Airbus heads for dogfight with UTC over CSeries costs
Airbus agreed last October to buy the struggling CSeries for a token one Canadian dollar
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April 26, 2018 by Tim Hepher, Allison Lampert - Reuters
- Among shared components, United Tech supplies engines for the CSeries and Rockwell Collins supplies cockpit systems. Aboulafia said pre-merger UTC supplied about a quarter of CSeries content.
PARIS/MONTREAL (Reuters) - Airbus is preparing to cross swords with United Technologies over the price of components and services for the Bombardier CSeries in a bid to make it easier to market the jet it agreed to bail out last year, people close to the matter said.Airbus is concerned about an increased share of the Canadian project that would be controlled by United Technologies after it completes its $23 billion acquisition of Rockwell Collins, they said, asking not to be named.
Together, the pair will have by far the largest share of CSeries parts and systems by value, placing it at the center of efforts by Airbus to reduce the plane's cost and echoing a broader power struggle between planemakers and suppliers.
A key part of the acquisition is "muscling the supply chain down on price", said Richard Aboulafia, vice president of analysis at Virginia-based Teal Group.