Canada Raises Stakes In Boeing Complaint

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The U.S. Commerce Department has set Sept. 25 to issue its opinion on whether Bombardier’s sale of CSeries airliners to Delta Air Lines was “dumping.” That term normally refers to the cut-rate sale of produce, lumber or other commodities between countries when one country has a surplus it’s looking to eliminate. In this case, the commodity is $50 million airliners in a deal that is vital to Bombardier’s challenge of Boeing and Airbus in the mainstream airliner business. Delta has ordered 75 CSeries and has options for 50 more and Boeing claims it was robbed of an order for 737s by the bargain-basement deal for the Canadian aircraft propped by illegal subsidies by governments in Canada. Bombardier has, of course, denied the charge and the Canadian government has amped up the controversy by putting a pending military aircraft deal in limbo pending the decision.

The Royal Canadian Air Force’s first-generation F-18 fleet is in need of replacement and the original complement of 130 jets has dropped to less than 80 in the 30 years they’ve been flying. To shore up the fighter force while it decides on a permanent replacement fighter, Canada has tentatively agreed to buy 18 F/A-18 Super Hornets made by Boeing in St. Louis. But the Justin Trudeau government has made it clear that deal is in jeopardy if the Delta deal for CSeries airliners is threatened by the Boeing complaint.

Comments (2)

Boeing does not build a plane with the 100 seat capacity the Bombardier plane has! Talk about a bogus complaint! Boeing has a history of buying up competition and shutting down those designs. Boeing bought out deHavilland of Canada only to then scrap out all of the tooling they had. Boeing buys out McDonnell-Douglas and promptly shuts down all of those commercial (non military) products. Boeing has milked out production of the 737 just like Henry Ford and the model T and now Boeing finds itself with a 60 year old design that some airlines no longer consider desirable for passenger comfort. Myself as an airline passenger prefer Airbus and even the older Douglas planes as being more comfortable to ride in. Time for Boeing to quit wasting time and legal costs and start designing a competitive replacement for the 737.

Posted by: matthew wagner | September 2, 2017 6:59 PM    Report this comment

We should keep on the subject. US authorities assess dumping complaints from different industries. There is no reason to think that the market for a single-aisle aircraft is different, simple as that.

The government's aid time for Bombardier combined with the sale of Delta Airliners at price presumed well below the cost creates a strong constraint to claim the competitiveness of the C Series.

Posted by: Carlos Erthal | September 4, 2017 9:06 AM    Report this comment

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