• Airbus to acquire majority stake in the C Series Aircraft Limited Partnership
• Partnership brings together two complementary product lines, with 100-150 seat market segment expected to represent more than 6,000 new aircraft over the next 20 years
• Combination of Airbus’ global reach and scale with Bombardier’s newest aircraft family to create significant value for customers, suppliers, employees and shareholders
• Significant C Series production costs savings anticipated by leveraging Airbus’ supply chain expertise
• Commitment to Québec: C Series Aircraft Limited Partnership headquarters and primary assembly to remain in Québec, with the support of both companies’ global supply chains
• Airbus’ global industrial footprint expands with the C Series Final Assembly Line in Canada, resulting in a positive impact on operations in Québec and across the country
• Growing market for C Series results in second Final Assembly Line in Mobile, Alabama, serving U.S. customers

Amsterdam and Montreal | October 16, 2017– Airbus SE (EPA: AIR) and Bombardier Inc. (TSX: BBD.B) are to become partners on the C Series aircraft programme. A corresponding agreement was signed today.  The agreement brings together Airbus’ global reach and scale with Bombardier’s newest, state-of-the-art jet aircraft family, positioning both partners to fully unlock the value of the C Series platform and create significant new value for customers, suppliers, employees and shareholders.

Under the agreement, Airbus will provide procurement, sales and marketing, and customer support expertise to the C Series Aircraft Limited Partnership (CSALP), the entity that manufactures and sells the C Series. At closing, Airbus will acquire a 50.01% interest in CSALP. Bombardier and Investissement Québec (IQ) will own approximately 31% and 19% respectively.

CSALP’s headquarters and primary assembly line and related functions will remain in Québec, with the support of Airbus’ global reach and scale. Airbus’ global industrial footprint will expand with the Final Assembly Line in Canada and additional C Series production at Airbus’ manufacturing site in Alabama, U.S. This strengthening of the programme and global cooperation will have positive effects on Québec and Canadian aerospace operations.

The single aisle market is a key growth driver, representing 70% of the expected global future demand for aircraft. Ranging from 100 to 150 seats, the C Series is highly complementary to Airbus’ existing single aisle aircraft portfolio, which focuses on the higher end of the single-aisle business (150-240 seats). The world class sales, marketing and support networks that Airbus brings into the venture are expected to strengthen and accelerate the C Series’ commercial momentum.  Additionally, Airbus’ supply chain expertise is expected to generate significant C Series production cost savings.

Airbus is strongly committed to Canada and its aerospace sector with Canadian suppliers extending their access to Airbus’ global supply chain. This new C Series partnership is set to secure jobs in Canada for many years to come.

“This is a win-win for everybody! The C Series, with its state-of-the-art design and great economics, is a great fit with our existing single-aisle aircraft family and rapidly extends our product offering into a fast growing market sector. I have no doubt that our partnership with Bombardier will boost sales and the value of this programme tremendously,” said Airbus Chief Executive Officer Tom Enders. “Not only will this partnership secure the C Series and its industrial operations in Canada, the U.K. and China, but we also bring new jobs to the U.S. Airbus will benefit from strengthening its product portfolio in the high-volume single-aisle market, offering superior value to our airline customers worldwide.”

“We are very pleased to welcome Airbus to the C Series programme,” said Alain Bellemare, President and Chief Executive Officer of Bombardier Inc.  “Airbus is the perfect partner for us, Québec and Canada. Their global scale, strong customer relationships and operational expertise are key ingredients for unleashing the full value of the C Series. This partnership should more than double the value of the C Series programme and ensures our remarkable game-changing aircraft realizes its full potential.”

“The arrival of Airbus as a strategic partner today will ensure the sustainability and growth of the C Series programme, as well as consolidating the entire Québec aerospace cluster. In the current context, the partnership with Airbus is, for us, the best solution to ensure the maintenance and creation of jobs in this strategic sector of the Québec economy,” said Québec’s Deputy Prime Minister, Minister of Economy, Science and Innovation and Minister responsible for Digital Strategy, Dominique Anglade.

Ownership Structure and Agreement Highlights

The C Series programme is operated by CSALP in respect of which Bombardier and IQ respectively hold approximately a 62% and a 38% interest.  The Investment Agreement contemplates Airbus acquiring a 50.01% interest in CSALP. Airbus will enter into commercial agreements relating to (i) sales and marketing support services for the C Series, (ii) management of procurement, which will include leading negotiations to improve CSALP level supplier agreements, and (iii) customer support. At closing, there will be no cash contribution by any of the partners, nor will CSALP assume any financial debt. It also contemplates that Bombardier will continue with its current funding plan of CSALP and will fund, if required, the cash shortfalls of CSALP during the first year following the closing up to a maximum amount of US$350 million, and during the second and third years following the closing up to a maximum aggregate amount of US$350 million over both years, in consideration for non-voting participating shares of CSALP with cumulative annual dividends of 2%, with any excess shortfall during such periods to be shared proportionately amongst Class A shareholders.

