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Today's Headlines
Bombardier, Embraer Deny Airbus Deal
 
  June 12, 2007 -- Bombardier Inc. and Embraer SA have both dismissed reports they might individually be contemplating joining European giant Airbus SAS in a partnership to make commercial jets in the 100-to-120-seat range. “That's just speculation,” Bombardier Aerospace spokesman Marc Duchesne said yesterday of a report in the Financial Times Deutschland that Airbus – a subsidiary of European Aeronautic Defence and Space Co. (EADS) – is mulling a partnership with an existing or new manufacturer to develop a jet.

The article quoted Airbus and EADS chief Louis Gallois as saying that provisional agreements for a partnership or partnerships could be signed by July. It also referred to unsourced reports that Montreal-based Bombardier and Embraer, as well as unnamed Chinese or Russian manufacturers, are “potential contenders” as partners. A spokesman for Bombardier's Brazilian rival, Embraer, also said there is no substance to the report. “I have not heard about this,” said Pedro Ferraz, pointing out that this is not the first time rumours have surfaced about Airbus – or its U.S. rival Boeing Co. – preparing to move into the smaller-jet space. There has also been speculation over the years that Bombardier would seek a partnership with Airbus or Boeing to make a new long-range jet.

Bombardier – known primarily for its 50-to-90-seat regional jets – continues to study the possibility of launching a 110-to-130-seat aircraft, the C Series, but has yet to commit to such a project as it seeks out potential customers and risk-sharing manufacturing partners. Embraer already has a brand-new jet in the 110-seat category. Bombardier recently announced a 98-seat stretched version of its 86-seat CRJ900 regional jet.

Mr. Duchesne also played down media reports that Bombardier is among companies that might be interested in buying or taking a stake in Airbus's components facility near Bristol in Britain. “We have what we need in terms of manufacturing facilities. We're not looking for new ones,” he said. There were reports over the weekend that Bombardier, Saab-Scania AB of Sweden, Italy's Finmeccanica, Spirit AeroSystems Holdings Inc. of the U.S., in which Toronto-based Onex Corp. holds a stake, and other companies are thought to have expressed an interest in the Bristol plant. Airbus officials were not available for comment.

Source: The Globe and Mail
Source: Factiva

 
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