The U.S. Department of Commerce has upheld its earlier preliminary tariff decisions against Bombardier CSeries aircraft

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The U.S. Department of Commerce has upheld its earlier preliminary tariff decisions against Bombardier. However, the CSeries tariffs are not final unless the International Trade Commission determines that Boeing was harmed by the alleged subsidies and price dumping at Delta Air Lines.

Bombardier reacts with disappointment:

Bombardier statement on Department of Commerce determinations

Mike Nadolski, Vice President Communications and Public Affairs, issued the following statement in response to tariff determinations issued today by the U.S. Department of Commerce:

The evidence presented Monday at the U.S. International Trade Commission demonstrated that Boeing’s petition is an unfounded assault on airlines, the flying public, and the U.S. aerospace industry.  That has been true since the start of the investigation, and recent developments make it even clearer, particularly the Bombardier and Airbus partnership, which will include the construction of a new U.S. manufacturing facility in Alabama. This facility will provide U.S. airlines with a U.S.-built plane thereby eliminating any possibility of harm due to imports.

Unfortunately, the Commerce Department decision is divorced from this reality and ignores long-standing business practices in the aerospace industry, including launch pricing and the financing of multibillion-dollar aircraft programs.  Moreover, we are deeply disappointed that the Commerce Department did not take this opportunity to rectify its past errors.

We remain confident that at the end of the process, the United States International Trade Commission will reach the right conclusion, which is that the C Series benefits the U.S. aerospace industry, U.S. airlines, and the U.S. flying public.

The fact is that the CSeries simply does not threaten Boeing.  Boeing did not compete in the Delta campaign.  It has not made a plane sized to Delta’s needs for many years, since it stopped producing the 717 and 737-600.  Moreover, Boeing has acknowledged that it has oversold its 737 production capabilities and has a backlog of more than 4,300 aircraft orders that stretches years into the future. 

Bombardier’s innovative spirit led us to create the CSeries, which is more comfortable, reliable, fuel efficient, and environmentally friendly than anything else in the market.  The U.S. flying public and U.S. airlines should not be precluded from enjoying these benefits, especially given the tremendous positive impact the CSeries brings to the U.S. aerospace industry. 

Bombardier estimates that the new Alabama assembly line will add 400 to 500 direct jobs in the United States, along with thousands more indirect and induced U.S. jobs.  It will also bring approximately $300 million in new foreign direct investment to the United States. These new U.S. jobs and investment are in addition to the 22,700 jobs already supported by Bombardier’s C Series through its U.S. supply base.

December 20, 2017 Montréal Bombardier Inc.,  Press Release

 

 

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