Commerce Department rules against Bombardier

22 December, 2017, 02:09 | Author: Lora Ball
  • Bombardier employs around 4,000 workers in the North with teams here building the wings of the C Series planes and part of the fuselage

Delta Air Lines was originally expected to receive the first of its firm order for 75 CS100 planes next spring, but now plans to wait until the aircraft destined for US customers will be built from the Airbus manufacturing plant in Alabama.

Secretary of Commerce Wilbur Ross says the tariff decision came after a "full an unbiased review of the facts".

Bombardier called the USA decision "deeply disappointing" and said they expect the ITC to "reach the right conclusion, which is that the C Series benefits the US aerospace industry, US airlines and the US flying public". 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.

The final AD rate was set at 79.82 percent and the final CVD rate was set at 212.39 percent, down roughly 7 percent from the preliminary CVD.

"The United States is committed to a free, fair and reciprocal trade and will always stand up for American workers and companies being harmed by unfair imports".

Unifor will continue to work with Unite, the union representing Bombardier workers in Northern Ireland, on a shared strategy to protect good paying aviation jobs.

Bombardier plans to build the planes in Mobile, Alabama, where Airbus assembles narrow-body jets.

In the progress of the trade dispute, Bombardier agreed to sell a majority interest in the CSeries program to Airbus, intensifying the completion in that product category for Boeing. The complaint found a receptive ear in President Donald Trump, whose "America First" agenda has included taking a tough line in matters of worldwide commerce.

More news: Mother and 3 Children Die in Brooklyn House Fire

The U.S. International Trade Commission is expected to make a determination if Boeing was harmed by Bombardier's actions, a decision that will determine whether the investigation will be terminated.

The Administration's approach aligns with Boeing's long-term effort to push back against improper government subsidies to competitors, even as the company has been found by the World Trade Organisation to benefit from more than $1 billion of unfair benefits from the state of Washington.

"Today's decision validates Boeing's complaints about the Bombardier prices in the USA, prices that have harmed our workforce and the American industry", said Boeing in a press release.

Bombardier calls Boeing's criticism an "unfounded assault on airlines, the flying public, and the U.S. aerospace industry", saying the entire complaint has been overtaken by events.

But Boeing's trade war with Bombardier has come with a price.

He also said that Boeing's claim was meritless since they don't have an aircraft that can compare to the CSeries.

The question now before the ITC is whether those improper benefits injured Boeing in the 100-150-seat market for commercial aircraft.


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