Boeing loses bid for trade relief against Bombardier

Jan 27, 2018, 16:49
Boeing loses bid for trade relief against Bombardier

In a surprise ruling, the U.S. International Trade Commission, a government agency, on Friday rejected Boeing's complaint that it was harmed by Bombardier's trade practices. The ITC consequently shot down the U.S. aerospace giant's pleas for 300% duties against Bombardier, a measure that received the backing of the U.S. Commerce Department last month.

The aircraft decision ruling paves the way for Bombardier to begin deliveries of Canadian-built CS100 jets to Delta this year.

Photo A Bombardier CSeries plane in 2015.

Bombardier spent more than $6 billion to develop the C Series after launching it in 2008, equipping the aircraft with fuel-efficient engines, large windows and a wider-than-usual middle seat.

Chief on the list of USA sales prospects is JetBlue Airways Corp.

A U.S. International Trade Commission panel struck down 300 percent tariffs against narrow-body Canadian jetliners, siding with Montreal-based jetmaker Bombardier. What's not certain is whether this is good news, or bad news, for the Port City. The New York-based airline didn't immediately respond to a request for comment. "It is also a victory for US airlines and the USA travelling public".

"When you look at it as an industry analyst, this seems to be the right decision - that Boeing was not hurt by the C Series and Delta's decision to buy it, particularly in light of Airbus's taking over the ownership of C Series and building it in Alabama".

In a statement, Bombardier said the ITC's decision was a "victory for innovation, competition, and the rule of law".

The ITC vote contrasts with President Donald Trump's decision this week to slap tariffs on solar panels and imported washing machines on the grounds that they're harming US industry.

Boeing said the CSeries threatened its business and cited poor sales of 737-7 MAX as proof of its claim but at least three of four commissioners on the USITC disagreed.

Tariffs of 292% will not now be imposed on orders of C-Series planes by American carriers.

"We think Bombardier is going to lose because the process is designed that way", said the Canadian source, who requested anonymity because of the sensitivity of the situation. Although it is a Canadian company, Bombadier has plants in upstate New York, Pennsylvania, and Kansas.

"It's not over yet", Leslie, whose minister is responsible for U.S.

Planemaker Bombardier Inc is expected to lose a hotly contested US trade dispute this week, a Canadian government source told Reuters on Thursday, likely inflaming tensions between the two countries during talks to modernize NAFTA.

The companies are pressing ahead with a plan to manufacture the planes in Mobile, Alabama, where the European company makes single-aisle planes.

"Not only does it mean this worry is out of the way, it means (Bombardier) can now go on with strength to expand because the CSeries has just tied up with Airbus", he said. "Absolutely it'll get built". The closing is expected to occur later this year.

Boeing had claimed it stood to suffer harm by the planes, even though aircraft destined for USA customers are now slated to come from a new assembly line near the Airbus facility in Mobile, Ala. "A cloud has been lifted".

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