… Lufthansa says CSeries’ future more sustainable after Airbus deal,\u00a0 expects to benefit from it<\/strong><\/span><\/p>\n …\u00a0Air Baltic says hopes Bombardier-Airbus deal does not affect pricing<\/strong><\/span><\/p>\n … French Government, UK Business Minister welcome deal<\/strong><\/span><\/p>\n … Boeing says Bombardier CSeries jets may face hefty duties despite Airbus deal<\/strong><\/span><\/p>\n … Meanwhile,\u00a0Airbus shares rally after company’s Bombardier CSeries deal<\/strong><\/span><\/p>\n PARIS (Reuters) –<\/strong> Airbus shares rose on Tuesday after the European planemaker and aerospace group agreed to buy a majority stake in Bombardier\u2019s CSeries jetliner program.<\/p>\n Airbus shares were up 2.4 percent at 78.92 euros in early trading, close to a record high of 82.25 euros reached earlier this month.<\/p>\n The shares, up by around 25 percent this year, led gainers on France\u2019s benchmark CAC-40 index which was up 0.2 percent.<\/p>\n Meanwhile….<\/strong><\/span><\/p>\n In Atlanta, Delta Air Lines said on Tuesday it was unclear when the Bombardier CSeries jets would be delivered, as a proposed U.S. government tariff on the planes complicates the future of the Canadian-made aircraft.<\/p>\n Speaking to reporters in Atlanta, Chief Operating Officer Gil West said the delivery schedule of the plane was still \u201csomething of a question mark.\u201d<\/p>\n On Monday, Airbus SE agreed to take a majority stake in CSeries jetliner<\/p>\n FRANKFURT –<\/strong> The future of Bombardier\u2019s CSeries program is more secure after Airbus took a majority stake, customer Lufthansa said on Tuesday.<\/p>\n \u201cIt\u2019s a great aircraft, a great program and it deserves a sustainable future. After last night\u2019s decision, that future is much more sustainable and that\u2019s good for aviation, the environment, surely good for Bombardier and Airbus and the Lufthansa Group,\u201d Lufthansa Chief Executive Carsten Spohr said on Tuesday at an event hosted by aviation group A4E.<\/p>\n Lufthansa will benefit from future cooperation between airplane makers Airbus and Bombardier as it is a major customer of both companies, the German airline\u2019s chief executive Carsten Spohr said.<\/p>\n Airbus has agreed to buy a majority stake in Bombardier\u2019s CSeries jetliner program, giving a powerful boost to the Canadian plane and train maker in its costly trade dispute with Boeing Co.<\/p>\n \u201cThe cooperation of strong partners and the joint development of technology are of enormous importance in the aircraft sector,\u201d Spohr said on the sidelines of an Airlines4Europe event in Brussels.<\/p>\n \u201cAs a major customer of Airbus and launch customer and operator of the Bombardier CSeries, Lufthansa will benefit from the future cooperation of two companies that are bundling their innovation and competence,\u201d he said.<\/p>\n Lufthansa unit Swiss was the launch operator of the CSeries and has 30 of the planes on order, including 20 of the larger variant, the CS300.<\/p>\n AIR BALTIC<\/strong> – Latvian-based Air Baltic says a deal by Airbus to invest in Bombardier is positive news for it as a customer of the Canadian company\u2019s CSeries jet but hopes it won\u2019t affect the pricing of a planned new order.<\/p>\n Air Baltic is currently flying the larger variant of the CSeries, the CS300, having ordered 20 of them.<\/p>\n \u201cWe took the decision in 2012 not to take the (Airbus) A319, but to go for the CS300 and now Airbus confirmed that it was the right decision,\u201d CEO Martin Gauss told Reuters on the sidelines of an A4E event in Brussels.<\/p>\n \u201cIt means we have a stronger partner in the back now, so for us, it\u2019s very positive.\u201d<\/p>\n Air Baltic is also in talks for a further 14 CS300 jets plus options to replace its turboprop planes, and Gauss said he hoped the Airbus deal would not alter the purchase price, with talks already at an advanced stage.<\/p>\n \u201cOur potential order is there and I hope we don\u2019t have to completely change the evaluation of whether it is a good step because we are replacing our turboprops with it. I hope they respect what we have done so far,\u201d Gauss said.