Bombardier wins trade dispute

Bombardier ruling due Friday amid spate of US protectionism

Bombardier ruling due Friday amid spate of US protectionism

After stunning the aviation world in October with its deal to bail out Bombardier by acquiring a majority stake in the CSeries, Airbus announced it will build an assembly line in Mobile, Alabama, to build the planes for the US market.

Chicago-based Boeing's decision to file a trade complaint against Bombardier was unusual, as it doesn't make a direct competitor to the 100-to-150 seat aircraft.

Bombardier spokesman Simon Letendre said the company and Airbus will proceed with the construction of the second assembly line for the USA market.

Until the C Series was launched, Bombardier focused more on corporate jets.

Bombardier shares punched up almost 13 per cent to $3.46 in afternoon trading Friday on the Toronto Stock Exchange as some uncertainty lifted for the company.

Shares of Bombardier spiked 17% after news of the ITC's decision broke during the afternoon trading session on Friday. Boeing fell less than 1 per cent to $342.09.

The U.S. aircraft giant vowed to continue its fight against Bombardier's business practices, which it said will "continue to harm American workers and the aerospace industry they support".

The tariffs required approval by the ITC, which determined the sale of the aircraft did not injure the US company. That stirred fears of more restrictive trade measures.

Bloomberg: What the trade case victory means for Bombardier from Alabama NewsCenter on Vimeo.

Bombardier had offered Delta the CS100, which has 110 seats, smaller than any plane Boeing builds.

U.S. Secretary of Commerce Wilbur Ross said through a prepared statement that the finding by the commission shows how robust the system of checks and balances in the country is.

The carrier said it was looking forward to adding the plane to its fleet.

Australia v England: fourth one-day worldwide
England were bundled out for 196 in the 45th over, the score which they would've taken after losing five wickets under 10 runs. To get to 190.we still would have needed something special - something early on or the spinners to catch fire in the middle.

The Atlanta-based airline said it was "pleased by the ITC's ruling rejecting Boeing's anti-competitive attempt to deny US airlines and the USA traveling public access to the state-of-the-art 110-seat CS100 aircraft when Boeing offers no viable alternative".

Three months ago, with the jetliner's access to the USA market in doubt, Bombardier turned to a powerful partner: Airbus SE.

Airbus and Bombardier believe they have a solution to remove the risk of future duties once and for all: a USA -made CSeries.

Delta Air Lines in 2016 agreed to buy at least 75 planes from Bombardier. The ITC ruling calls into question the need for that project, which is estimated to cost $300 million.

Airbus CEO Tom Enders tweeted that the company would "carry on with full steam".

He said details about the Embraer aircraft, which came after the factual record closed at the USITC, "eviscerates the premise of Boeing's case".

But others, like Bloomberg News, speculate that if Bombardier is not facing stiff duties to sell its Canadian-made planes in the United States, then it has less of a reason to partner with Airbus to make the jets in Mobile.

The dispute centered around claims by rival USA firm Boeing that Bombardier received unfair state subsidies from the United Kingdom and Canada - allowing it to sell airliners at below cost prices in the US.

That prompted it to sell a majority stake in its C Series program to Airbus.

Airbus began producing some single-aisle A320-family jets, which compete with Boeing's 737, in Mobile in September 2015, expanding its footprint beyond Europe and China.

But Richard Aboulafia of the Teal Group said he doesn't believe the ruling will unleash a torrent of orders because so few American airlines ordered the C Series even though it has been available to purchase for a decade.

Boeing can appeal to the U.S. Court of International Trade, said Terence Stewart, managing partner at Washington law firm Stewart and Stewart.

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