Boeing alleges that Bombardier sold Delta Air Lines 75 CS100s at $19.6m, amounting to price dumping because of Canadian government “subsidies” received in a bailout. Boeing told the US International Trade Commission in a May 24 closing brief that Bombardier, in essence, will become the next Airbus if the ITC doesn’t nothing to penalize Bombardier by slapping 79% tariffs on the Delta aircraft.
As a result, Bombardier stands to drive Boeing out of business and with it, the US aerospace industry.
There are a couple of key flaws in this argument.
Bombardier missed its greatest opportunity to develop the CS500 as a competitive airplane to the 737 (and the Airbus A320).
Boeing claims the CS500 will kill the 737-800. But this model is slated to go out of production by 2019, long before the CS500 could enter service.
Boeing’s argument assumes the 737 MAX is a long-term airplane. In reality, the New Small Airplane is just around the corner, so-to-speak—which should surpass the economics of the CS500.