The president of Canadian aircraft maker Bombardier said the facts of the case will vindicate his company in an ongoing trade dispute with rival Boeing. In an interview with CNBC, Bombardier president Fred Cromer said they look forward to telling their story and presenting the facts to the U.S. Department of Commerce which is handling the case.
Boeing earlier filed a complaint against Bombardier before the U.S. trade regulator, accusing the Canadian company of unfair trade practices. Boeing alleged that their competitor sold 75 C-series aircraft to U.S. Delta Airlines at a price way below the production cost. This allowed for the dumping of that many aircraft in Delta’s fleet.
According to Boeing’s calculations, the $19.6 million price tag for each C-series plane was only possible because of subsidies Bombardier receives from the Canadian government. As a result, Boeing alleges that the deal materially harms its business in the U.S.
Critics, however, dispute Boeing’s argument. They point out that Bombardier caters to a different market than Boeing’s. The former’s C-series seats about 100-150 passengers while the latter’s 737 seats 150 and above. Simply put, sales of the C-series do not threaten Boeing because it does not offer a similar product.
An opinion piece on the National Review quoted part of a brief submitted by Delta Airlines, where it explains that Boeing has not lost a single sale in the deal with Bombardier.Delta Airlines also pointed out that buying Boeing’s bigger planes would not make financial sense: it would only incur higher costs because of more empty seats, poor returns and higher ticket prices for customers.
Analysts point out that Boeing response to Bombardier is simply a way to stave off potentially disastrous competition, like what happened when Airbus was able to take a huge segment of the market. This was after Boeing ignored the European consortium when it came in 1978.
Taur, a high-tech electric scooter that was funded via Kickstarter
Taur, a new electric scooter that was funded through a crowdfunding campaign on Kickstarter can now be purchased for $1.106...
V recovery versus K recovery: what is it going to be?
The markets continue to trace out what could prove to be an important top. There are no sell signals yet,...
Gold & Dow Jones’ step sum symmetry
Like the Dow Jones, gold too is range bound between its BEV Zero and BEV -10% lines below. This is...
Alibaba’s fintech branch goes public after receiving the permission
Ant received this Wednesday, October 21st the permission from the China Securities Regulatory Commission. The jump to the stock market...
Roche signs its new diabetes business manager in Spain to Isdin
The company Roche Diabetes Care Spain, part of the Swiss pharmaceutical group, has appointed Josep Maria Vallmajó to hold the...
Africa7 days ago
Why countries in southern Africa could become leaders in the cannabis sector
Featured6 days ago
B2B only: Spotcap sells credit business to Ferratum
Business7 days ago
How to market your business during and after the pandemic
Business7 days ago
How COVID-19 has changed the VC landscape