Bombardier sold its remaining stake of the C Series commercial jet program to pay off some of its billions of dollars of debt.
The struggling transportation company owes over US$9 billion and recently reported a $1.6 billion loss in the past year. This loss was cited as one of the reasons for the C Series selloff.
Airbus, which previously took over the project under its A220 line, will pay Bombardier $591 million for the deal.
In January, Bombardier’s stocks plummeted to a record low, losing one-third of its value in a single day to close at $1.22 per share. Bombardier shares saw a slight uptick in value after the C Series sell-off was announced, closing Thursday at $1.69 a share.
Despite expensive bailouts on the taxpayer’s dime, Bombardier has struggled to keep afloat.
In 2017, Justin Trudeau’s government gave the company a $372.5 million federal loan, while the Quebec government lavished Bombardier with another $1 billion in funding.
The same year, Bombardier announced it would lay off 5,000 people worldwide.
The company has also struggled to meet the demands of a contract with New York City’s transit authority.
NYC had to pull 300 subway cars manufactured by Bombardier because of malfunctioning equipment.
“Out of an abundance of caution, (New York City Transit) removed all R179 train cars from service overnight for thorough inspection and re-deployed other spare cars to continue service for this morning’s rush and ensure minimal impacts to customers,” said New York City Transit President Andy Byford.
“We intend to hold the company fully accountable.”
