US Dept of Commerce slaps 220% tax on Bombardier c series
The real irony is, of course, that a while back United was on the verge of placing a rather large order for C-Series aircraft. Enter Boeing, with an offer on 737-700s at a much cheaper price than BBD could offer on the C-100. Rumours has it, the price was around 17M USD each for the Renton tractor, vs. 20+ for the Qomposite Quebecois. And you get 25% more seats in the bargain; what's not to like?
However, that's not price dumping according to US regulations, since it's a transaction between two US based companies. The logic is baffling, but there you go - Boeing can happily dump 737s at ridiculous prices, as long as it's inside the US, but if BBD sells below cost in the US, well, here's a 220%* tariff on all your products sold henceforth, Sir.
*219,63, to be exact, one apologises for the exaggeration.
However, that's not price dumping according to US regulations, since it's a transaction between two US based companies. The logic is baffling, but there you go - Boeing can happily dump 737s at ridiculous prices, as long as it's inside the US, but if BBD sells below cost in the US, well, here's a 220%* tariff on all your products sold henceforth, Sir.
*219,63, to be exact, one apologises for the exaggeration.
Never mind, once all Liam Fox's flights around the world start to pay dividends, collecting on the promises to discuss later that we might be able to have new trade talks once we're outside the EU, real world problems like this will recede into the long grass.
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Rumours has it, the price was around 17M USD each for the Renton tractor,
Enter RYR stage left and snaps up 200 or so for their new lower demand routes in.............
Enter RYR stage left and snaps up 200 or so for their new lower demand routes in.............
The real irony is, of course, that a while back United was on the verge of placing a rather large order for C-Series aircraft. Enter Boeing, with an offer on 737-700s at a much cheaper price than BBD could offer on the C-100. Rumours has it, the price was around 17M USD each for the Renton tractor, vs. 20+ for the Qomposite Quebecois. And you get 25% more seats in the bargain; what's not to like?
This ridiculous action will give the C Series enormous credibility in the airline market! It could turn the C Series into a huge success in the long term!
Why don't we just remind the US that One of Europes biggest airlines Ryanair is 100% Boeing and as we are part of the EU...... oh wait a minute.....
Last edited by DroneDog; 27th Sep 2017 at 14:51.
Apart from the fact they actually did. By offering used Embraer E-190s and MD-95s (nee, Boeing 717s). No, I **** you not.
The chief aircraft buyer at Delta made it quite clear in a testimony, Boeing has absolutely nothing on offer in the 100-110 seat category and that the 737-700s, of which Delta has a grand total of 10, offered (and taken, order since changed to -800s, but thanks for the cheap aircraft Boeing!) are uneconomical except on a handful of performance limited services.
The chief aircraft buyer at Delta made it quite clear in a testimony, Boeing has absolutely nothing on offer in the 100-110 seat category and that the 737-700s, of which Delta has a grand total of 10, offered (and taken, order since changed to -800s, but thanks for the cheap aircraft Boeing!) are uneconomical except on a handful of performance limited services.
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This is all just about the US throwing the toys out of the pram and "Chairman Trump, Herr Trump" flexing his muscles..
https://www.bostonglobe.com/opinion/...N8L/story.html
More like:
https://www.youtube.com/watch?v=WITlM2pY_a4
https://www.bostonglobe.com/opinion/...N8L/story.html
More like:
https://www.youtube.com/watch?v=WITlM2pY_a4
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While the F/A-18E/F order can be cancelled (as Trudeau has threatened), it's small beans compared with the massive orders on the books for Boeing airliners by Air Canada, which is well on the way to replacing all of its remaining Airbus and Embraer fleet with with Boeings and some Bombardier CS models. This the government is unlikely to be able to affect, unless it slaps a countervailing tariff on Boeing (probably not allowed under the WTO and NAFTA agreements). Other Canadian operators are largely Boeing customers, too, so the room for manoeuver is small.
