Nobody puts Bombardier in a corner.

Canadian plane manufacturer Bombardier (BBD.B.TO) may have found a way to circumvent the almost 300 percent duties imposed by the U.S. government on its jets.

The company today announced French giant Airbus will acquire a majority stake (50.01 percent) in its C Series business with no cash investment. Airbus will provide procurement, sales and marketing, and customer support expertise, but most importantly, the C Series will be built for U.S. airlines at Airbus’ manufacturing site in Alabama. "Not only will this partnership secure the C Series and its industrial operations in Canada, the U.K. and China, but we also bring new jobs to the U.S.," said Airbus Chief Executive Officer Tom Enders.

Bombardier Chief Executive Alain Bellemare said the partnership could more than double the value of the C-Series program and ensures the aircraft realizes its full potentiaI. In a media conference call, Bellemare said the U.S. assembly line will mean his company's planes won't be subject to anti-dumping, anti-subsidy duties, reported Reuters. 

In a petition filed with the U.S. government in April, Boeing (BA) had said it was being forced out of the 100-150 seat jet market since Bombardier was able to price its C Series planes at a much lower rate thanks to government subsidies it received. In response to the news about the partnership, a Boeing spokesman said, "This looks like a questionable deal between two heavily state-subsidized competitors to skirt the recent findings of the U.S. government. Our position remains that everyone should play by the same rules for free and fair trade to work." Analysts expect Boeing to develop a closer relationship with Brazil's Embraer in response to the Airbus-Bombardier alliance.

Responding to the announcement, Delta Airlines (DAL), which was at the heart of the trade dispute after it ordered as many as 125 CS100 planes from Bombardier, has confirmed it looks forward to introducing the planes into its fleet. According to Reuters, analysts expect partnering with Airbus will help debt-laden Bombardier gain customers in the Asian market.

Boeing stock fell 0.87 percent after-hours, whereas Airbus stock rose 2.53 percent and Bombardier stock rose 1.29 percent on Tuesday.

Want to learn how to invest?

Get a free 10 week email series that will teach you how to start investing.

Delivered twice a week, straight to your inbox.