wnol.info January 22 2018


United States Rules In Favor Of Boeing, Slaps Bombardier With Tax

January 22 2018, 02:15 | Alonzo Simpson

The Bombardier Aerospace plant in east Belfast

The Bombardier Aerospace plant in east Belfast

Boeing said Bombardier hurt its chances of selling its 737 airplane in the US, which Bombardier denies.In a twist, European aerospace company Airbus, Boeing's chief rival, swooped in October, agreeing to buy a majority stake in the struggling C Series program.Bombardier plans to build the planes in Mobile, Alabama, where Airbus assembles narrow-body jets.

The decision follows the Commerce Department's preliminary recommendation of duties of that amount on Bombardier's C Series jets, earlier this autumn. If no injury is found, the ITC could terminate the Commerce Department's tariff.

European planemaker Airbus SE, which is buying a controlling stake in the CSeries program and has a competing plane, has said it would add a second CSeries production line to a factory in Alabama, making it a US product for domestic airlines. But the panel also appeared dubious about Bombardier's claims that the CSeries and the smallest versions of the 737 do not compete against each other at all.

Canada's ambassador to the United States, David MacNaughton, warned that a positive finding of material harm to Boeing by the ITC could represent a possible violation of World Trade Organization agreements and prompt a more formal complaint with the global trade group.

"Boeing does not produce an aircraft in the same class as Bombardier's C Series and didn't even bid for the Delta contract it is complaining about, which leaves its complaint totally without merit".

"These investigations have already established beyond question that Bombardier has taken billions of dollars in illegal government subsidies to prop up its C Series program".

With the new judgement passed on Wednesday, the US made a decision to find in favor of Boeing.

The U.S. Department of Commerce was due to finalize the proposed duties on Monday or Tuesday.

Delta is expected to wait for that new plant to open before taking delivery of their order.

The tariff will apply "regardless of whether they enter the United States fully or partially assembled", the Commerce Department says.

Boeing argues that Bombardier signed a deal to sell its new single-aisle CS 100 planes with a price tag of just $19.6 million each, far below the $33.2 million construction cost, and a pittance compared with the list price of $79.5 million - though that amount is nearly never paid.

Canada's government will review the final determinations to consider next steps and options for appeal, she said.



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