This appears to be a holding action by Boeing to prevent sales of the technically superior C-series from taking off while at a crucial stage in its marketing, in the hope that it will not reach a critical mass for long-term success and further development by Bombardier of models which then would compete with Boeing. In the long run, after developing the 797 and exhausting the potential of the 737, Boeing will have to address the smaller narrow-body market, which in the meantime could be strongly occupied by Bombardier and Embraer.
This appears to be a holding action by Boeing to prevent sales of the technically superior C-series from taking off while at a crucial stage in its marketing, in the hope that it will not reach a critical mass for long-term success and further development by Bombardier of models which then would compete with Boeing. In the long run, after developing the 797 and exhausting the potential of the 737, Boeing will have to address the smaller narrow-body market, which in the meantime could be strongly occupied by Bombardier and Embraer.
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Sept 27 (Reuters) - Delta Air Lines Chief Executive Ed Bastian said on Wednesday that he does not expect the U.S. government to impose stiff duties on jets made by Bombardier .
Boeing’s complaint that the Canadian company is doing business unfairly was “absurd”, he said at the Skift Global forum in New York.
The dispute relates to C-series jets produced by Bombardier for Delta.
“How this is somehow a U.S. trade dispute (is) bizarre,” Bastian said, adding Boeing’s claims were the “ultimate hypocrisy.” (Reporting by Alana Wise in New York, additional reporting by Ankit Ajmera in Bengaluru; Editing by Savio D‘Souza)
Boeing’s complaint that the Canadian company is doing business unfairly was “absurd”, he said at the Skift Global forum in New York.
The dispute relates to C-series jets produced by Bombardier for Delta.
“How this is somehow a U.S. trade dispute (is) bizarre,” Bastian said, adding Boeing’s claims were the “ultimate hypocrisy.” (Reporting by Alana Wise in New York, additional reporting by Ankit Ajmera in Bengaluru; Editing by Savio D‘Souza)
Prime Minster Theresa May said she was "bitterly disappointed" over the US Department of Commerce proposal to impose the tax. She said the UK would work with Bombardier to protect "vital" jobs. The UK government and trade unions fear the imposition of tariffs could make the Canadian firm question whether to remain in Northern Ireland, where it employs 4,100 of its 28,000-strong workforce.
Sir Michael said during a visit to Belfast that "Boeing stands to gain from British defence spending" but that "this kind of behaviour could jeopardise our future relationship" with the firm.
"We don't want to do that. Boeing is an important investor in the United Kingdom; an important employer in the United Kingdom.
"But we would prefer this kind of dispute to be settled on a negotiated basis and we will be redoubling our efforts with the Canadian government to bring about a negotiated settlement."
"We don't want to do that. Boeing is an important investor in the United Kingdom; an important employer in the United Kingdom.
"But we would prefer this kind of dispute to be settled on a negotiated basis and we will be redoubling our efforts with the Canadian government to bring about a negotiated settlement."
(As to tariff wars, they seem to be lose-lose propositions in a great many cases).
Thread Starter
We don't want to do that. Boeing is an important investor in the United Kingdom; an important employer in the United Kingdom.
WHBM - may I suggest a visit to Wikipedia? It says
More at https://en.wikipedia.org/wiki/Boeing_UK
Boeing UK is the UK subsidiary of Boeing, an American multinational corporation that designs, manufactures, and sells airplanes, rotorcraft, rockets and satellites.
The company in the UK is approaching 2,000 employees at a number of sites across the United Kingdom including London, Bristol, Fleet, Frimley, Farnborough, Gosport, Yeovil, and Manchester
The company in the UK is approaching 2,000 employees at a number of sites across the United Kingdom including London, Bristol, Fleet, Frimley, Farnborough, Gosport, Yeovil, and Manchester
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I admit I do not know enough about these issues, legally, but often we hear of folks appealing to the WTO about unfair practices. These are concerning international trade deals. If that is correct would Canada not have a route for repost?
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What a move Donald! Milton Friedman/Ronald Reagan must be turning in their graves...
Wonder if the C series will hit Boeing hard eventually...since the legacy and profitable 737 series (which I love BTW) has been loosing ground to the A320...
Wonder if the C series will hit Boeing hard eventually...since the legacy and profitable 737 series (which I love BTW) has been loosing ground to the A320...