Global InformationCSeries dumping petition by Boeing information
On 28 April 2016, Bombardier Aerospace, a division of Bombardier Inc., recorded a firm order from Delta Air Lines for 75 CSeries CS100s plus 50 options. On 27 April 2017, The Boeing Company filed a petition for dumping them at $19.6m each, below their $33.2m production cost. On the same day, both Bombardier and the government of Canada rejected Boeing's claim, vowing to mount a "vigorous defence".[1]
On 9 June 2017, the US International Trade Commission (USITC) found that the US industry could be threatened and should be protected. On 26 September, after lobbying by Boeing, the US Department of Commerce (DoC) alleged subsidies of 220% and intended to collect deposits accordingly, plus a preliminary 80% anti-dumping duty, resulting in a duty of 300%. The DoC announced its final ruling, a total duty of 292%, on 20 December, hailing it as an affirmation of the "America First" policy.[2]
In October 2017, with financial issues already mounting, Bombardier was indirectly forced by the US government tariffs to relinquish 50.01% of its stake in the CSeries program to Airbus for a symbolic CAD$1,[3][4] and would produce CSeries aircraft in the United States.[5] The aircraft family was also subsequently renamed the Airbus A220.
On 10 January 2018, Canada formally filed a complaint at the World Trade Organization (WTO) against the United States over the affair. On 26 January, the four USITC commissioners unanimously reversed their earlier claims, finding that US industry is no longer threatened and no duty orders will be issued, overturning the imposed duties. The Commission public report was made available by February 2018. On March 22, Boeing declined to appeal the ruling. In 2020, amid mounting debts, Bombardier sold its remaining A220 stake to Airbus and exited the commercial plane business.[6] With this deal, Airbus's stake in the A220 programme increased from 50.01% to 75%, while the Quebec government's holding rose to 25%, although it will not be injecting any new money into the program.[7]
- ^ Ross Marowitts (27 April 2017). "Bombardier rejects Boeing claim CSeries was dumped into the U.S. at below cost". cbc.ca. The Canadian Press. Retrieved 9 January 2024.
- ^ Ashley Nunes (7 December 2021). "Analysis | Why are Boeing and the U.S. in a trade war with Canada and the U.K.?". Washington Post. Retrieved 9 January 2024.
- ^ Allison Lampert; Rama Venkat Raman (9 June 2018). "Airbus nails down Bombardier CSeries deal in boost to jet". reuters.com. Reuters. Retrieved 9 January 2024.
Bombardier agreed in October to sell Airbus a 50.01 percent stake in its flagship commercial jet for a token fee of one Canadian dollar,
- ^ "Airbus and Bombardier in family ties with C Series deal". Airline Suppliers. 11 June 2018.
Following the agreement, Airbus will acquire 50.01% of the program for a token one canadian dollar. Bombardier should keep a stake of about 31%, while the part of the government from Quebec will be reduced to about 19%.
- ^ "Airbus takes control of Bombardier CSeries in rebuff to U.S. threat". Reuters. 2017-10-16. Retrieved 2023-10-27.
- ^ "Bombardier exits the commercial plane business, sells remaining A220 stake to Airbus". cbc.ca. CBC News. 13 February 2020. Retrieved 9 January 2024.
- ^ Kar-Gupta, Sudip (13 February 2020). "Airbus, Quebec to buy out Bombardier's A220 stake". reuters.com. Reuters. Retrieved 9 January 2024.