Bombardier Back to Brink After Rethinking Airbus A220 Deal

Shares decline most on record as company’s outlook darkens
Rail division’s stumbles continue from London to Switzerland

Bombardier CEO Alain Bellemare speaks during the unveiling of Air Canada's first Airbus SE A220-300 in Montreal on Jan. 15, 2020.
Photographer: Christinne Muschi/Bloomberg

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By Paula Sambo, David Scanlan, and Siddharth Philip

January 16, 2020 at 7:03 PM UTC

Updated on

January 16, 2020 at 10:23 PM UTC

This article is for subscribers only.

Bombardier Inc.’s deal with Airbus SE to rescue its long-delayed and over-budget jetliner program was supposed to be a lifeline for the struggling manufacturer. Now the Canadian company is rethinking the joint venture, pushing the iconic train and plane maker to the brink once more.

The shares posted their biggest loss ever -- Bombardier is almost a penny stock again -- and bonds tumbled after the company said it was reassessing the A220 jet program with Airbus. Costs for the new plane are rising, and the goal of breaking even may come later than expected, likely prompting a writedown when Bombardier reports earnings next month.