|Bombardier C-Series List price plus 220% premium for US markets?|
It's all because heavily subsidised (in the milspec department!) US company Boeing bleated that Bombardier correctly applied for and used 'unfair state subsidies from the UK and Canada' enabling the firm to employ 4,100 people and this helping Bombardier to win a major order with a US domestic airline.
Stunned managers in Northern Ireland said Boeing was seeking to use US trade laws "to stifle competition."
Julian Bray Aviation expert comments: "Its a natural position to brag about a huge debut order of 125 for the innovative C-series Bombardier passenger jet with a US domestic airline Delta, and although Boeing abandoned the Delta market some years ago; possibly this was the last straw for the US Boeing Company currently nursing an ever decreasing order book, and experiencing supply chain problems for its rival jet and wider bodied unfashionable product lines.
What is not realised is that The US Department of Commerce preliminary ruling against Bombardier will also directly hit some 800 small component manufactures in Northern Ireland, England, Scotland and Wales, in addition to Bombardier Northern Irelands' 4,000 plus workforce where complete wing sections for the new C-series is assembled.
If the ruling is finally confirmed in February, expect widespread cautionary redundancy notices to be issued almost immediately. It is as brutal as that.
Politically Mrs May is unlikely to retaliate, apart from being 'bitterly disappointed' however Defence Minister Michael Fallon is now belatedly suggesting all UK Government contracts with Boeing will have to be reassessed, together with two new contracts.
Mr Corbyn on his last conference and triumphal big final speech day, will probably bury his nose in a book, but don't expect this to be a major consideration at any of the party conferences, but possibly the shape of things to come post brexit!
It has to be said many US subsidiaries now established in the United Kingdom, have taken advantage of development subsidies, but Boeing chose to stay silent..."
Bombardier in a statement just released that the ruling against it was "divorced from the reality about the financing of multibillion dollar aircraft programmes"...
The Belfast firm claimed it had created a "superior aircraft" more efficient and comfortable, however Boeing was trying to prevent "US passengers from realising these benefits, irrespective of the harm that it would cause to the US aerospace industry and the cost to airlines and consumers".
The whole issue will be considered by the US International Trade Commission for a final ruling in February. Watch this space ...
JULIAN BRAY +44(0)1733 345581, Journalist & Broadcaster, Aviation Security & Airline Operations Analyst/expert, ... Travel & Holiday Guru www.aviationcomment.com, ... http://www.freelancedirectory.org/user.php?user=8121 ... www.freelancedirectory.org?name=Julian.Bray.aviation.comment, ... Aviation / Travel / Maritime & Cruise Industries, NUJ, EQUITY, LIVE ISDN LINK, Broadcast ISDN COOBE ++44 (0)1733 345020 ... SKYPE: JULIAN.BRAY.UK e&oe Old faithful NOKIA: 07944 217476