A potential Airbus-Bombardier tie-up is off

The Montreal-based company, which has so far received a total of 243 firm orders for the jet, was unable to win a single order at the Paris airshow in June and is still short of its target of 300 firm orders by the time the aircraft enters service, set for 2016.

“Look at the ownership of Quebec crown jewels that are listed on the stock exchange”, he said, according to a Reuters report. “You are going to realize that they are not majority-held by Quebecers”.

“The CSeries sales issue remains a serious risky unknown”. Airbus and Bombardier said the talks had now ended without agreement. The jet, which can seat as many as 160, is two years late to market and over budget, with development costs estimated at $6-billion (U.S.), including government and supplier funding.

Several things make such a partnership complicated, including the fact Bombardier’s founding family controls the plane and train maker through a special class of stock.

Bombardier’s officials would like to be able to outline a plan when they report third-quarter earnings later this month.

The cautious approach would seem warranted, as potential customers exhibit what Bombardier Commercial Aircraft president Fred Cromer called a “wait-and-see attitude” until certification authorities issue their approvals.

A source described the discussions are exploratory. The deal would involve a minimal amount of cash up front, they said.

Any deal involving the sale of aerospace technology to Chinese buyers would likely trigger a federal government review.

“Studies are being done and options are being evaluated and campaigns are being worked on and I’m trying to help the company the best I can to be successful in all these options”, said Courpron, former CEO of Airbus North America and chairman of consultancy Plane View Partners.

The CSeries has loaded Bombardier down with debt, spurring the company to consider asset sales or other measures to raise cash.

Bombardier is Canada’s worst-performing industrial company this year, slumping 57 per cent through Tuesday.