Airbus SE's acquisition of a majority stake in Bombardier Inc.'s C Series plane threatens to leave Boeing Co. trailing in a looming race to develop a new generation of more advanced short-haul jets.
At one level, the deal appears to be neat way of providing Airbus with a smaller narrow-body aircraft, fitting below its own A320-series models and competing with the smallest variants of Boeing's 737 workhorse while alleviating pressure on Bombardier from a bitter trade spat with its U.S. rival.
At another, the pact gives the European planemaker access to a technologically advanced, fuel-efficient design that could form the basis of its challenge in the highest volume jetliner sector for years to come, saving billions in development costs and putting the squeeze on Boeing, which is only now embarking on plans for a new short-haul model.