Log In | Subscribe | | |

It's "bombs away" for Bombardier, and a slap in the face for Boeing

Publication: 
Editorial Staff
chiefofficersnet

Boeing plays dirty:what it can't win with honest competition it tries to win by alleging dirty tricks by rivals with a view to undermining their access to markets. As a major US employer, when it starts action in the US, it's always assumed that it has home court advantage and because those judging are political appointees that vested and conflicts of interest will almost inevitably mean a decision in favour of Boeing. To the surprise of all, Boeing's action against Bombardier, has been thrown out.

The US International Trade Commission (ITC) is a quango that says of itself that it is "is an independent, quasijudicial Federal agency with broad investigative responsibilities on matters of trade."

It goes on "The agency investigates the effects of dumped and subsidized imports on domestic industries and conducts global safeguard investigations."

Boeing, as it has in other cases, alleged that Bombardier obtained unlawful state aid in several countries that allowed it to underprice, in the US market, its C Series aircraft. The C series operates in a highly competitive single aisle, wide-body, twin jet, mid-range passenger aircraft with cargo variants. It directly competes with the B737 and the Airbus A319 and overlaps with the A320.

Boeing alleged that the support given to the C series was so devastating to its business that the ITC should apply a 300% tariff to sales in the USA. It was fully accepted that while Boeing would not get such a massive penalty rate, it would nevertheless see a significant result in its favour. After all, American First is PoTUS policy and angering Trump usually means being fired and then subjected to vile retribution in the media as it gleefully repeat Trump's more outrageous tweets.

The full terms of the ITC's decision will not be revealed for several days but the outcome is known: there is no evidence of improper funding nor of under-selling the C Series in the USA.

There will be uproar from Boeing's unions, protest from its board, synthetic rage from its lawyers but the fact remains that Boeing has been caught out in its dirty games. And all credit to the ITC and its members for standing up for law and justice in a hostile political climate.

Further Reading:

https://usitc.gov/press_room/a...

https://commercialaircraft.bom...

 


 

hahagotcha