Bombardier wins surprising victory over Boeing

Bombardier wins surprising victory over Boeing”

This allowed Bombardier to sell the planes to Delta at unfairly low prices, which was harmful to Boeing's business, according to the aerospace giant.

The aircraft manufacturer Bombardier has won a U.S. trade dispute, in a surprise development that is likely to help protect thousands of jobs in Northern Ireland. Last year, the number of anti-dumping and countervailing duty investigations launched by the Commerce Department rose more than 60 percent.

"Today's decision is a victory for innovation, competition and rule of law", Bombardier said in a statement released shortly after the vote.

The Chicago-based company said Bombardier sold the CSeries in the less than fair value while benefiting from government subsidies.

Bombardier said it would proceed with plans to build a second assembly line for the C Series in Mobile, Alabama, where Airbus manufactures narrow-body planes.

In a final submission to the USITC, Bombardier said it expects Boeing will likely respond by filing a new petition once there is a new US order for the C Series because it doesn't believe the Alabama line will be built.

The decision means Bombardier can make deliveries to Delta Air Lines Inc.

As Reuters reports, U.S.

The ITC is an independent commission, appointed by the government and evenly split between Democrats and Republicans, that is charged with investigating the effects on USA industry of dumped and subsidized imports.

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In September, the Commerce Department proposed a tariff of 219.6% on the Canadian jets, then added an additional 79.8% tariff the following month.

The decision is going to help Bombardier sell its CSeries in the USA through removing uncertainty during a time when its rival from Brazil Embraer is bringing a new jet into the market, said a source who is familiar with the thinking of the plane and train maker in Canada.

The dispute has stressed trade agreements between Canada and the United States.

"This is not the behavior we expect from Boeing and it could indeed jeopardize our future relationship with them", British Defense Secretary Michael Fallon said a year ago.

Boeing said the CSeries threatened its business and cited poor sales of 737-7 MAX as proof of its claim but at least three of four commissioners on the USITC disagreed.

It's possible Boeing hasn't said its last word. "That's why Bombardier is willing to lose millions of dollars per plane on this sale".

Prime Minister Theresa May, who raised the issue with US President Donald Trump at the World Economic Forum in Davos, Switzerland, said: "I welcome this decision, which is good news for British industry". "It in no way should be interpreted as a broad-scale limitation on the Trump administration's trade enforcement authority".

Bombardier's CEO Alain Bellemare told CNBC after the ruling that he just met with his Airbus counterpart about the integration plan and that it was not yet clear when and from where the Canadian company's planes would be manufactured and delivered.

Ray Conner, vice chairman of Boeing, told the commission in May that major USA airlines like Delta are among the biggest and most respected airlines in the world, which could spur other carriers to buy Bombardier planes.

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