Out of the Box Thought....
 

We all know what’s going on with the CS100 and the tariff. According to the complaint and initial DofC ruling the major reason it was imposed is because of a major subsidy to Bombardier provided by the Canadian government.

Here’s my thought, Why doesn’t (Delta and all major US airlines) file a complaint with DofC against the ME3? They’re getting a lot more money from their respective governments in subsidies than Bombardier. The tariff could be on each seat provided by the ME3 that lands or departs from a US city......

Just a thought...

Denny

That is brilliant!!

Trump loves Boeing
ME3 love Boeing
Delta doesn't love Boeing
Who do yo think would win this?

Sadly this is all true.

The Boeing lobby has won every battle so far. To boot, more than a couple airlines support the ME3. Follow the lobbying power ($). I'm still reaching out to my congressmen and senators, but no headway yet.

"Bombardier’s case rests on the fact the government of Quebec’s aid package was not a subsidy -- but rather a direct investment in the C Series program. In exchange for a $1 billion cash infusion, the Canadian province received a 49.5 percent stake in the C Series."

https://www.bloomberg.com/news/artic...er-boeing-spat

So, not like this?

https://www.bloomberg.com/news/artic...by-illegal-aid

A 220% tariff slapped onto the price of every ME3 seat would be awesome!

And what about Boeing's subsidies via the Ex/Im Bank?

Yeah and virtually any European airline is receiving subsidies from their respective governments. I think we should sue Air France who's been bailed out by its government (French gov still owns a stake in the company, more than Delta) -- or Alitalia whose mismanagement has cost 5 billion euros to Italian taxpayers. Lufthansa and British have both been bailed out as well (loans not refunded). Heck even low-cost Ryan Air receives 30 million euros every year in aid and rebates in France.

Indy, this used to be a considerable aid that helped Boeing sell aircraft, but with the stability and profitability of the industry, the spread between regular financing and Export Import Bank rates has converged.

I haven't looked at the spread in a while, but the way you do this is to look at the Ex/Im Bank rate compared to EETC rates for the carrier you are looking at. They used to be as much as 7% different (2% v. 9%) depending on the airline doing the buying, and the tranch level.

Now I think they are much closer. Consider the recent Air France bond offering at (I think) 3.75%. They could use that money to buy aircraft v. Ex/Im Bank money. And I don't think Air France is considered investment grade by any measure.

Years ago ALPA attempted to get FedEx removed from the RLA. Fred Smith has a clause in his purchase contracts that lets him out of Boeing orders if FedEx is removed from the RLA. He called Boeing and the whole concept was squashed before it was out of committee. Boeing has deep deep pockets and the buy great representation at the congressional level. FedEx does not belong being under the RLA.