Airbus-Bombardier C-Series deal to close on July 1

Bombardier says a partnership that will see Airbus acquire a majority 50.01 per cent stake in the C Series commercial jet program has met all regulatory requirements and will take effect on July 1.

The deal, which will see Bombardier and the Quebec government own the rest, was initially announced in October 2017.

Both companies said in a statement early Friday that the partnership head office and main assembly line will be located in Mirabel, Que., and that a second line will be based in Mobile, Alabama to service the U.S. market.

Under terms of the deal, Bombardier will fund any cash shortfalls during the second half of 2018 to a maximum of US$225 million, then up to a maximum of US$350 million in 2019 and to a maximum of US$350 million over the following two years.

Any excess shortfall during these periods will be borne by the partnership's class A shareholders. The companies said further financial information on the transaction will be provided later this year.

Bombardier also said it expects to double its C Series deliveries this year from the 17 aircraft in 2017 and is positioned to capture a large chunk of the estimated 6,000 aircraft needed in this market segment over the next 20 years.