Airbus and Quebec to Invest $1.2 Billion in A220 Joint Venture

In a significant boost to the aerospace industry, Airbus and the provincial government of Quebec announced plans to invest up to $1.2 billion in their joint venture, Airbus Canada. This move aims to support the expansion of the A220 aircraft program and extend their partnership until 2035.

Airbus will contribute up to $900 million, reflecting its 75% stake in the venture, while the Quebec government will invest up to $300 million, proportional to its 25% stake. The funding will be used to ramp up production of the A220 aircraft at Airbus' Mirabel facility in Quebec. The company aims to increase output to 14 jets per month by 2026, combining production from Mirabel and its other A220 assembly line in Mobile, Alabama. Currently, Airbus produces the A220 at a rate of six jets per month across both sites.

The investment will also finance the construction of a new delivery center, expected to be completed by the end of the year, and further improvements to the A220 platform to maintain its 55% market share in the 100-to-150 seat aircraft category.

The A220 family, which includes the A220-100 and A220-300 models, is powered by Pratt & Whitney's PW1500G geared turbofan (GTF) engine. This engine has recently come under scrutiny for not meeting Airbus' time-on-wing expectations. Additionally, Airbus faces regulatory probes concerning the titanium used in the A220 program and Canadian sanctions on its main supplier of the metal, valued for its strength-to-weight ratio.

This strategic investment underscores Airbus' commitment to enhancing its A220 program and strengthening its position in the competitive aerospace market.