The Boeing-Bombardier-Airbus-Embraer mash up- a big chess match

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ITC explains why Bombardier won trade dispute against Boeing

 

Bombardier over Boeing at ITC

Airbus and Bombardier partner

Boeing and Embraer dance

bombardier-cs300-vs-boeing-737-max-7-4-638

 

The International Trade Commissioners decided 4-0 against the Boeing Company in its Anti-dumping and Countervailing Complaint against Bombardier Inc. The hearing before the Commission was attended by

  • Ambassador from Canada
  • Ambassador from the United Kingdom,
  • the Minister Counselor and Head of Trade Section of the EU
 and
  • a delegation from Delta Air Lines, Inc.

This was not your ordinary trade commission case!!!

ITC seal and building

The Canadian Prime Minister threatened Boeing with refusal of buying its jets Boeing F/A-18 Super Hornets. There were quotes insinuating that the Commerce Department and the ITC were “Homers” likely to find for the US private company and against the Canadian Company. Boeing asserted and Commerce found that the price of the CS 100 and CS 300 was lowered by major subsidies from its country. Prime Minister May called President Trump asking him to reverse this 300% Tariff.

Prime Minister Justin Trudeau and British Prime Minister Theresa May walk in the Hall of Honour on Parliament Hill in Ottawa during a visit on Monday, Sept. 18, 2017. THE CANADIAN PRESS/Justin Tang

 

The ITC decision avoided the subsidy issue by finding that the U.S. industry is not materially injured or threatened with material injury by reason of imports of 100- to 150-seat large civil aircraft from Canada. The reason was that the U.S. plane maker’s smallest aircraft – the 737 MAX 7 – does not compete against the Canadian 100 – to 150 seat C Series. “The higher standard seating capacity of the 737-700 and 737 MAX 7 limits competition between those models and the CS100 for some purchasers,” is noted in the ruling

DL CS100 CS300

SC100 and 300 specs

 

 

 

 

 

 

 

 

 

Southwest B-7373 Max

 

 

 

B737 max specs

 

 

The ITC’s reliance on the aircrafts’ different capacity avoided its finding that the Canadian government in the project constituted an illegal subsidy.

Boeing loses trade case over Bombardier passenger jets

The CNBC headline is correct in that Delta will be able to but its order of the Bombardier aircraft at the lower price. Further, the threat of the Boeing action precipitated Airbus’ taking a majority stake in Bombardier’s controversial C-Series jet program.

-boeing-embraer-split

That, in turn, moved Boeing to move its piece on the aerospace global chess board to Brazil. The gambit may align Boeing and Embraer, with its highly successful regional airliner program.

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