Bombardier loses battle with Boeing

Theresa May was struggling today to contain the fallout from a United States ruling in a dispute over aircraft manufacture that puts 14,000 British jobs at risk.

The Commerce Department slapped duties of almost 220 percent on Canada’s Bombardier C Series aircraft Tuesday in a victory for Boeing that is likely to raise tensions between the United States and its allies Canada and Britain.

The ruling is a political headache for Britain’s minority Conservative government, which relies on support from a Northern Irish party to stay in power. The Canadian government could also take the case to the World Trade Organization in Geneva.

The British government said that the stance by Boeing was not justified and not the type of position it would expect from one of its long-term partners.

In a statement sent to Sputnik, Ann McGregor, Chief Executive of Northern Ireland Chamber of Commerce and Industry, expressed “bitter disappointment” at the Department of Commerce’s decision.

But there was also a glimmer of good news, after a senior Bombardier official said the firm was hoping to close several deals with Chinese airlines.

“We believe the key area of concern will be what Delta does with its order”, Walter Spracklin, an analyst at RBC Capital Markets, said in a note to clients.

Manufacturing Northern Ireland, an industry group, said the row was an ominous sign of the difficulties Britain could face after leaving the EU.

Delta, which will use the jet on short and medium range flights around the USA, cautioned that the ITC’s decision was preliminary.

Many people told CTV they don’t know if they’re going to lose their jobs, while their union called the ruling a disgusting, nightmare scenario.

If the order proceeds, United States customs will be instructed to collect cash deposits from importers of CSeries aircraft.

The Canadian department of commerce imposed a 220 percent tariff Tuesday on Canada’s Bombardier aircraft.

The penalties will take effect only if the ITC affirms its stance in a final ruling expected in early 2018.

Boeing contends that by breaking USA and global trade laws, Bombardier created an unfair playing field in the aerospace industry that poses a risk to its long-term business.

It’s also extremely rich for Boeing to moan about government aid to a small competitor when it has benefited from decades of lavish support from the US defence department.

Boeing claims the CSeries was sold to Delta for less than $20 million, well below the $33 million price of production-figures Bombardier and the airline dispute.

She said later that evening: “I will be doing everything I can – as the government has been – working with Arlene Foster and Michelle O’Neill, to ensure that we can try to make sure the future of Bombardier is protected”. A Chinese-owned C Series would probably be an even fiercer competitor for Boeing, especially if it moves into building larger aircraft.

Delta says Boeing doesn’t even make the 100-seat planes it needs for short- to medium-range trips.