2/26/2023 0 Comments Bombardier newsThe fact that Boeing also receives loads of government money isn’t a legal argument in this case, noted Goldman.įrom a legal standpoint, however, Canada can and is challenging the notion that the money Bombardier received from the Canadian government really fits the WTO definition of a subsidy that would justify import duties, according to Goldman. (Boeing didn’t compete for the Delta contract Bombardier won but argues that the CSeries represents competition for its flagship 737 narrowbody aircraft.) But a company as old and established as Bombardier should have been able to handle that without government handouts, argues Mitchell. It has sunk about $6 billion in the CSeries so far. Sure, developing the CSeries, a whole new line of mid-size commercial aircraft was a big bet for Bombardier, which has until recently only dabbled in the regional jet market. “They left themselves open to that by needing financial help,” Mitchell said, speaking about Bombardier. READ MORE: Bombardier: A step-by-step guide to the trade dispute Now, Washington has slapped a preliminary 219 per cent import duty on Bombardier that’s meant to counteract the effect of those subsidies and help level the playing field. government alleging that Canada’s airplane manufacturer was encroaching on its home turf by selling CSeries aircraft on the cheap (to Delta Air Lines in the specific case) thanks to government subsidies. Sure enough, not too long afterwards, Boeing filed a complaint with the U.S. When the Quebec government and Ottawa stepped in to shore up a struggling Bombardier with cash for its prized CSeries aircraft, danger was lurking, according to William Mitchell, professor of strategic management at the University of Toronto’s Rotman School of Management.
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