I guess you can forget about the C-series: http://www.seattletimes.com/business...ardier-boeing/

219% tariff.

I believe it's just a preliminary hearing though.

 

No way this was ever going anywhere but the E2. Can you imagine the CF it would be for this company to organize that? They cant even turn a 321 properly yet.

 

But I wonder if this will put any future deals between JB and Embraer under the microscope. I'll bet Embraer gets subsidies from the Brazilians, which would be no bueno either, considering that's the reason for the tariff on the C's.


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Will Irish aircraft leasing companies be impacted?

 

I assume so:

Bombardier hit by tariff in Boeing row - BBC News

 

Or will that just impact US airlines buying the airplanes outright?

 

I am not sure to be honest. But I was thinking along the same lines as you. Could Delta create a leasing company based outside the US that took delivery of the CSeries and then lease it to DL for $1/yr?

 

How could the US impose a tariff on a non-US buyer? Doubtful. Boeing is clearly scared of the potential of the CSeries vs their geriatric 737s....

 

So what are the odds that Boeing is able to prove financial harm caused by the sale of the CSeries to the trade court?

As far as I understand, Boeing has won the first round, but if the CSeries sales can't be proven to have harmed Boeing's sales of the 737, then, while the initial determination that Bombardier dumped planes at an illegally low price may hold true, the tariff would not apply.

How partisan is the US International Trade Commission?

If Boeing can't win the second round, it appears that the claim would not be valid, the tariff not levied, and Boeing only walks away with a pyrrhic victory.

To add another twist to this story, UTC is a major supplier for the CSeries. UTC is also a major supplier for Boeing and numerous other aerospace manufacturers. UTC is currently trying to buy or merge with Rockwell Collins to become a giant in the world of supply chains for aircraft manufacturing. That gives them a lot of influence over pricing.

Boeing put the screws to UTC and other contractors in their supply chain during the last round of cost cutting recently.

Boeing has stated they want to cut more costs in their supply chain. A weaker, smaller UTC will be easier for Boeing to negotiate against. Hurting Bombardier helps achieve that end.

I'll take the tinfoil hat off now and just leave a number, $17,000,000. That's how much money Boeing spent on lobbying government in 2016.

 

So Boeing is objecting to Bombardier receiving government subsidies and potentially harming a major US company, i.e. them. But it supports the ME3 while their own government subsidization hurts major US businesses? A wee bit ironic no?