Bombardier pursues options for aerospace division

Canada's Bombardier is continuing to look at strategic options for its aerospace division but no deal is imminent, people familiar with the matter said on Monday.

As part of that process, the Canadian train-and-plane maker has held informal talks with Chinese companies among others, but the sources played down the chances of Europe's Airbus being a likely partner.

Bombardier, which employs more than 4,000 workers in Belfast, has been hit by a proposed 80 per cent levy on exports following complaints by Boeing that the Canadian-owned company had dumped its C Series jets at "absurdly low" prices.

On Sunday, Bloomberg reported that Bombardier was considering disposal of aerospace assets including its Q400 turboprop and CRJ regional-jet unit, while looking at partnerships with other aerospace companies, with Airbus among the prospective buyers.

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Bombardier’s talks with Chinese companies is aimed delivering an investment in the company’s 110 to 130 seat CSeries jets and improving the aircraft’s sales through better access to the fast-growing Chinese aviation market, two sources familiar with the matter said earlier this autumn.

But those talks have been complicated, among other reasons, by the agendas of various stakeholders, including the Quebec provincial government, which owns a 49 percent stake in the plane programme.

Bombardier shares were up 1.7 per cent at C$2.37 in early morning trades, while the benchmark Toronto share are index was up 0.4 per cent.

Bombardier’s aerospace division has been under pressure because of lackluster demand for its turboprops and regional jets, and more recently because of a trade dispute with US planemaker Boeing Co over the CSeries.

Bombardier was not immediately available for comment on Monday, and had declined to comment on Sunday. Airbus declined to comment.

- Reuters