Bombardier versus Boeing: No matter what the USITC verdicts, the war will continue
Montreal - The war between Bombardier and Boeing is likely to continue regardless of the long-awaited verdict on Friday, January 26, by the United States International Trade Commission (USITC).
In the event of a setback for Boeing, the American giant would come back with another complaint when a new order of C Series announced by a US carrier, argues the Canadian aircraft manufacturer.
If the USITC verdicts in favor of Boeing, trade lawyers expect Bombardier and the Canadian government to appeal the decision to the commercial courts.
The USITC is to decide on Friday afternoon to determine whether the 292.21% countervailing duty and anti-dumping duties claimed by the US Department of Commerce will be applied to the C Series.
Lawrence Herman, a Toronto-based trade lawyer, anticipates a victory for the American aircraft manufacturer and expects the decision to be appealed by Ottawa to the World Trade Organization (WTO) and NAFTA under the Chapter 19.
Bombardier reiterates that the C Series is not a threat to the Boeing 737 family of planes and adds that the US giant deliberately excluded Embraer from its complaint while hiding its negotiations to acquire the Brazilian manufacturer.
Recall that Boeing describes its target market in the US as that of 100 to 150-seat aircraft with a range of 2900 nautical miles or more. Interestingly Embraer explained in a recent statement that the maximum range of the E190-E2 was going to go from 2850 to 2900 nautical miles, because of lower fuel consumption than expected during tests.
The two aircraft manufacturers also have opposing views about the proposed assembly line to be built by Bombardier in Alabama at Airbus Mobile plant as part of its partnership with the European company in the C Series.