Airbus will benefit from call rights in respect of all of Bombardier’s interest in CSALP at fair market value, with the amount for non-voting participating shares used by Bombardier capped at the invested amount plus accrued but unpaid dividends, including a call right exercisable no earlier than 7.5 years following the closing, except in the event of certain changes in the control of Bombardier, in which case the right is accelerated. Bombardier will benefit from a corresponding put right whereby it could require that Airbus acquire its interest at fair market value after the expiry of the same period. IQ’s interest is redeemable at fair market value by CSALP, under certain conditions, starting in 2023. IQ will also benefit from tag along rights in connection with a sale by Bombardier of its interest in the partnership.

The Board of Directors of CSALP will initially consist of seven directors, four of whom will be proposed by Airbus, two of whom will be proposed by Bombardier, and one of whom will be proposed by IQ.  Airbus will be entitled to name the Chairman of CSALP.

Subject to obtaining the required approval from the Toronto Stock Exchange, the transaction also provides for the issuance to Airbus, upon closing, of warrants exercisable to acquire up to 100,000,000 Class B Shares (subordinate voting) of Bombardier (representing approximately 5% of the aggregate issued and outstanding Class A Shares (multiple voting) and Class B Shares of Bombardier on a fully-diluted basis, and approximately 5% of the aggregate issued and outstanding Class A Shares and Class B Shares on a non-diluted basis), at an exercise price per share equal to the US$ equivalent of C$2.29, which represents the volume-weighted average price of the Class B Shares over the five trading days ending Friday, 13 October 2017. The warrants will have a five-year term from the date of issue, will not be listed and will provide for market standard adjustment provisions, including in the event of corporate changes, stock splits, non-cash dividends, distributions of rights, options or warrants to all or substantially all shareholders or consolidations.

The issuance of the warrants and their terms were negotiated between Bombardier and Airbus at arm’s length and will not materially affect control of Bombardier. Security holder approval will be required under Toronto Stock Exchange rules due to the fact that the warrants will be issued later than 45 days from the date upon which the exercise price was established. Such approval is expected to be obtained by way of written consent of shareholders holding more than 50% of the voting rights attached to all of Bombardier’s issued and outstanding shares.

The transaction has been approved by the Boards of Directors of both Airbus and Bombardier, as well as the Cabinet of the Government of Québec. The transaction remains subject to regulatory approvals, as well as other conditions usual in this type of transaction. There are no guarantees that the transaction will be completed and that the conditions to which it is subject would be met. Completion of the transaction is currently expected for the second half of 2018.

• The SmartSky 4G network delivers full-throttle, unrestricted access to the Web
• Bombardier to offer SmartSky 4G service on Bombardier Learjet, Challenger and Global business aircraft

Montreal, Quebec | March 15, 2016– Bombardier Business Aircraft is pleased to announce that its Service Centre Network team will provide hardware sales and installations for SmartSky 4G, a new network taking flight later this year. SmartSky’s patented 4G beamforming technology delivers a signal that locks onto an aircraft, and by using 60 MHz of spectrum on an air-to-ground (ATG) platform, provides full-throttle, unrestricted access to the web. Passengers can do it all: stream, chat, text, call, game and videoconference.

Bombardier will offer SmartSky 4G on in-service Bombardier Learjet, Challenger and Global business aircraft over the continental U.S., and it will complement Bombardier WAVE, which enables Internet connectivity on Global aircraft with seamless coverage across the globe through a dedicated satellite network.

“This is the airborne network experience our customers have been waiting for,” says Chris Milligan, Vice President, Services Sales and Authorized Service Facilities, Bombardier Business Aircraft. “As part of Bombardier Business Aircraft’s commitment to offer our customers one-stop-shopping, we’re excited to provide this level of connectivity, supporting all inflight communication and entertainment needs.”

“We take great pride in welcoming Bombardier, a proven industry leader, to our team and to the in-flight connectivity revolution our 4G network represents,” says SmartSky Networks President, Ryan Stone. “SmartSky 4G is the only inflight network capable of offering services in which bi-directional high bandwidth and low latency are essential. That includes two-way streaming video or support of new advanced applications optimized to take advantage of ultrafast connectivity.”

Satcom Direct serves as SmartSky’s exclusive customer service and support provider. SmartSky’s introductory, time-sensitive Early Bird program provides a further incentive for people to get on board early. Customers interested in the Early Bird program can learn more at smartskynetworks.com/bombardierearlybird/.

Bombardier Business Aircraft’s maintenance network is comprised of seven wholly-owned Service Centres including Dallas, Hartford, Fort Lauderdale, Tucson and Wichita in the United States, Amsterdam, Netherlands and Singapore, as well as a line maintenance station in Nice, France and a total of 15 Customer Response Team mobile units worldwide.

