By Allison Lampert
MONTREAL (Reuters) - Airbus SE (PA:AIR) and Bombardier (TO:BBDb) aim to close a deal giving the European planemaker a majority stake in the Canadian company's CSeries jetliner programme by the end of May, ahead of an initial timetable, two people familiar with the matter told Reuters this week.
An early closure of the deal would accelerate orders and efforts to reduce costs, the people added. A third source said the finalization is now "very close." The deal was originally expected to close in late 2018, and then mid-year, pending regulatory approval.
The companies have almost completed the process of seeking clearances which must span multiple jurisdictions, the persons added.
All of the sources spoke on condition of anonymity because the talks are private.
An Airbus spokesman cited comments by Chief Executive Tom Enders who said this month the deal would close by mid-year.
Bombardier could not immediately be reached for comment.
In October last year, Airbus agreed to buy a majority stake in Bombardier's CSeries jetliner programme, grabbing control of a struggling competitor.
Completion of the venture could kick-start orders from airlines sitting on the sidelines at a time of industry consolidation, the people added.
Bombardier said in February there had been a “bit of a pause” in orders for its narrowbody jets as airlines waited for the company to complete the partnership deal. Separate talks aimed at a tie-up between planemakers Boeing Co (N:BA) and Embraer SA (SA:EMBR3) are also said to be advancing.
U.S. carrier JetBlue Airways Corp (O:JBLU) has said these developments prompted it to put off a decision whether to replace its fleet of about 60, 100-seater E-190 jets, in a campaign that pits the CSeries against its Brazilian rival’s latest model, the E190-E2.
"The timing of the review moved a little based on what was happening out in the market with the OEMs," said JetBlue CFO Steve Priest in an April interview.
"Obviously Airbus announced that they were taking a stake in the CSeries programme from Bombardier, and there’s been some noise in the market around some sort of Boeing and Embraer (agreement). So we’ve been taking that into consideration as we’re going forward."