The Quebec government and Airbus yesterday announced that they are jointly investing US$1.2 billion in Airbus Canada. This move seeks to increase the production rate of the A220 in Mirabel, Quebec.

Local presence

Mirabel, an off-island suburb of Montreal hosts the A220 program. Along with several other crucial steps of the process, the main final assembly line can be found here. Airbus recognizes the value of the plant, previously announcing other significant investments. Additionally, the company recently shared the need to recruit at least 500 workers at the site as output rises.

Now, the manufacturer has proudly revealed a joint investment by the government of Quebec to help scale the A220 program’s production at the site. In February 2020, the province's authority became the joint owner of the A220 program with Airbus as Bombardier exited commercial aviation.

With over 660 orders and nearly 200 deliveries, the Airbus A220 is increasing in popularity since its introduction under its previous umbrella of the Bombardier CSeries. Airlines are highlighting the narrowbody's balance of economics of comfort a key reason for its deployment. Split between the -100 and 300 variants, Delta Air lines, airBaltic, Air Canada, EgyptAir, Korean Air, jetBlue, Air France, Air Tanzania, Air Austral, Iraqi Airways, and Breeze Airways all hold A220 family aircraft.

Air Austral Airbus
Airbus has a 75% holding in Airbus Canada Limited Partnership while the government of Quebec holds the other 25%. Photo: Airbus

Helping the economy

Amid, the demand for quicker output in the ever-changing conditions of the global aviation industry, Quebec is investing US$300 million, while Airbus is investing US$900 million. The initiative will help maintain thousands of jobs in the province's aeronautical sector while supporting the creation of new roles.

François Legault, Premier of Quebec shared the following in a statement.

“Today's announcement is significant for our aerospace industry. We are going to invest 300 million US dollars in the Airbus A220 program. It will make it possible to protect 2,500 well-paid jobs in Mirabel . Airbus is a good partner for Quebec. The company continued to rely on Quebec engineering to build one of the most promising aircraft in the world.”

Notably, the investment marks the possible postponement of Quebec's stake buyout, which was set to take place to 2026. Now, the buyout may be scheduled for 2030, highlighting the long-term value that Quebec's government sees in the program.

Guillaume Faury, Chairman and CEO of Airbus added in the statement:

“The global aerospace industry has been showing signs of recovery for several months. Single-aisle aircraft, including the A220 designed and assembled in Mirabel, are the first to recover from the aftermath of the pandemic. Moreover, our recent announcements of A220 orders and delivery figures for 2021 bear witness to this. The A220 has a strong order book, with nearly 500 aircraft to be delivered over the next few years.”

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Delta Air Lines Airbus A220 Mirabel
While there is a second assembly line in Mobile, Alabama, the final assembly line is based in Mirabel. Photo: Airbus

The growth continues

Altogether, with a backlog of 475 aircraft, the investment will help Airbus Canada ramp-up their deliveries to carriers across the globe. There has been additional interest in stretched and extended range variants, along with increasing interest in different regions. So, we can expect plenty of further developments with the A220 program this decade.

What are your thoughts about the joint investment by Airbus and the Quebec government in Airbus Canada to support the A220's production? What do you make of the overall initiative? Let us know what you think of the program's prospects in the comment section.