(Bloomberg) -- Airbus SE and the government of Quebec agreed on a $1.2 billion investment that allows the Canadian province to remain an owner of the A220 jet program for four additional years.
The French plane maker committed to investing $900 million in the loss-making program while Quebec will put up $300 million, according to a statement on Friday.
Under the deal, the two sides can delay the date by which Airbus will buy Quebec's 25% stake to 2030, the statement said. Previously the buyout was supposed to happen by 2026.
The A220 aircraft, originally known as the C Series, won praise for its fuel-efficient engines, composite wings and an airy cabin featuring large windows. But the program ran more than two years late and billions over budget, and developer Bombardier Inc. had trouble attracting buyers in an industry dominated for decades by Airbus and Boeing.
In 2018, Airbus stepped in and acquired a 50.1% stake in the A220 program and lifted its stake to 75% two years later, while Bombardier transferred the remaining 25% to the provincial government.
Airbus Lifts A220 Jetliner Stake to 75% as Bombardier Exits
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