Moderators: richierich, ua900, PanAm_DC10, hOMSaR
WaywardMemphian wrote:
Bombardier gets the money to get sound financials back. They can then get back the RJ and turbo prop business, Quebec gets it's part back with money or the promise of maintaining a product line there so many decades. The US is happy due to the content thats made here and the possibility that the some 300s and the 500s will be produced here. The UK is happy because Ireland will still make parts.
In the 1980s, the Government of Canada privatized DHC and in 1986 sold the aircraft company to then Seattle-based Boeing. The government claimed to have guarantees from Boeing not to discontinue any product lines, but shortly thereafter, Boeing discontinued both the successful Twin Otter and the Dash 7. The jigs and specialised equipment for their manufacture were destroyed.
LAXintl wrote:Decision is out.
BREAKING: U.S. Dept of Commerce backs @Boeing in dispute with @Bombardier.
Imposes tariffs on sales of CSeries jet into U.S. market.
Commerce Dept. calculated a preliminary subsidy rate of 219.63 percent for Bombardier
https://twitter.com/dominicgates/status ... 8106497026
leghorn wrote:If I were Embraer(or any manufacturer based in a non-world power Country) I'd be very worried. The U.S. Administration have shown their willingness to tear up any trade accord to benefit U.S. companies.
They were talking about throwing out NAFTA so that cars would be manufactured in the U.S. rather than Mexico and Mexico was preferable to Brazil as there weren't trade barriers for car building.
Planesmart wrote:incitatus wrote:Now, if the C series is really awesome, why is it being sold at super low prices?
Because Boeing was offering the 737 at super low prices.
LAXintl wrote:
LockheedBBD wrote:leghorn wrote:If I were Embraer(or any manufacturer based in a non-world power Country) I'd be very worried. The U.S. Administration have shown their willingness to tear up any trade accord to benefit U.S. companies.
They were talking about throwing out NAFTA so that cars would be manufactured in the U.S. rather than Mexico and Mexico was preferable to Brazil as there weren't trade barriers for car building.
Boeing nor the US will complain about Embraer, Embraer is sticking to their niche, away from the likes of Boeing/Airbus. I don't believe Embraer has been involved in any dumping, and their patience has paid off. Now that BBD has been effectively wiped out of the US market, Embraer can call the shots and charge a premium.
Maxvokia wrote:So is the duty based on the list price or the price DL got?
trex8 wrote:IF BBD started an assembly line in the US how does that affect the duty?
LAXintl wrote:Decision is out.
BREAKING: U.S. Dept of Commerce backs @Boeing in dispute with @Bombardier.
Imposes tariffs on sales of CSeries jet into U.S. market.
Commerce Dept. calculated a preliminary subsidy rate of 219.63 percent for Bombardier
https://twitter.com/dominicgates/status ... 8106497026
leghorn wrote:trex8 wrote:IF BBD started an assembly line in the US how does that affect the duty?
Look at the US dept of commerce website news page. They don't just want production lines in the U.S., they want 80% local content.
Trump and his advisors believe as much in Free Trade as they do in Climate Change and treating women respectfully.
trex8 wrote:leghorn wrote:trex8 wrote:IF BBD started an assembly line in the US how does that affect the duty?
Look at the US dept of commerce website news page. They don't just want production lines in the U.S., they want 80% local content.
Trump and his advisors believe as much in Free Trade as they do in Climate Change and treating women respectfully.
Hmmm 80% local content? Whats the duty going to be on 787s and 777Xs then??
trex8 wrote:leghorn wrote:trex8 wrote:IF BBD started an assembly line in the US how does that affect the duty?
Look at the US dept of commerce website news page. They don't just want production lines in the U.S., they want 80% local content.
Trump and his advisors believe as much in Free Trade as they do in Climate Change and treating women respectfully.
Hmmm 80% local content? Whats the duty going to be on 787s and 777Xs then??
LockheedBBD wrote:trex8 wrote:leghorn wrote:Look at the US dept of commerce website news page. They don't just want production lines in the U.S., they want 80% local content.
Trump and his advisors believe as much in Free Trade as they do in Climate Change and treating women respectfully.
Hmmm 80% local content? Whats the duty going to be on 787s and 777Xs then??
Maybe BBD should move their head office and incorporate in the US?
zckls04 wrote:So this means a $19.6m per unit sale to Delta would actually cost them $63m per unit? Or am I misunderstanding? That seems unjustifiably high given the way aircraft programs are structured cost-wise. Nobody sells for 79% of list, do they?
Also, what does an "interim tariff" mean? Would the Delta sale be subject to this tarriff, or does the February decision regarding injury to Boeing have to be made first?
surfdog75 wrote:Can't imagine Delta ordering a Boeing product in the near future after this. Great news for Airbus. If they invested more in engineers (recently laid off 100) maybe they would have a product that could have competed with the C series. Instead they have a tired apollo era 737 stretched to insanity.
surfdog75 wrote:Can't imagine Delta ordering a Boeing product in the near future after this. Great news for Airbus. If they invested more in engineers (recently laid off a bunch) maybe they would have a product that could have competed with the C series. Instead they have a tired apollo era 737 streatched to insanity.
jagraham wrote:Between the Delta offer and the United order (where Boeing practically gave away 737-700s to keep Cseries out of United) Boeing is on shaky ground dumping wise. Plus, it may be that BBD wrote off any chance of recovering development costs as opposed to pricing below actual production.
multimart wrote:A disgusting decision. I hope the Canadian military rules out any future Boeing purchases ASAP and the gov't leans hard on Air Canada to pass on Boeing products.
Jetsouth wrote:Will the Delta order for CSeries still go ahead with these tariffs?
SteelChair wrote:Delta CEO stated a few months ago that the decision would have no effect upon the order. Not sure how he can make that happen with this ruling, but I'm guessing that there are options
Jetsouth wrote:With a tariff this large, it basically blocks any US airline from buying a foreign-built plane between 100-150 seats. As there are no domestically built planes built specifically for this size range, basically it probably will be uneconomic for any US airlines to buy planes in this size range. The only alternative for this size range is if they buy 737-700's. Although these jets are not as economic as the CS series, US airlines will have no choice but to buy this jet as the alternatives will cost too much due to this duty. Basically Boeing has now opened itself to a large US market requiring jets in the size range of 100-150 seats. No wonder they fought for this duty. The loss of a potential order from the Canadian Government for fighter jets is peanuts to the size of the market they just made for themselves in the States.