Delta will not pay taxes on Bombardier CS100
Atlanta - Delta Airlines is confident in the delivery of the 75 CS100 ordered from Bombardier, without having to pay the US government's 300% tax.
Most analysts estimate that these exorbitant customs duties are unlikely to be ever enforced, with the Department of Commerce continuing its investigation until the end of December.
While delivering quarterly results, Ed Bastian, the CEO of the US carrier, said on October 11, 2017, that the delivery of the first Canadian single-aisle aircraft will be carried out in 2018 as it was planned: "There may be delays, but I expect that we will not have to pay the recent tax put by the US government," he said.
As requested by Boeing since January, the US Department of Commerce decided at the end of September to impose 219.63% preliminary customs tariffs on Bombardier CSeries and raised them to 300%. Boeing claims Bombardier sold the aircraft below their cost of production and breached international competition rules. American aircraft manufacturer says the CSeries are competing with its 737-700 and 737 MAX 7.
Delta Air Lines, repeatedly says that Boeing had not proposed a new aircraft during the tender won by Bombardier, only second-hand Embraer 190. The model proposed by Embraer was the 717-200, a model that has not been produced since 2006 according to Ed Bastian.
Most analysts estimate that these exorbitant customs duties are unlikely to be ever enforced, with the Department of Commerce continuing its investigation until the end of December and the ultimate decision of the International Trade Commission (ITC) not expected until next February. The WTO will undoubtedly be seized regardless of the decision. Pratt & Whitney, who manufactures the CSeries engines, remains cautiously out of the debate.
Boeing announced yesterday that it is launching an intensive advertising campaign in Canada to remind the country of its significant presence (560 subcontractors and 17,500 jobs) and its economic impact valued at 4 billion Canadian dollars, which refers to the 14% of the aerospace industry in Canada.