Bombardier wins surprising victory over Boeing

Randall Padilla
January 28, 2018

Bombardier also welcomed the ITC's ruling, calling it "a victory for innovation, competition and the rule of law".

Threat of a new challenge underscores the urgency with which Bombardier must now work with Airbus SE, its new C Series partner, to finalize their tie-up and get a planned C Series manufacturing line in Mobile, Ala., up and running.

Boeing vowed to continue to document the damage from "illegal subsidies and dumped pricing".

The U.S. International Trade Commission (ITC) on Friday unexpectedly ruled against Boeing in a trade case the Trump administration brought against Canadian rival Bombardier over C-Series commercial jets. "Those violations have harmed the USA aerospace industry, and we are feeling the effects of those unfair business practices in the market every day", Boeing added. Delta CEO Ed Bastian has a couple of times said the aircraft won't pay the levies and called the obligations "ludicrous".

Trade lawyer Mark Warner tells BNN why he thinks the U.S. Commission ruling in favour of Bombardier could fly in the face of Canada's NAFTA demands. The carrier said it looks forward to introducing the planes to its fleet.

The dispute has stressed trade agreements between Canada and the United States. Delta wanted deliveries to begin this year. Boeing has claimed Bombardier sold each 108-133-seat CS100 for just $19.6 million (€15.8m), arguing they actually cost $33.2 million (€26.7m) to make.

Boeing issued a harshly worded statement that suggested it could appeal the decision or launch a new petition.

The CSeries is an all-new, small single-aisle jet family with a five-abreast passenger cabin that's offered in two models: the CS100, seating 100 to 135 passengers, and the larger CS300, seating up to 160 passengers.

"This ruling is testament to the unwavering campaign by all involved in exposing the complaint from Boeing for what it really was - a bid to silence a competitor". It has also added to tensions between the USA and Canada, as the Trump administration seeks to renegotiate terms in the North American Free Trade Agreement, or NAFTA.

With Airbus set to close its deal for the CSeries, Boeing is now negotiating a possible agreement to acquire all or part of Bombardier's rival, Embraer of Brazil.

"It's great news, it threw me off my chair, to be honest", said David Chartrand, the Quebec coordinator of the International Association of Machinists and Aerospace Workers, which represents 6,000 workers at Bombardier plants in the Montreal area. Boeing's counteroffer included used Embraer E190s and used Boeing 717s. Sensing an opportunity, Airbus acquired a majority stake in the C Series business in October, allowing Bombardier to tap into the European aerospace giant's global marketing heft.

Airbus CEO Tom Enders tweeted that the company would "carry on with full steam". The ITC's ruling "is not the final stage in this process", he said. In December, Canada scrapped plans to buy 18 Boeing Super Hornet fight jets.

Bombardier is one of Canada's largest employers with more than 24,000 workers across Canada, with an estimated 40,000 spin-off jobs at its suppliers.

British Prime Minister Theresa May has held talks with US President Donald Trump at the World Economic Forum in the Swiss ski resort of Davos.

Other reports by AllAboutTopnews

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