Filings shed light on Bombardier-Boeing dispute

MONTREAL — Boeing says its trade complaint against Bombardier is designed to prevent the Montreal-based rival from using subsidies to build a larger version of the CSeries plane that would directly compete with its own flagship narrowbody 737 aircraft.

Last week, Boeing filed a document with the U.S. International Trade Commission that sheds new light on the tit-for-tat dispute between the two aerospace manufacturers.

In the 109-page filing, Boeing said Bombardier would be positioned to build a full-fleet of single-aisle planes — repeating a strategy employed by French aerospace company Airbus — if Canadian subsidies to Bombardier are left unaddressed.

“The U.S. industry has been the victim of this exact strategy before, as subsidies to Airbus enabled it to push McDonnell Douglas and Lockheed from the market, and capture 50 per cent global market share, destroying countless high-paying, skilled U.S. jobs in the process,” Boeing said.

Bombardier (TSX:BBD.B) said in a separate filing that Boeing’s effort to shut down its innovative technology from the market is “misguided,” adding that the complaint is tantamount to asking the U.S. International Trade Commission to imagine a hypothetical world in the future.

The company said its CSeries commercial jet isn’t an imminent threat to Boeing because the first planes won’t be delivered to Delta for another year, Boeing doesn’t sell a comparable product and Boeing’s 737 production is sold out for about eight years with a backlog valued at about US$190 billion, Bombardier said.

“Using this case as an Airbus ‘do-over’ is a misuse of the statutory threat provision,” Bombardier said.

Bombardier also rejected Boeing’s claim that it is suffering present material injury as a result of Delta Air Lines’ CSeries order.

“If Boeing were correct that Delta established momentum for Bombardier, and caused harm to Boeing, one would expect to see additional CSeries orders in the U.S. market, but not one has occurred in the 13 months since the Delta purchase of CS100s,” Bombardier said.

Boeing’s 737 fleet is expected to generate US$26 billion in free cash flow over the next four years, but the Chicago-based firm said it would be wrong to assume that it is not vulnerable to the threat subsidies pose, as the history with Airbus shows.

The dispute has become politically charged, with Ottawa recently announcing that it was reviewing current military procurement projects with Boeing — a thinly veiled threat to scrap the planned purchase of 18 Super Hornet fighter jets from the company.

Boeing has petitioned the U.S. Commerce Department and the U.S. International Trade Commission to investigate subsidies for Bombardier’s CSeries aircraft that it says have allowed the company to export planes at well below cost. A preliminary determination on the petition is expected by June 12.

Just Posted

Relatives of murdered family critical of killers’ sentences

Open letter to sentencing judge criticizes ruling allowing killers to apply for parole in 25 years

City rolling out Green Carts

Green Carts used for organics, such as yard waste, food scraps and pet waste

New teaching standards applauded

New code of standards affecting teachers, principals and superintendents to kick in Sept. 1, 2019

UPDATED: Agriculture minister speaks to cattle producers

2018 Alberta Beef Industry Conference underway in Red Deer

Updated: Red Deer gets WHL Bantam Draft and Awards Banquet

WHL will holds its draft and awards ceremony in Red Deer for next three years

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Twenty years later, figure skating’s most famous backflip remains amazing (and illegal)

Figure skating involves spins, jumps, twizzles and a whole host of other… Continue reading

You don’t need to chop like a TV chef to get the job done

Standing in line at the emergency room, makeshift bandage around my finger,… Continue reading

Seychelles swaps debt for groundbreaking marine protection

CURIEUSE ISLAND, Seychelles — With deep blue waters, white sand beaches and… Continue reading

Trump endorses raising minimum age to 21 for more weapons

WASHINGTON — President Donald Trump endorsed stricter gun-control measures Thursday, including raising… Continue reading

Red Deer blood clinic in need of 600 donors

Aunt encourages Central Albertans to donate blood after losing nephew

Court considers banning diesel cars in German cities

BERLIN — A German court began considering Thursday whether authorities should ban… Continue reading

US women beat Canada in Olympic hockey; Gisin tops Shiffrin

PYEONGCHANG, Korea, Republic Of — A tense shootout, a dazzling deke and… Continue reading

Most Read

Five-day delivery plus unlimited digital access for $185 for 260 issues (must live in delivery area to qualify) Unlimited Digital Access 99 cents for the first four weeks and then only $15 per month Five-day delivery plus unlimited digital access for $15 a month