Yahoo Finance Airbus: A PwC study reveals the economic impact of the A220 estimated at more than 40 billion over 20 years in Canada
MONTREAL, Nov, 9, 2023 /CNW/ - As a key pillar of the Canadian aerospace sector, Airbus Canada proudly presents a significant economic analysis conducted by PwC Canada, marking the fifth anniversary of the A220's integration into the Airbus Family. The limited partnership, headquartered in Mirabel, Quebec, is responsible for the development and manufacturing of the A220 single-aisle aircraft family and is majority-owned by Airbus SE (75% of shares) and Investissement Québec (25% of shares, acting as an agent of the Quebec government). The study also includes the company's forecasts for the next 15 years.
It was during the presence of the CEO of Airbus Canada, Benoît Schultz, at the Chamber of Commerce of Metropolitan Montreal (CCMM) today that the results of this study were revealed, indicating that the A220 has had a major economic impact between 2018 and 2022, both in Quebec and at the pan-Canadian level. The A220 programme was behind 60% of the value of aerial vehicles and spacecraft produced in Quebec for the period, making Airbus the province's leading exporter in this category. In Quebec, the A220 contributed CA $ 4.9 billion to the GDP, supported 27,130 jobs for the period, and generated CA $ 3 billion in labour income. These figures are equally impressive at the Canada-wide level, with a contribution of CA $ 5.7 billion to the GDP, 33,242 jobs for the period, and CA $ 3.5 billion in labour income. It is important to note that nearly half of the period covered by the study was marked by the pandemic, the worst economic crisis that the aviation industry has known to date. Over 20 years, the local impacts are estimated at approximately CA $ 35 billion for the A220 in Quebec and over CA $ 40 billion for all of Canada.
"The economic impact of the A220 programme extends well beyond our company. Benefiting a multitude of stakeholders at both the provincial and federal levels, this significant contribution since 2018 has resulted in thousands of additional jobs, numerous contracts to local suppliers, and considerable exports around the world that showcase the ingenuity and expertise from here. I am honoured to give the A220 everything it deserves to ensure its success, which is ultimately our collective pride and international standing. I have no doubt that the future of the A220 and Airbus in Canada is bright," said Benoît Schultz, CEO of Airbus Canada.
A socio-economic significance over time
Economic forecasts for the period from 2023 to 2038 suggest that the A220 will continue to be a major pillar of the Canadian economy. In Quebec, the total projected economic impact is anticipated to reach CA $ 30.1 billion in GDP, supporting 210,035 job years over the period and generating CA $ 18.3 billion in labour income. Nationally, the anticipated impact is even more substantial. The projected total economic impact for Canada is expected to be CA $ 35.2 billion in GDP, with 247,771 jobs supported over the period and CA $ 21.2 billion in labour income. Furthermore, the expected total tax impact is projected to be CA $ 7.8 billion, distributed among federal, provincial, and municipal governments. These projections also highlight Airbus Canada's ongoing commitment to economic growth and sustainable development. We estimate that a fleet of 20 A220 aircraft will contribute to a reduction in CO2 emissions of about 1.1 million tonnes over 15 years compared to a fleet of similarly sized aircraft from the previous generation.
An expansion planned at the Airbus site in Mirabel
The Mirabel site, where the A220 programme and its main final assembly line is located, will continue to expand over the coming months as a flight test center for A220 aircraft. The flight center will be officially established in an existing adjacent building that will be optimized. Test aircraft, as well as test benches, will be operated in Mirabel and will require the support of highly qualified employees to sustain the continuous improvements made to the aircraft.
Furthermore, a delivery center dedicated to activities with airlines from all regions of the world will be built on the site over the next year. This expansion is necessary to ensure sufficient space, free up work positions on the final assembly line, and offer A220 customers a delivery experience similar to that provided at other Airbus sites around the world. These two infrastructure growth projects will support the acceleration of the A220 aircraft delivery rate, with assembly capacity expected to increase to 14 aircraft per month in 2026. Airbus in Mirabel currently employs about 3,000 people and has reached 80% of its goal of 700 new hires this year alone. Furthermore, the PwC study identified that the average income of an Airbus Canada employee is 87% higher than the average salary across all industries in Quebec.
About the A220
By the end of October, Airbus had received close to 820 orders from about thirty customers for the A220, of which more than 295 have been delivered. The A220 is already successfully in service with 17 airlines around the world. To learn more about the A220 Family, visit our page here.
About Airbus in Canada
In Canada, over 4,000 people are employed at around ten Airbus sites and offices and its subsidiaries. The main production sites include the headquarters of the A220 commercial aircraft programme and Airbus Atlantic Canada, both located in Mirabel, Quebec, Airbus Helicopters Canada in Fort Erie, Ontario, and NAVBLUE in Waterloo, Ontario. Other Airbus sites and subsidiaries are located in Ontario, Nova Scotia, and Quebec. For more information about Airbus in Canada, please visit our website here.
To view the full report of the study, please click here.
SOURCE Airbus
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