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Bombardier Wins Trade Dispute Against Boeing

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Bombardier Wins Trade Dispute Against Boeing

Bombardier Wins Trade Dispute Against Boeing
January 26
18:50 2018

MIAMI — Bombardier has announced that the United States International Trade Commission (ITC) has rejected the controversial complaint brought by Boeing, that if approved, would have implemented a 292% tax on US imports of the CSeries jet.

The news have been welcomed across the globe in places such as the United Kingdom due to Bombardier having plants and supply chains in Belfast and around the rest of the UK.

It has also been welcomed in their U.S. and Canadian factories too, especially in Mobile, Alabama where most of the production will take place given the acquisition of the program from Airbus.

The Ruling

The ITC voted 4-0 in favor of Bombardier, striking a massive blow against Boeing, who was frantically looking for ways to curtail Bombardier’s ability to grab a piece of the market in the 110-150-seat market.

This decision helps over 4,000 jobs in Bombardier’s Belfast factory, where the wings of the CSeries are manufactured.

The US Commerce Department will now have to reverse its plans for the massive tariffs placed against the CSeries program, which doesn’t compete against the 737-700/MAX 7 plane, falling short both in seat and range, respectively.

“Today’s decision is a victory for innovation, competition, and the rule of law,” said Bombardier in a statement. “It is also a victory for U.S. airlines and the U.S. traveling public.”

“The CSeries is the most innovative and efficient new aircraft in a generation. Its development and production represent thousands of jobs in the United States, Canada, and the United Kingdom,” the manufacturer said.

Delta’s Reaction

Delta Air Lines, one of Bombardier’s largest customers for the CSeries program, admitted being pleased by the ITC’s ruling, which rejected “Boeing’s anti-competitive attempt to deny U.S. airlines and the U.S. traveling public access to the state-of-the-art 110-seat CS100 aircraft when Boeing offers no viable alternative.”

The airline’s CEO, Ed Bastian, had been very vocal against the potential tariffs placed against the CSeries program. “The CSeries debate or the decision from commerce is not just disappointing, it doesn’t make a whole lot of sense,” he said at the time.

Bastian, however, remained calm and very sure that the tariffs were nothing but a delusion. “We will not pay those tariffs, and that is very clear. We intend to take the aircraft (…) We’re not going to be forced to pay tariffs or do any anything of the ilk. So there should not be any concerns on our investors’ minds in that regard,” he declared.

Delta currently holds firm orders for 75 of the CSeries aircraft, being the airline which would have suffered the most if the tariffs had been approved.

The Atlanta-based carrier has robust plans with its new CSeries planes, which are destined to replace the airline’s MD-80s, as well as smaller, older regional jets.

With the ITC’s decision, the airline will have to re-structure its MD-80 replacement plans given that the CSeries program remains delayed, despite the tariffs being officially withdrawn.

Overall Results

These rejections made by the ITC help some nearly 20 customers of the CSeries aircraft as well as the future 341 aircraft that are in backlog.

It will help other larger customers such as Air Canada, Lufthansa, and Republic Airways also regarding the cost-setting.

On the more futuristic perspective, it also works wonders for any further prospective customers that want to buy the aircraft. With the tariffs not becoming a reality, carriers could express orders without the worry of paying more for what they are receiving.

This is a massive victory for Bombardier and will enable them to grow further without any such restriction from other areas of the industry.

The Canadian manufacturer’s partnership with Airbus, according to Bombardier, is progressing with strength. Senior Leaders from both companies are meeting in Montreal to discuss integration planning.

They can now look ahead into the rest of the year with the Singapore and Farnborough Airshows on their way in the next few weeks and also going into the summer.

“With this matter behind us, we are moving full speed ahead with finalizing our partnership with Airbus,” said Bombardier. “Integration planning is going well, and we look forward to delivering the C Series to the U.S. market so that U.S. airlines and the U.S. flying public can enjoy the many benefits of this remarkable aircraft.”


About Author

James Field

James Field

James is a passionate AvGeek based in Manchester, U.K who has been actively spotting for years. James has been an Aviation Enthusiast for 8 years and has a fond likening to Concorde! James hopes to grow in the aviation industry with journalism being his primary focus.

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  1. Layman
    Layman January 27, 02:19

    Instead of writing that Bombardier has won, the headline should really have read:”Boeing loses case against Free trade”.
    In reality, Boeing managed to strengthen both Bombardier and Airbus to create a strong competitor. Boeing has also lost credibility in the marketplace by making illogical claims. They have also alienated the Canadian and British governments.

  2. Walkingthedog
    Walkingthedog January 27, 04:07

    That is great news for aviation and great news for Boeing. They will now be able to employ more staff for their Throw All The Toys Out Of The Pram department.

  3. Walkingthedog
    Walkingthedog January 27, 11:38

    I agree Layman. As soon as anything happens that they think might lose them a dollar they run home and tell their mum. I think they are pathetic and it is unnecessary as they are world leaders and build very fine aircraft.

  4. James Field
    James Field Author January 29, 04:32

    Thank you for your comments Layman 🙂 – We will work on that for the next article we write related to it 🙂


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