Montreal - Delta Air Lines wants 75 CS100 ordered from Bombardier to be assembled in Alabama rather than in Canada as a result of the unfair competition claim of Boeing.
Greg May, the Senior VP for Supply Chain Management at the US company confirmed on December 18 the request from the Canadian aircraft manufacturer to assemble the CS100s at Airbus' Mobile FAL (Final Assembly Line) in Alabama as promised by Airbus when the European manufacturer took control of the CSeries program last October.
The contract for 75 CS100 was concluded in April 2016, a contract valued at $ 5.6 billion at list price. The first deliveries were planned in 2018, but if the aircraft to be assembled in the US, they won't be available for delivery before two years in the best case scenario.
We are ready to wait as long as it takes,said Greg May.
If Airbus doesn't have a problem with the competition authorities, a FAL for the CSeries will be built in Mobile, next to that producing A320 Family devices. Bombardier recalled on Monday, December 18 that this new assembly line in Alabama requires an investment of about $ 300 million, which will add 400 to 500 direct jobs as well as thousands of others indirectly in the United States.
The ITC's final decision on CSeries is expected in January or February 2018.
We are very pleased with the evidence presented today by Bombardier, Delta, and others that Boeing's complaint is an unfounded attack on airlines, the traveling public, and the US aviation industry. This has been true since the beginning of the investigation, and recent developments make it even clearer. More importantly, the C Series partnership between Bombardier and Airbus involves the construction of a new manufacturing facility in Alabama, United States. These facilities will provide US airlines a US-built aircraft, eliminating any possibility of Boeing's being harmed by imports,said Bombardier on December 18.
Commission also heard clear evidence that CSeries aircraft threaten Boeing's business in no way, who even did not participate in the race to sell aircraft to Delta since it no longer produces the aircraft of the desired size. In addition, Boeing has acknowledged that it has exceeded its production capacity of 737 with more than 4,300 aircraft in its order book,concluded the Canadian manufacturer.
We had taken action to enforce US trade legislation, which reflects the widely accepted rules of international trade adopted by most WTO members, including Canada. Today's hearing was just another step in this process, as the ITC took into account a great deal of evidence that highlighted the harm done by Bombardier's illicit actions to the US industry,said Boeing on the same day.
These investigations have already established without a doubt that Bombardier has received billions of dollars of illegal government subsidies to support its CSeries program, which wouldn't even exist at this stage without these subsidies. The investigations also revealed that Bombardier used these government funds to sell aircraft in the US market at ridiculously low pricesthe US manufacturer added.
The statement concludes that Boeing is pleased with the competition, but it must be a competition on an equal platform. Bombardier can sell its equipment anywhere in the world, as long as it complies with the law and complies with the commercial rules accepted worldwide.