David Puddy

Which makes the Republic order a great deal for someone out there... Again, we are talking different markets - most of the 737 MAX airplane orders are for the 800, 900 and the extended 10 MAX. The CS100 and CS300 are for the smaller capacity markets and are already flying. Korean is about to start service with their first CS300 shortly. The 700 MAX has been ordered by a few airlines (including SWA) and it is largely considered a DUD (in terms of orders) compared to the higher-capacity 800 and 900 MAX models. The airplane is not a paper airplane, and Boeing is clearly concerned about Delta getting the CS100 into service and showing others it is the real deal. Once Delta starts to operated the CS100 domestically, the rest of the US airlines will monitor it closely (JB is rumored to be very interested in it as an E190 replacement).

Big point: Boeing regrets that it didn't stifle Airbus back in the 1980s when it only had the A300 and A310 (before the wildly popular A320) - so, it is trying to be proactive this time. But, as others have mentioned, the claim of financial harm to Boeing has ZERO merit.

TED74

Most or all of us understand this and agree. So how did this week's finding and preliminary tariff of 220% happen? Logic and fairness seem to go out the window when the lawyers and politicians get involved... who is to say there won't still be a prohibitive tariff in place come February?

I'm eager to see what Delta does WRT CS in the approaching AE. Surely they've had a contingency plan in place for a finding like this week's... right?

David Puddy

Boeing originally sought a lower tariff of 160% - so, I assume they too were surprised. And having this come to fruition at the proposed tariff will likely result in a trade war - the Canadian PM Trudeau and British PM May are pi$$ed and that probably won't help Boeing's marketing efforts.

Ed Bastian is still positive about the CS100 and he even stated in this article at the bottom:

https://www.google.com/amp/s/www.cnbc.com/amp/2017/09/27/deltas-ceo-calls-u-s-tariff-ruling-on-bombardier-jets-absurd.html

the CS100 would be "our best domestic aircraft" which is a clear dig at Boeing as well.

RamenNoodles

Additional reading concerning government subsidies: $8.7B in tax breaks to Boeing vs $1B investment to BBD from Quebec.

https://www.google.com/amp/www.latimes.com/business/hiltzik/la-fi-hiltzik-boeing-washington-20170503-story,amp.html

CBreezy

From the article I read, this judgement was expected because in a general sense, this met the definition of dumping. What the next court has to decide is whether this dumping has caused any harm to Boeing.

David Puddy

Dumping with no competing product? Makes ZERO sense.

RockyBoy

Which one would think is an easy case. How can it cause harm to Boeing if they don't have a similar product. The 737-700 is clearly not a competing product. It's like saying that since I bought a fleet of Ford Econoline vans to haul crews from the airport to hotels that Peterbilt was harmed. If it really is harmful, why isn't Airbus crying about the dumping of the C-series as well....we could have ordered A-318's right?

Mesabah

The question then would be, if Bombardier has cornered the market, why are they selling massively below market value? At the minimum, the judgement will be that the CS100 could be sold to Delta, but the CS300, and possible future CS500, would carry a ~200% tariff.



If I were Delta, I would kill the Cseries, take Compass's E175's that are already a scope issue, send those airplanes to the mainline. Then, I would buy a few E195E2s for a few select markets, allow Skywest to order additional 76 seat E175s. Then, I would place a massive order for A320neos to replace the MD's, and the CS300. This is what makes the most economic sense.

tunes

Good thing you aren’t in charge


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forgot to bid

But that's a problem. They cannot afford to have any more good deals before the whole thing collapses. They have bills to pay. They need real orders asap.