Decision detailed (sort of) in Boeing-Bombardier price dumping case

June 27, 2017, © Leeham Co.: The US International Trade Commission (ITC) last week released its detailed decision to go forward with the Boeing complaint that Bombardier engaged in price dumping when it sold the CS100 to Delta Air Lines.

But for the outsider, the public document isn’t much help. It’s heavily redacted and left out all the good stuff that would allow an outsider to fully understand the reasoning the ITC voted 5-0 to send the case over to the US Commerce Department for further study and potential imposition of tariffs.

Delta Air Lines Bombardier CS100.

Read more

Pontifications: Read the fine print

By Scott Hamilton

June 26, 2017, © Leeham Co.:

Are the widebodies orders seeing some earlier-than-expected recovery?

Airbus and Boeing said they don’t expect to see a renewed demand for wide-bodied aircraft until around 2022, +/-. But Boeing certainly had stronger-than-expected orders at last week’s Paris Air Show.

  • Read the decision in the Boeing-Bombardier complaint. The document is at the end of this column.

The company received orders and commitments for 50 787s and six 777s.

Boeing said it expects new 777 Classic and 777X orders this year.

Read more

Commercialized C-130 beats rivals, crew says

June 18, 2017, © Leeham Co.: The commercial offering of the venerable Lockheed Martin C-130J, the LM-100J, is here at the Paris Air Show, along with its rivals, the Embraer KC-390 and Airbus A400M.

The crew with Lockheed Martin waves off the competition.

Neither competitor can match the LM/C-130, they say.

Read more

Pontifications: Boeing-Bombardier dispute’s big winner: Airbus

By Scott Hamilton

June 12, 2017, (c) Leeham Co.: Boeing won round one Friday in its price-dumping complaint against Bombardier over its sale of the CSeries to Delta Air Lines.

The US International Trade Commission (ITC) voted 5-0 to continue the investigation. It now goes to the US Department of Commerce to determine whether tariffs should be imposed on the deal, and how much. Delta Air Lines would have to pay the tariffs.

Boeing won this round but the big winner is likely to be Airbus.

 

Read more

Boeing gets favorable ruling against Bombardier

June 9, 2017: Boeing received a 5-0 favorable decision from the US International Trade Commission in its complaint that Bombardier dumped its CSeries order with Delta Air Lines at an illegally low price.

The full decision won’t be published until next week.

The press release and some additional information is below.

A Reuters story is here.

A Politico story is here.

Read more

Bombardier optimistic about China

Subscription Required

Introduction

June 5, 2017, © Leeham Co.: Bombardier’s activities in China, where the fuselage for the CSeries is co-produced, have been at a standstill.

None of the Memorandums of Understand or Letters of Intent have been converted to firm

Bombardier Q400.

orders. A recent news report suggested renewed talks between COMAC, China’s commercial aircraft enterprise, and Bombardier over acquisition of the CSeries program

LNC sat down with Fred Cromer, president of Bombardier Commercial Airplanes, at the annual general meeting of IATA to discuss these and other issues.

Summary
  • An update on the COMAC-CSeries relationship.
  • An update on the slow-selling Q400 and CRJ programs.
  • An update on the oft-discussed CS500.
Read more

Bombardier sees no merit to Boeing complaint, says president

Subscription Required

Introduction

June 5, 2017, © Leeham Co.: A decision from the US International Trade Commission

Fred Cromer, president of Bombardier Commercial Airplanes.

(ITC) about the Boeing complaint of alleged Bombardier price dumping in its Delta Air Lines CS100 deal last April is scheduled to be issued June 15.

Bombardier believes the complaint to be without merit.

Fred Cromer, president of Bombardier Commercial Airplanes, explains why in this interview yesterday by LNC at the annual general meeting of the International Air Transport Association (IATA) in Cancun, Mexico.

Read more

Boeing complaint “unprecedented overreach,” says Bombardier

May 30, 2017, © Leeham Co.: “Boeing’s petition…is unprecedented in its overreach. There have been no…imports and no domestic shipments during the period of investigation. There are no lost sales or revenues. Boeing does not even make a product that competes with the aircraft Bombardier offered in the United and Delta competitions….”

So begins Bombardier’s closing brief in the Boeing complaint before the US International Trade Commission (ITC).

Read more

Bombardier’s missed opportunity for the CS500

Subscription Required

Introduction

May 29, 2017, © Leeham Co.: Boeing worries that if left unchecked, Bombardier will launch the often-talked about CS500, a 160-189 passenger concept that would compete directly with Boeing’s 737-800 and MAX 8.

Image via Google.

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.

Summary
  • 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.

Read more

Bombardier “deliberately misleading” in price dumping case, says Boeing

Delta Air Lines CS100. Source: Delta.

May 29, 2017, © Leeham Co.: Boeing minced no words in its closing brief to the US International Trade Commission in its price dumping complaint against Bombardier.

“Bombardier’s intentional obfuscation simply proves that Bombardier has no credible answer to [the] allegations,” Boeing’s lawyers wrote in the second sentence.

Read more