Boeing drops Bombardier trade dispute
On March 22, 2018, a representative of Boeing announced the decision not to appeal of the ITC decision in its trade dispute with Bombardier. The Canadian constructor will be able to freely sell its C Series jets to American airlines, as it already did with Delta.
In 2017, Boeing accused the Canadian government of illegally subsidizing C Series commercial airliner program, allowing Bombardier to sell its jets at an “absurdly low” price in the American market.
The U.S. based manufacturer took as an example the cancellation of a Delta Airlines (DAL) order of 18 of its B787-8 Dreamliners for $4 billion while ordering 75 CS100 aircraft from Bombardier for a price of $5.6 billion.
Following the accusations, the United States Department of Commerce backed Boeing by imposing a 300% trade duties on C Series. But the U.S. International Trade Commission (ITC) discarded that decision in January 2018.
The ITC had stated that “U.S. industry is not materially injured or threatened with material injury by reason of imports of 100- to 150-seat large civil aircraft from Canada that the U.S. Department of Commerce (Commerce) has determined are subsidized and sold at less than fair value.“
With Boeing decision not to appeal, Bombardier will now be able to resume negotiations with American air companies to offer their newest C Series jets. In the meantime, Boeing is still setting up its joint company with Embraer to add smaller jet models — similar to the C Series — to the range of its catalogue.
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