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Bombardier faces US probes initiated by Boeing claims


The US authorities are ready to start an investigation into the dishonest trade allegations by US plane manufacturer Boeing against the Canadian Bombardier. Boeing accuses Bombardier of selling CSeries aircraft to Delta Air Lines at prices dumped below cost, according to Reuters.

Representatives of the US manufacturer claim that Bombardier had offered their planes at prices as low as $19.6 million, way lower that the production cost of $33.2 million.

Complaining against Bombardier, Boeing argues that the entire CSeries project – competing with Boeing 737-300 and 737 MAX7 jets – would not have been possible without the subsidies received from the governments of Canada, Great Britain and Quebec.

“Propelled by massive, supply-creating and illegal government subsidies, Bombardier has embarked on an aggressive campaign to dump its CSeries aircraft in the United States,” Boeing’s petition reads.

Bombardier rejects all accusations of the US manufacturer. The US Department of Commerce will investigate the dispute.


Testing ground before case against Airbus?

In the end of 2016, Delta Air Lines canceled a deal with Boeing for the purchase of 18 Boeing 787-8 Dreamliners. The amount of the canceled transaction is estimated at $4 billion. At the same time, in April 2016, Delta Air Lines entered into an agreement with Bombardier to purchase 75 CS100 aircraft valued at $5.6 billion.

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Tokyo has been paying more attention to the dispute between Brazil and Canada at the World Trade Organization over the subsidies of the Canadian government to Bombardier. Japan places its own position as the main exporter of aircraft components, according to a WTO document quoted by Law 360 journalists.
 

The airline explained that the contract for the purchase of Canadian aircraft was “inherited” from Northwest Airlines, with which the carrier merged in 2008.

According to a recent analysis published on Leeham News, the case against Bombardier might be a testing ground for a future case against Airbus. A case won against Bombardier would provide a precedent for similar action against Boeing’s arch rival. 

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