<\/p>\n Midnight in Toulouse: How CSeries deal shook status quo<\/strong><\/span><\/p>\n Two years ago, Airbus Chief Executive Tom Enders halted negotiations to buy Canada\u2019s CSeries program at midnight after the talks with Bombardier leaked to Reuters. On Tuesday, he performed a U-turn by backing a similar deal after all – again at dead of night.<\/p>\n The nocturnal gymnastics by Europe\u2019s largest aerospace group stunned the aircraft industry which had been riveted for weeks by a trade dispute between Boeing and Bombardier that threatened to hit the CSeries with large U.S. import fees.<\/p>\n Now, the 110-130-seat jet will be built for U.S. airlines at Airbus\u2019s Alabama assembly plant, circumventing any import penalties in a move that apparently caught Boeing off guard.<\/p>\n Analysts say that potentially turns the CSeries from an attack on U.S. jobs, as portrayed in Boeing\u2019s complaint, to a job creator in a key Republican state, though Boeing termed the move a \u201cquestionable deal\u201d between two of its subsidized competitors.<\/p>\n The deal also signals the end of Airbus efforts to promote the A319, its smallest jet which has not posted a sale in years.<\/p>\n \u201cThe stunning Airbus-Bombardier partnership for the CSeries program guarantees the future of the new airplane, kills off the A319 and thrusts a big stick up Boeing\u2019s tailpipe,\u201d Leeham Co analyst Scott Hamilton wrote.<\/p>\n Strategically, however, the move extends well beyond the noise of Boeing\u2019s spat with Bombardier and could trigger a riposte from other planemakers, including Boeing itself.<\/p>\n Commercial aerospace has four main powers dominated by Airbus and Boeing, which share the market above 150 seats.<\/p>\n Brazil\u2019s Embraer and Canada\u2019s Bombardier compete between 100 and 150 seats as well as in the market for smaller regional jets.<\/p>\n But China and Russia lead a field of new entrants vying to break into the $125 billion a year commercial market, along with smaller regional players such as Japan.<\/p>\n Tuesday\u2019s deal starts to rearrange the deck in a move that many have been expecting since former Airbus head Louis Gallois warned six years ago that the market was getting too crowded.<\/p>\n In particular, it could drive Boeing closer to Embraer, with which it already cooperates. Embraer\u2019s E2 jet is one of the main potential losers from the CSeries deal.<\/p>\n \u201cThe world has two top-tier airframers, and two second-tier airframers,\u201d said Teal Group analyst Richard Aboulafia.<\/p>\n \u201cAirbus and Bombardier are now allies. This greatly increases the likelihood of a stronger Boeing-Embraer alliance as a response.\u201d<\/p>\n Such a move has long been contemplated in private.<\/p>\n The CSeries benefits from a new type of efficient engine. Its launch in 2008 eventually prompted Airbus to put the same generation of engine on its own A320 to protect its main profit source.<\/p>\n That, in turn, forced Boeing to dump plans for an all-new single-aisle plane in 2011 and opt for a makeover of its best-selling 737 with similar engines, to be known as 737 MAX.<\/p>\n But sitting in Boeing\u2019s filing cabinets are designs for an all-new jet that would have involved intense collaboration with Embraer, according to two people familiar with the project. A template for closer co-operation therefore already exists.<\/p>\n Boeing and Embraer declined to comment.<\/p>\n The two companies already work on projects including runway safety and alternative jet fuels. Their partnership has intensified in recent years to include Boeing\u2019s commitment to joint sales and support of Embraer\u2019s KC-390 military aircraft.<\/p>\n The Airbus-Bombardier deal also marks a pause in strategic advances made by China, widely seen as the most serious future competitor to Airbus and Boeing.<\/p>\n Debt-laden Bombardier had been in talks with China as it waited for Airbus to come around to the CSeries.<\/p>\n \u201cChina has missed out on a huge opportunity to advance its aims by not getting the CSeries,\u201d an industry strategist said.<\/p>\n![\"\"](\"http:\/\/moovafrica.com\/news\/wp-content\/uploads\/2017\/10\/Airbus-1.jpg\")
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BOEING-EMBRAER ALLIANCE?<\/h3>\n
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PRODUCT STRATEGY<\/h3>\n