Boeing Gives Up in Bombardier Case
After the US Trade Commission ruled that Canada's Bombardier could sell its new CSeries jets in the US without high tariffs, the industry waited for Boeing to challenge the ruling. But, a Boeing spokesperson said on Thursday that it won't appeal the case — meaning Bombardier can take a sigh of relief.
Boeing had proposed a 292% tariff on all CSeries aircraft complaining that Bombardier had received heavy subsidies from the Canadian government. The US Commerce Department recommended a five-year tariff on the short- to medium-hall jets. The CS100 seats 110 to 130 people with the larger CS300 holding 130 to 160 people.
Delta had ordered 75 of the CSeries aircraft, namely the smaller CS100 variant. This prompted Boeing to challenge the purchase, and Delta said they wouldn't go through with its order if the tariffs did in fact go into effect. So not only was Delta's order in jeopardy, but also possibly the entire CSeries program itself.
In the ruling issued at the end of January, the US International Trade Commission said that the CS100 jets don't compete with Boeing's smallest 737 MAX 7 aircraft. The ITC added that Boeing had lost no sales or revenue from Delta's purchase of the Bombardier jets.
CNBC reports that the Boeing spokesman declined to elaborate on the decision not to appeal the case.
It's still unclear when Delta will take delivery of the CS100 aircraft, but it's possible it could be years because it's waiting on the construction of the aircraft's assembly line in Mobile, Alabama. Airbus is finalizing a deal to take a majority stake in the CSeries program while Boeing is in talks to form a joint venture with Brazilian aircraft manufacturer Embraer. If you're interested to hear what it's like aboard a CSeries aircraft, check out the review of airBaltic's CS300.