.html

But first, here are some reasons to celebrate…

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#1

The C Series now has access to Airbus’ extensive sales and marketing teams and to its worldwide network of customers. Consider this: Airbus’ A320 family of aircraft currently has a backlog of more than 6,100 aircraft, compared to 402 C Series orders since the launch of the program. Airbus is the best partner to help the C Series fly out into the world.

#2

The demand for the 100- to 150-seat single-aisle aircraft market is expected to represent more than 6,000 aircraft over the next 20 years. Since the C Series aircraft are widely recognized as the best aircraft in their category, we have the ambition to see them capture at least half of this market.

#3

Due to its scale, Airbus has built a global network of more than 7,700 suppliers, which are now accessible to the C Series. The program will benefit from bigger volumes, economies of scale and Airbus’ experience on assembly lines to help improve production methods and costs.

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#4

The C Series headquarters, primary final assembly line and related functions will remain in Mirabel, securing more than 2,200 jobs there, thousands more at Bombardier’s St-Laurent and Belfast sites and across the supply chain.

#5

With this partnership, Airbus joins the ranks of Bombardier, Bell Helicopter, CAE and Pratt & Whitney as the fifth original equipment manufacturer in Québec. This strengthens Montreal’s position as the world's third largest aerospace cluster, after Seattle and Toulouse, and represents an amazing opportunity for the Québec aerospace cluster and supply chain, which employ more than 40,000 people and generate $14.4 billion in sales annually.

#6

This partnership was very well received by investors and the financial community. By combining Bombardier’s state-of-the-art technology with Airbus’s global reach and scale, the C Series program will unleash its full potential.

#7

Lastly, Bombardier continues to make solid progress executing its five-year turnaround plan. This strategic partnership further de-risks the company and should help us grow our revenues and earnings in order to achieve our 2020 objectives.

This video, featuring tenured ESG-UQAM professor, Merhan Ebrahimi, provides a great explanation of the partnership (in French only) and why today is such a great day for Bombardier.

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FORWARD-LOOKING STATEMENTS

This post includes forward-looking statements, which may involve, but are not limited to: statements with respect to our objectives, guidance, targets, goals, priorities, market and strategies, financial position, beliefs, prospects, plans, expectations, anticipations, estimates and intentions; general economic and business outlook, prospects and trends of an industry; expected growth in demand for products and services; product development, including projected design, characteristics, capacity or performance; expected or scheduled entry-into-service of products and services, orders, deliveries, testing, lead times, certifications and project execution in general; competitive position; the expected impact of the legislative and regulatory environment and legal proceedings on our business and operations; available liquidities and ongoing review of strategic and financial alternatives the impact and expected benefits of the transaction with Airbus described herein, on our operations, infrastructure, capabilities, development, growth and other opportunities, geographic reach, scale, footprint, financial condition, access to capital and overall strategy; and the impact of such transaction on our balance sheet and liquidity position.

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By their nature, forward-looking statements require management to make assumptions and are subject to important known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecast results set forth in forward-looking statements. While management considers these assumptions to be reasonable and appropriate based on information currently available, there is risk that they may not be accurate. The assumptions underlying the forward-looking statements made in this post in relation to the transaction with Airbus discussed herein include the following material assumptions; the fulfillment and performance by each party of its obligations pursuant to the transaction agreement and future commercial agreements and absence of significant inefficiencies and other issues in connection therewith; the realization of the anticipated benefits and synergies of the transaction in the timeframe anticipated; our ability to continue with our current funding plan of CSALP and to fund, if required, any cash shortfalls; adequacy of cash planning and management and project funding; and the accuracy of our assessment of anticipated growth drivers and sector trends. For additional information with respect to the assumptions underlying the forward-looking statements made in this post, refer to the Strategic Priorities and Guidance and forward-looking statements sections in Overview, Business Aircraft, Commercial Aircraft, Aerostructures and Engineering Services and Transportation in the MD&A of our financial report for the fiscal year ended December 31, 2017.

With respect to the transaction with Airbus discussed herein specifically, certain factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, the failure by either party to satisfy and perform its obligations pursuant to the transaction agreement and future commercial agreements and/or significant inefficiencies and other issues arising in connection therewith; the impact of the announcement of the transaction on our relationships with third parties, including commercial counterparties, employees and competitors, strategic relationships, operating results and businesses generally; the failure to realize, in the timeframe anticipated or at all, the anticipated benefits and synergies of the transaction; our ability to continue with our current funding plan of CSALP and to fund, if required, the cash shortfalls; inadequacy of cash planning and management and project funding. Certain other factors that could cause actual results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, risks associated with general economic conditions, risks associated with our business environment (such as risks associated with “Brexit”, the financial condition of the airline industry, business aircraft customers, and the rail industry; trade policy (including potential changes to or the termination of the existing North American Free Trade Agreement between Canada, the U.S. and Mexico currently in discussion); increased competition; political instability and force majeure events or natural disasters), operational risks (such as risks related to developing new products and services; development of new business; the certification and homologation of products and services; fixed-price and fixed-term commitments and production and project execution; pressures on cash flows and capital expenditures based on project-cycle fluctuations and seasonality; our ability to successfully implement and execute our strategy and transformation plan; doing business with partners; product performance warranty and casualty claim losses; regulatory and legal proceedings; environmental, health and safety risks; dependence on certain customers and suppliers; human resources; reliance on information systems; reliance on and protection of intellectual property rights; and adequacy of insurance coverage), financing risks (such as risks related to liquidity and access to capital markets; retirement benefit plan risk; exposure to credit risk; substantial existing debt and interest payment requirements; certain restrictive debt covenants and minimum cash levels; financing support provided for the benefit of certain customers; and reliance on government support), market risks (such as risks related to foreign currency fluctuations; changing interest rates; decreases in residual values; increases in commodity prices; and inflation rate fluctuations). For more details, see the Risks and uncertainties section in Other in the MD&A of our financial report for the fiscal year ended December 31, 2017.

Readers are cautioned that the foregoing list of factors that may affect future growth, results and performance is not exhaustive and undue reliance should not be placed on forward-looking statements. Other risks and uncertainties not presently known to us or that we presently believe are not material could also cause actual results or events to differ materially from those expressed or implied in our forward-looking statements. In addition, there can be no assurance that the anticipated strategic benefits and operational, competitive and cost synergies of the transaction with Airbus will be realized in their entirety, in part or at all. The forward-looking statements set forth herein reflect management’s expectations as at the date of this report and are subject to change after such date. Unless otherwise required by applicable securities laws, we expressly disclaim any intention, and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this post are expressly qualified by this cautionary statement.