Boeing v Bombardier with Airbus in-between

Below is a very good video on the aircraft market – a duopoly involving Airbus and Boeing. But there is another manufacturer which produces a smaller aircraft that neither Airbus or Boeing produce – the Canadian manufacturer Bombardier. In 2004, the maker of private jets and small regional airliner, decided it was time to make the jump into the big leagues. It was time to build an advanced carbon composite jetliner to compete against the Airbus-Boeing duopoly. More specifically, the Canadian plane, dubbed the Bombardier C Series, would compete against the smaller variants of the cash cow Airbus A320-family and Boeing 737.

In April 2017, Boeing filed a complaint with US Commerce Department and the US International Trade Commission alleging that the Delta Airlines C Series order was only made possible abnormally low prices supported by Canadian government subsidies. The US International Trade Commission agreed and in September of that year recommended a 219.63% tariff. A week later, the Commerce Department added another 79.82% tariff. In total, Bombardier and Delta faced a 299.45% tariff on any Canadian-built C Series plane exported to the US.

Less than one month after the tariff was announced,Bombardier handed 50.01% of its prized airliner program to Airbus  with zero upfront cash investment coming from the European aviation giant. As part of the deal, Airbus announced that the C Series will also be produced at its assembly plant in Mobile, Alabama. Fortunately for Bombardier, the US International Trade Commission struck the down the proposed tariff in January 2018, ending the dispute.

Source: Business Insider Australia

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