Airbus and Bombardier Shake Up the Aerospace Market With CSeries Deal
Recently, the biggest storyline in the aviation world has been Boeing's (NYSE: BA) successful trade complaint against smaller Canadian rival Bombardier (NASDAQOTH: BDRBF). In the past month, the U.S. Department of Commerce has determined that Bombardier was "dumping" its CSeries jet in the U.S., and it proposed tariffs totaling 300% on CSeries planes. These tariffs would have effectively made it impossible to sell CSeries planes in the United States.
On Monday, Bombardier flipped the script by striking a deal in which Boeing archrival Airbus (NASDAQOTH: EADSY) will take a majority stake in the CSeries program. This deal ensures that the CSeries aircraft program will move forward, but its long-term impact will depend on Airbus' strategy for the CSeries platform.
Bombardier's CSeries family of small mainline jets offers wider seats than rival planes, lots of overhead bin space, extra-large windows, and other comfort-enhancing features. Meanwhile, the CSeries jets use much less fuel than older planes in that size class (e.g., the Boeing 717), as well as the smallest jets made by Boeing and Airbus today (the 737-700 and A319, respectively).
Source: Fool.com
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