Sunday , June 13 2021

Boeing & # 39; s trading complex with Canada ends with Airbus, Alabama as the winner

This week, a new new $ 300 million Airplet jetliner assembly site, broke into Mobile, Alabama and is the culmination of a Boeing trading conflict that ended in Canada two years ago.

The discussion that was filed with a trade complaint by Boeing in April 2017 called for Canadian government to use subsidies to get its company in the United States.

Here's how we're here

In 2004, Canada Bombardier, the creator of private jet and small regional airliner, was determined to be the time to make the leap into big league. It was time to build an advanced bubble composition jet liner to counter the Airbus-Boeing duopoly. In particular, the Canadian aircraft, called the Bombardier C Series, would check against the smaller variants of the Cash Cow Airbus A320 family and Boeing 737.

For the coming decade, the story to overcome the Bombardier C Series program is one of cost, development increase, and slow sales. Bombardier reports a $ 4.9 billion loss in the third year of 2015, including a $ 4.4 billion charge that is largely associated with the C Series program.

In & # 39; the time of & # 39; An announcement, Bombardier director Alain Bellemare announced that his company was "overwhelmed" by the multiple development program that was "on its plate".

A financially weak bombardier came in from & # 39; a province of Quebec a $ 1 billion return. In & # 39; one's back, the provincial stamp press took a 49.5% stake in & # 39; e C Series.

Although, the & # 39; s first C Series 2013 prototype & # 39; The air was taken up and critically educated for his performances, Bombardier still got to find a large airline that did not want to buy in bulk. Especially an important US airline.


In early 2016, Bombardier and Boeing entered & # 39; a header in & # 39; e competition for orders of United Airlines. Boeing won. The United States ordered 40 Boeing 737-700s in January of that year and an extra 25 in March. One Indian-Analyst told Business Insider that Boeing gave a 70% discount on one March board as a means to exclude Bombardier.

Bombardier's hostility would eventually end in April 2016 when it was long sought after; a rating for 75 C Series jets from Delta Air Lines.

It is the event that has been saved when saving the C Series program and it is the deal that & # 39; t Boeing put on a warpath.

Boeing & # 39; s trade conflict

In April 2017, Boeing filed a complaint with the US Commerce Department and the US International Commission on Command, stating that Delta C Series's order was only capable of providing low-priced, measured prices from Canada.

The US International Trade Commission reduced and applied in September of that year a 219.63% tariff. A week later, the commission set a different 79.82% fee.

Bombardier and Delta totaled 299.45% on each Canadian-built C Series aircraft exported to the US.

Join the first Airbus A220 previously known as the C Series.

Bombardier replied in a statement, calling the ruler "absurd and separate from" reality. The production of Montreal's aircraft also boils on Boeing, which makes it the mainstay of maintaining & # 39; the United States trade rules to exchange the competition.

Bombardier and Delta both argues that Boeing's company was not likely to be able to trade, because Boeing does not have a product in its training capacity about the C Series.

"Boeing did not offer a US product because the production of their only aircraft in this large frame canceled – the 717 – more than 10 years ago," said Delta in a statement at no time.

According to the Atlanta-based aviary, Boeing's only suggested alternative to the CS100 was the bidding on a part of the second-hand Brazilian Embraer E190 regional jets.

In order to lose the key order in the C Series history, Bombardier has Boeing's biggest enemy, Airbus.

read more: Airbus CEO shows why the company is being protected in the economic downturn.

Less than one month after the charge was announced, Bombardier received 50.01% of its award-winning program on Airbus with a chance to escape from a European aviation crisis.

As part of one's deal, Airbus announces that the C Series will also be made at its assembly in Mobile, Alabama.

Fortunately for Bombardier, the US International Trade Commission succeeded in proposing the proposed tariff in January 2018 and ending the conflict.

The Alabama factory

From the summer of 2018, the Bombardier C Series was no longer. It was as Airbus A220 rebranded and sufficiently in Airbus's product.

Airbus and Bombardier directors together with the Governor of Alabama break the ground for the new Assembly Assembly A220.

While many saw the proposal to build the Canadian jet in Alabama as a target for trading regulators. Airbus, as it stays, was dead seriously.

Shortly after January 2019, as the director of Airbus and Bombardier, with the Governor Ivey of Alabama, gathered on a seventh Wednesday to make the ground for the A220 final international in Mobile.

The $ 300 million facilities will set plans for the A220's North American customers such as Delta, JetBlue. The first delivery of our mobile factory is expected to be in 2020.

It is also the latest chapter in a long multinational story that is the Bombardier C Series.

Stay tuned for more.

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