Bombardier celebrates trade victory
Bombardier can start shipping C Series jets to Delta Air Lines as scheduled after a surprise ruling by a US trade tribunal that said the proposed imports won't hurt American industry. US companies and workers aren't being harmed by sales of 100- to-150-seat aircraft from Canada, the International Trade Commission said Friday. The panel's ruling blocks a Commerce Department decision last month to impose duties of almost 300pc.
The vote deals a blow to Chicago-based Boeing, which said Bombardier sold the C Series in the US at less than fair value while benefiting from UK government subsidies. The decision also opens the door for Bombardier to add new US customers while potentially easing trade tensions with Canada and the UK, where the company builds wings for the aircraft.
"Today's decision is a victory for innovation, competition, and the rule of law," Montreal-based Bombardier said in a statement. "It is also a victory for U.S. airlines and the U.S. traveling public. The C Series is the most innovative and efficient new aircraft in a generation."
Bombardier surged 16pc to C$3.56 in Toronto after climbing as much as 23pc for the biggest intraday gain in three months. That put the shares at their highest intraday level in three years. Boeing fell less than 1pc to $341.95.
"We are disappointed that the International Trade Commission did not recognize the harm that Boeing has suffered from the billions of dollars in illegal government subsidies that the Department of Commerce found Bombardier received and used to dump aircraft in the U.S. small single-aisle airplane market," Boeing said.
British Prime Minister Theresa said: "I welcome this decision, which is good news for British industry. Bombardier and its innovative workforce play a vital role in the Northern Ireland economy."
Britain's business minister, Greg Clark, said: "This is excellent news for the dedicated workforce in Northern Ireland."