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Airbus looking to lower supplier prices

The company gambled by taking over the C Series, which is currently not profitable


March 6, 2018
The Canadian Press
The Canadian Press

The C Series CS100. Image: Bombardier

TOULOUSE, France—Airbus intends to pressure suppliers for Bombardier’s C Series jets to lower their prices in an effort to make its new partnership with the Quebec aircraft manufacturer profitable.

Airbus executive Klaus Richter made the comment today alongside Quebec Premier Philippe Couillard.

It came after Couillard, on an official trip to France, toured the facilities of the European aerospace giant in Toulouse.

Richter says Airbus took a gamble by taking over the C Series, which is currently not profitable.

He says Airbus will try to sell the planes first and then rework the costs with suppliers, because currently there is a gap between production cost and sale price.

Richter says the company intends to focus on volume to successfully reduce supplier prices and will hold its next major international gathering of suppliers in October in Montreal.

The European conglomerate is working to finalize its partnership with Bombardier and the Quebec government to produce the C Series aircraft.

Under the terms of the deal announced last fall, Airbus will hold 50.01 per cent of the new partnership.

Bombardier will retain 31 percent while the Quebec government will hold 19 percent.