Delta Air Lines refuses to pay proposed tariff hike for Bombardier jets
Delta Air Lines says it has no intention of paying a 300% US tariff on Canadian-built Bombardier CSeries jets.
"We’re not going to be forced to pay tariffs or anything of the ilk," said Delta CEO Ed Bastian duing Wednesday’s earnings call.
The US Commerce Department’s decision to hike the tariffs is ‘nonsensical’ Delta said.
The US tariff decision was sparked by rival plane maker Boeing which accused Bombardier of dumping aircraft in the US market at ‘absurdly low’ prices.
Delta ordered 75 of Bombardier’s CSeries jets, the first major US carrier to do so.
Despite flatly refusing to pay the tariff hike, Delta expects to still take delivery, albeit with possible delays.
"Delta has been supporting Bombardier throughout the process and its CEO, Ed Bastian, reaffirmed the airline’s intention to take possession of its CSeries aircraft. This is the message that we should get out of this," Bombardier spokesman Simon Letendre said.
The trade spat is threatening to spark a far-reaching trade war with both Canada and possibly the UK.
The Canadian government has threatened to cancel a contract with Boeing for military jets.
Bombardier is also a major employer in Northern Ireland and the US decision could jeopardize jobs there.
There has been widespread criticism in the UK of Boeing’s conduct, which was accused of ‘egregious hypocrisy’ by the UK’s opposition Labour Party.
Its trade spokesman Barry Gardiner pulled no punches on Bloomberg TV, calling Boeing a ‘subsidy junkie’ which has been ‘sucking at the milk of corporate welfare in America for far too long."
The proposed hike in duties still needs to be upheld by the US’ International Trade Commission, which is due to review it early next year.
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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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