St. Louis, MO | January 5, 2016– Flying Colours Corp., the North American MRO, completions, and refurbishment company has successfully secured a Supplemental Type Certificate for ADS-B OUT for Bombardier Challenger 300 airframes, from the US-based FAA. The first Bombardier Challenger 300 was out fitted with the soon-to-be mandatory tracking system in November 2015, at its St. Louis facility. The STC will be submitted for validation by both Transport Canada and Europe’s EASA this year.

The STC follows on from Flying Colours Corp. achieving an STC for Bombardier Challenger 604/605 aircraft types in October 2015, and expands the range of services it can offer to aircraft owners and operators. The awarding of the STC follows significant training and technology investment from Flying Colours Corp. over the last twelve months.

Flying Colours Corp. is already receiving significant interest in the service following its promotion and activity at 2015’s NBAA where Bombardier Business Aircraft also named the St. Louis facility as winner of its annual Authorized Service Facility Excellence Award in the North American category.

Sean Gillespie, VP Flying Colours Corp. states, “Following the addition of the Global family to our Bombardier ASF status which has just been renewed for five years, and the winning of the Excellence award, it’s a real bonus to also achieve this STC. We’ve invested in the technology to achieve the ADS-B OUT for the Challenger family first and now we are now exploring the options for other OEMs.” The new Challenger 300 STC will be available for installation at all Flying Colours Corp. facilities.

Automatic Dependent Surveillance – OUT (ADS-B OUT) enables aircraft to report highly accurate position and status information to air traffic control, replacing the need for traditional radar. With EASA mandating that by 7 December 2017, all aircraft with a maximum certified take off weight exceeding 5,700kg, or having a maximum cruise airspeed capability greater than 250 kts, must be ADS-B OUT (DO-260B) compliant Flying Colours Corp. anticipates that its growing collection of STCs will attract new customers, as well as continuing to support its existing client base.

March 26, 2013– Flying Colours Corp., the completions, refurbishment and maintenance specialist, announced today that Bombardier has awarded the Canadian-based aviation business an exclusive contract to undertake the interior modification of seven CRJ700* NextGen* aircraft. The fleet will be completed over a two year period and delivered to an undisclosed Chinese client.

The aircraft will be completed for specific mission purposes with a particular emphasis on VIP modifications. The project will require new supplemental type certificates (STCs) to be sourced by Flying Colours Corp., and final certification will be completed in conjunction with the Chinese Civil Aviation Authority, with whom Flying Colours already has a strong relationship.

The first aircraft is scheduled to arrive at the Flying Colours Corp. Peterborough, ON facility in the fourth quarter of this year, and it is anticipated that the final aircraft will be delivered in the first quarter of 2015. The modification of a CRJ700 NextGen aircraft will be a first for Flying Colours Corp. and builds on the extensive experience of its ExecLiner programme which has seen more than 12 CRJ200* regional airliners converted to executive VIP configurations.

Flying Colours Corp. is already a Preferred Completion Centre for Challenger* aircraft and 2013 will see five green Challenger 850* jets undergo completion work at its Canadian facility. This latest deal sees a strengthening of the relationship between the two Canadian based businesses as Flying Colours Corp. broadens the number of Bombardier aircraft divisions it works with. “We are extremely proud that Bombardier has selected Flying Colours Corp. to take on this modification and completion programme and look forward to beginning work on the first aircraft later this year. We already have a strong relationship with the company and this new deal extends the scope of our business relationship with them,” said Sean Gillespie, Executive Vice President of Flying Colours Corp.

LAKE FOREST, California – June 18, 2009 – Panasonic Avionics Corporation (Panasonic), the world leader in state-of-the-art in-flight entertainment and communication (IFEC) systems, today announced their selection by Bombardier to provide Cabin Management and Passenger Address System (CMS) for the Bombardier CSeries aircraft.

Panasonic’s CMS on the CSeries aircraft will allow control, monitoring and diagnostics of numerous aircraft cabin functions, including temperature and lighting. The CMS also provides a complete embedded digital audio solution offering passenger address, interphone and pre-recorded announcements and music (PRAM) capabilities to the CSeries aircraft passengers, cabin and flight crew. Panasonic is committed to enhancing the entire passenger experience, including CMS, in-flight entertainment and communications systems.

“Panasonic’s CMS is one of many features that allow the CSeries aircraft to deliver a preferred passenger experience at one of the lowest operating costs in its class,” said Rob Dewar, Vice President, CSeries Integrated Product Development Team, Bombardier Commercial Aircraft. “Together with Panasonic, we are introducing features that make flying more enjoyable for passengers and create real value for our customers.”

“We are pleased that Bombardier selected Panasonic to provide the CMS for its CSeries aircraft,” said Paul Margis, Chief Executive Officer at Panasonic Avionics Corporation. “We look forward to using the latest technology to deliver a cost-effective and lower weight solution that enhances the passenger experience on this new aircraft.”