Benjamin Zhang/Business Insider
The International Trade Commission has voted unanimously in favor of Bombardier and against Boeing’s claim that the Canadian airplane maker’s sale of next-generation C Series airlines to Delta damaged sales of its rival 737-700.
Boeing and Bombardier have been engaged in a trade dispute over the 2016 sale of 75 next generation C Series airliners to Delta Air Lines.
Boeing filed a complaint with the US Commerce Department in April 2017 claiming that its business was harmed when Delta received unnaturally low prices on the Bombardier jets made possible only through Canadian government subsidies.
Boeing needed just two of the four ITC commissioners to vote its way to win while Bombardier needed three. According to Flight Global’s Stephen Trimble, the four ITC commissioners voted unanimously in favor of Bombardier.
In October, the US Department of Commerce recommended a 300% tariff on US-bound Bombardier C Series jets.
However, Bombardier and Delta have both argued that the 737-700 is a significantly larger aircraft than the CS100 jets ordered by Delta, and thus does not compete in the same market segment. As a result, there could not have been and will not be harmful to Boeing.
In a statement to Business Insider, Bombardier wrote:
“Today’s decision is a victory for innovation, competition, and the rule of law. It is also a victory for U.S. airlines and the U.S. traveling public. The C Series is the most innovative and efficient new aircraft in a generation. Its development and production represent thousands of jobs in the United States, Canada, and the United Kingdom. We are extremely proud of our employees, investors and suppliers who have worked together to bring this remarkable aircraft to the market. With this matter behind us, we are moving full speed ahead with finalizing our partnership with Airbus. Integration planning is going well and we look forward to delivering the C Series to the U.S. market so that U.S. airlines and the U.S. flying public can enjoy the many benefits of this remarkable aircraft.”
Boeing also issued a statement on the matter:
“We are disappointed that the International Trade Commission did not recognize the harm that Boeing has suffered from the billions of dollars in illegal government subsidies that the Department of Commerce found Bombardier received and used to dump aircraft in the U.S. small single-aisle airplane market. Those violations have harmed the U.S. aerospace industry, and we are feeling the effects of those unfair business practices in the market every day.
“While we disagree with the ITC’s conclusion today, we will review the Commission’s more detailed opinions in full as they are released in the coming days.
“Boeing remains confident in the facts of our case and will continue to document any harm to Boeing and our extensive U.S. supply chain that results from illegal subsidies and dumped pricing. We will not stand by as Bombardier’s illegal business practices continue to harm American workers and the aerospace industry they support. Global trade only works if everyone adheres to the rules we have all agreed to. That’s a belief we will continue to defend.”
This story is developing, please check back for updates.
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