A logo of jet manufacturer Bombardier is pictured on their booth during EBACE in Geneva
Bombardier's 'high-risk turnaround' in the spotlight as investors await earnings - BNN
"Boeing doesn't want a quick decision," Addison Schonland, partner at AirInsight
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By Paige Ellis
Bombardier's "high-risk turnaround" will be in the spotlight next week as the company releases quarterly results amid an escalating U.S. trade spat.
The airplane and train maker surprised the street in May when its cash burn, a closely-watched metric in this capital-intensive industry, beat expectations.
For some, it was an encouraging sign Bombardier (BBDb.TO 1.67%) may meet its ambitious 2018 and 2020 financial goals.
But experts warn the trade dispute, which could result in potentially punitive duties on CSeries jets, represents a risk for the all-important program.
The company accused its Canadian rival of launching a "subsidy-fueled attack" on the U.S. market, selling jets to Delta Air Lines at "absurdly low prices."
The Atlanta-based carrier agreed to buy as many as 125 CS100 jets last April, breaking a lengthy CSeries sales drought.
Bombardier denies Boeing's allegations, arguing they're an attempt to stall the Montreal company's momentum.
"We are coming into the market with an aircraft that is not competing with [any] Boeing products," CEO Alain Bellemare told BNN in a May interview.
Despite threats from Ottawa to renege on a potential deal with Boeing's military division, the U.S. Trade Commission ruled there's enough evidence to merit an investigation into Boeing's complaint.
The Department of Commerce is expected to make a preliminary ruling in late September, but analysts and experts warn Boeing may be inclined to drag out the process.
"Boeing doesn't want a quick decision," Addison Schonland, partner at AirInsight, said in a phone interview. "If they prolong the process, Bombardier management will be distracted and it will make all customers in the U.S. nervous."
Bombardier's July 28 earnings release will...