The Canadian Press
Members of the media record images of a new Airbus A220 as it sits on the tarmac at Toulouse-Blagnac airport, southwestern France, Tuesday, July 10, 2018. (AP Photo/Frederic Scheiber)
MONTREAL -- Bombardier Inc. is completing its exit from commercial aviation as the plane-and-train maker sells its remaining stake in the A220 jetliner for nearly $600 million.
Bombardier says it has entered into an agreement with Airbus SE and the Quebec government in which the company has transferred its shares to Airbus and the province, its latest move to emerge from more than $9 billion in debt.
The deal increases Airbus's share in the A220 program to 75 per cent from just over 50 per cent, while Quebec's stake rises to 25 percent from 16 per cent.
In exchange, the agreement hands Bombardier US$591 million, including US$531 million immediately.
The company says work packages for the A220 and A330 single-aisle planes will be transferred to Airbus through the Europe-based aircraft giant's subsidiary Stelia Aerospace, securing 360 jobs in Quebec.
The news comes as Bombardier reported a loss of US$1.61 billion for 2019 as rumours continue to swirl around the potential sale of one of its two main divisions later this year.