Bombardier Inc. is seeking investors or buyers for parts of its aerospace business, people familiar with the matter said, as a turnaround plan at the Canadian planemaker faces pressure from potentially crippling U.S. tariffs on its marquee jetliner.
The Montreal-based manufacturer is studying the disposal of assets including its Q400 turboprop and CRJ regional-jet unit, said the people, who asked not to be identified because the discussions are private. Airbus SE is among the suitors, they said, with one person saying Bombardier is also open to partnerships with other aerospace companies.
Chief Executive Officer Alain Bellemare is trying to stop a cash drain after its C Series jetliner came to market more than two years behind schedule and about $2 billion over budget. Asset sales or investment deals in aerospace would raise money as Bombardier contends with newly imposed U.S. import duties of 300 percent on the plane. Bombardier also missed out on a merger of its rail-equipment business with Siemens AG’s operation after months of talks.
Deals on the Q400 or CRJ may add life to languishing products. The entire segment of regional aircraft, which seat between 50 and 90 people, garnered only 119 orders last year, down 50 percent.
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