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Old 9th Feb 2020, 01:46
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WillowRun 6-3
 
Join Date: Jul 2013
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Jobs in QC are "a" factor

Seattle Times article notes that acquisition by Airbus also granted AB "option" to buy out remaining ownership interests held, after the AB deal, by Bombardier and Quebec government. Without any access to the pertinent transaction documents - and while accepting as accurate the news reporting as far as it goes - what conditions for exercise of that option may exist at present, as opposed to what was projected for 2026 as referenced in the article, we can only guess.

Probably the CAQ party currently in charge of Quebec government would find nice advantage in giving a superior performance on the matter of retaining good, well-paying jobs in the province, as comparrd to Trudeau's party rather botching similar interests with engineering firm SNC-Lavalin. And quite plausibly there is a path forward that could work out well.

Instead of buying the interest AB didn't originally acquire, it should consider a modified consortium arrangement. The jet reportedly is a strong seller, correct? - and it is in the market ahead of other potential rivals. Don't shift production to Mobile - Quebec's aerospace heritage and its accomplished workforce not only match up well but surpass even strong resources in Mobile. Use an "earn-out" structure for taking a greater ownership interest now, and a reconfigured option later on. The more revenue and earnings, the more paid to Bombardier and QC for the fractional additional interest conveyed now, as well as under the later-deferred option.

It's innovative as a structure if you want to call it that, but it's really about dropping the pretense of resolving "who did what to whom" until now and instead getting on with, you know, the business of building airplanes.
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