Bombardier hits back over ‘dumping’ claim by Boeing
Tuesday, 28 Apr, 2017
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Plane maker Boeing is urging the US government to act against Canada’s Bombardier which is accused of ‘dumping’ jets in the US market at below cost price.
Boeing filed a petition with the U.S. Department of Commerce and the U.S. International Trade Commission claiming ‘predatory pricing’ of CSeries planes which is in competition with Boeing 737 jets.
It says this has been possible beacuse of unfair state subsidies.
"The CSeries has received extensive government support totaling more than $3 billion so far. Bombardier launched the program in 2005 with hundreds of millions of dollars from the Canadian, Quebec and UK governments, and it has received additional government support every step of the way, including $2.5 billion in 2015 from the Government of Quebec," Boeing said.
"Notably, it is selling the aircraft into the United States at prices that are millions lower than those charged in Canada – the very definition of dumping."
It has made deals – notably with Delta Air Lines for 75 jets – at ‘absurdly low prices that are less than $20 million for airplanes that cost $33 million to produce.’
Bombardier hit back saying its operations support thousands of US jobs.
"Bombardier is deeply invested in the US economy, with about 7,000 employees in dozens of facilities in both rail and aerospace across 17 states. Bombardier spends about $3 billion annually with US suppliers across 48 states, generating US jobs."
Canada also said it will mount ‘a vigorous defense’ of the allegations.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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