I don't get it. Why should Airbus, Boeing or Embraer step in as the wight knight?
To make money, obviously, while at the same time neutralizing a competitor.
Thinking out loud:
If Airbus can take a majority stake in a CSeries joint-venture for say $2 billion, that could be a steal, for a program that's close to certification and has most of the risks already solved. They get the potential upside without any the downside.
With time Airbus can also negotiate more forcefully with the CSeries supply chain, and leverage their vast sales and service networks to ensure the program's success. They could also demand more efficiency from internal Bombardier manufacturing.
And with Airbus backing, airlines which today may lack confidence in Bombardier can be secure in placing orders.
Airbus can also offer the CSeries as a sweetener to their customers, to package alongside the regular lineup, complementing or outright replacing the tepid A319neo.
Strategically, they can also ensure that there's no CS500 to compete with the A320 in the future.
Lots of questions though:
- How big is the actual market for 110-160 seat jet aircraft? Hundreds? Thousands?
- How will the deal be financed?
- What would be Airbus's ROI on the money they put into the joint venture?
- Will the Quebec government agree to consolidation of plants, etc., for efficiency?
- What's the best strategy vs. the A319neo?
- Will having the CSeries really help sell more A320s and above?
- How problematic is the lack of common cockpit, spares, etc., on the service network?