Page 9 - AAA NOVEMBER - DECEMBER 2017 Online Magazine

COVER STORY

with the U.S. on one side and Canada and in the U.S. can resolve the issue because the U.S. U.S. International Trade Commission
United Kingdom on the other, as well. it then becomes a domestic product,” asking it to reject Boeing’s complaint. If
Following Boeing’s complaint that Bellemare recently told reporters at Airbus’s C Series planes are built in Alabama, one
Bombardier had violated trade law by selling headquarters in Toulouse. can expect to see more carriers adding the
75 of its C Series jets to Delta Air Lines for Boeing, which dismissed the partnership aircraft to their fleet.
“absurdly low prices,” the U.S. Department of as a “questionable deal between two state
Commerce had recently issued a preliminary subsidized competitors” to try to skirt a The Risk for Boeing
ruling imposing an anti-dumping and anti- recent U.S. trade finding against the CSeries, By aggressively pursuing its complaint
subsidy duties of 300 percent on Bombardier. however does not think the deal will allow against Bombardier, Boeing runs the risk of
If the tariffs stay even after the final ruling, Bombardier to circumvent the tariffs. “Any hurting the market prospects of its Super
it will drastically increase the price of the C duties finally levied against the C-Series... Hornet jets. Canadian Prime Minister Justin
Series aircraft for U.S. customers. will have to be paid on any imported C-Series Trudeau has said that his government could
Bombardier, which has denied the airplane or part, or it will not be permitted stop doing business with Boeing if it pursued
dumping charge, sees Boeing’s complaint into the country,” Michael Luttig, Boeing’s it complaint against Bombardier.
as an attempt to block the C Series from general counsel, said in a statement. “Canada won’t do business with a
entering the U.S. market. It also contends All the talk about tariffs hasn’t fazed company that’s busy trying to sue us and
that Boeing itself sells aircraft below Delta. “We will not pay those tariffs and put our aerospace workers out of business,”
production costs for years after launching a that is very clear,” Bastian, who had earlier Trudeau said, not mincing words. The country,
new aircraft. called the recommended tariff “absurd”, told which had been in discussions to purchase
Many industry experts are of the opinion investors on an earnings call recently last 18 F/A-18 Super Hornet fighter jets from
that Boeing’s complaint against C Series, week. The airline plans to take delivery of the Boeing, have put the discussions on hold
when it does not have any aircraft to compete jets, he added. If Delta goes ahead with its because of the ongoing trade dispute. Even if
against it, is a tactical move to not allow the purchase of the planes and Airbus assembles the dispute is settled amicably, Canada could
Canadian company any foothold in the U.S. some of the C Series aircraft in Alabama by look beyond Boeing, which has dominated
The Bombardier C Series plane is smaller expanding the facility where it builds larger the country defence market, and welcome
than Boeing’s smallest aircraft, the 737, and single-aisle jets for U.S. airlines, it could give Airbus or the other American defence giant,
are essentially targeting different markets. the C Series programme the fillip it is seeking. Lockheed Martin. Bombardier expects a
The deal with Airbus, which includes the Bombardier does have the backing of carriers $400 million loss in commercial aircraft this
clause that additional C Series production such as JetBlue Airways, which does not have year, but has set a breakeven target for 2020.
would occur at Airbus’ manufacturing site Boeing or Bombardier aircraft in its fleet, With the new deal, the break-even date could
in Alabama, U.S., might help Bombardier Spirit Airlines and Sun Country Airlines. All come sooner.
dodge the huge import tariff. “Assembly three have submitted letters last month to
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