Delta: Confident U.S. Trade Complaint Against Bombardier and its CSeries Will Be Rejected
The World is Bigger Than The USA, China is Canada New Best Friend Maybe?
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23:40 - September 26, 2017 - Quebec, Canada
As I mentioned before... Boeing lost not only the Super Hornet sales with Canada, Ottawa was in the process of ordering Boeing a bunch of new P-8 Poseidon (valued of US$257 millions each) do replace Canada very old fleet of Lockheed Aurora CP-140. (read more about this event here, section 4)
From now on, not only Boeing could be suffer by having Ottawa cancelling purchasing anything from them, but also other US firms. Remember, the selection decision regarding the order of the bulk of the next fighter jet has not been made yet. The F-35 is not the only one trying to win this contrat.
Connected sources are telling me that Dassault has added intensity to its lobbying representation to Ottawa and the embassy of France in Ottawa added two high rank military officiers spending a lot of time with the Canadian Department of Defence. The Rafale is made by Dassault from France. Dassault has a very capable "Twin Engine" fighter jet (something Canada needs in fact and should be on the requirements., oops F-35), the Rafale. Dassault also offered Canada, among other things, to have them totally assembled in Canada (read more here)
Time for Canada to get real and be taking care of Business. As for Bombardier, the world is bigger than the USA, China is our new best friend maybe?
September 27 (Wednesday) is a Big Day for Bombardier Business Jets! First Flight of its first Global 7000 with a complete interior! Global 7000 FTV4 will be flying from Bombardier Global assembly facility located at Downsview/Toronto Airport. Follow on Flightradar24.com (or their mobile apps) for the aircraft with a Mode-S of C061E0. I see it now, it is currently active! Get to NBAA in Vegas next month to see and visit it too! (oops did I revealed this??)
Also, keep following Bombardier CSeries FTV8 MSN 55002 CS300 Demo aircraft currently en route to Japan, China, Indonesia, India and other countries... Expecting orders from China at least during this trip... let's see! More info on the airlines Bombardier is visiting with its top of the line CSeries aircraft.
MONTREAL (Reuters) - Reporting by Allison Lampert; Editing by Sandra Maler
Delta Air Lines said on Tuesday it is confident that a trade complaint brought by Boeing Co against the sale of Bombardier Inc CSeries jets in the United States will be rejected at a later stage.
Delta, which ordered 75 CSeries jets in April 2016, made the statement after the U.S Commerce Department announced a preliminary 219.63 percent countervailing duty on the 110-130 seat planes. The duty is subject to a final ruling by the U.S. International Trade Commission in 2018.
A Delta Airlines aeroplane is seen inside of a hangar during a launch event of the new alliance between AeroMexico and Delta Airlines and their announcement as sponsors of the Mexican soccer team, in Mexico City, Mexico, May 3, 2017REUTERS/Edgard Garrido
Also read from CNN Jon Ostrower
- "The Commerce Department will slap stiff tariff on Bombardier's new jet"
- Boeing claims that Bombardier is selling each C Series jet to Delta for $19.6 million. That's not accurate, said Delta.
- The jet's list price is nearly $80 million, but steep discounts are common.
Read all of it here: http://money.cnn.com/2017/09/26/news/companies/bom...
Bombardier Inc. first reaction: "Statement on Commerce Department Countervailing Duties Preliminary Decision"
"We strongly disagree with the Commerce Department's preliminary decision. The magnitude of the proposed duty is absurd and divorced from the reality about the financing of multibillion-dollar aircraft programs. This result underscores what we have been saying for months: the U.S. trade laws were never intended to be used in this manner, and Boeing is seeking to use a skewed process to stifle competition and prevent U.S. airlines and their passengers from benefiting from the C Series.
The simple truth is that Bombardier created a superior aircraft that is more efficient, more comfortable, and quieter. The C Series serves a market segment not supported by any U.S. manufacturer. Delta wants to bring this remarkable new aircraft to the U.S. flying public. Boeing wants to prevent U.S. passengers from realizing these benefits, irrespective of the harm that it would cause to the U.S. aerospace industry and the cost to airlines and consumers.
Looking beyond today's and next month's preliminary decisions, the International Trade Commission will determine next year whether Boeing suffered any injury from the C Series. Because Boeing did not compete at Delta and because Boeing years ago abandoned the market the C Series serves, there is no harm.
There is wide consensus within the industry on this point, as well as a growing chorus of voices, including airlines, consumer groups, trade experts, and many others who have come forward to express grave concerns with Boeing's attempt to force U.S. airlines to buy less efficient planes with configurations they do not want and economics that do not deliver value.
The U.S. government should reject Boeing's attempt to unfairly tilt the playing field in its favor and to impose an indirect tax on the flying public through unjustified import tariffs."
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