Canadian Manufacturing

Airbus wants to make C Series profitable by lowering supplier prices

Airbus executive Klaus Richter says his firm will focus on volume to successfully reduce supplier prices of Bombardier's C Series, which is currently not profitable. The European conglomerate is working to finalize its partnership with Bombardier and the Quebec government to produce the aircraft


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Under the terms of the deal announced last fall, Airbus will hold 50.01 per cent of the new C Series partnership. Bombardier will retain 31 per cent while the Quebec government will hold 19 per cent. PHOTO: Airbus Group

TOULOUSE, France—Airbus intends to pressure suppliers for Bombardier’s C Series jets to lower their prices in an effort to make its new partnership with the Quebec aircraft manufacturer profitable.

Airbus executive Klaus Richter made the comment today alongside Quebec Premier Philippe Couillard.

It came after Couillard, on an official trip to France, toured the facilities of the European aerospace giant in Toulouse.

Richter says Airbus took a gamble by taking over the C Series, which is currently not profitable.

He says Airbus will try to sell the planes first and then rework the costs with suppliers, because currently there is a gap between production cost and sale price.

Richter says the company intends to focus on volume to successfully reduce supplier prices and will hold its next major international gathering of suppliers in October in Montreal.

The European conglomerate is working to finalize its partnership with Bombardier and the Quebec government to produce the C Series aircraft.

Under the terms of the deal announced last fall, Airbus will hold 50.01 per cent of the new partnership.

Bombardier will retain 31 per cent while the Quebec government will hold 19 per cent.


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