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posted by martyb on Tuesday October 17 2017, @03:55PM   Printer-friendly
from the up-in-the-air dept.

Airbus has partnered with Bombardier to produce C-Series jet planes:

European aerospace firm Airbus is to take a majority stake in Bombardier's C-Series jet project. Bombardier has faced a series of problems over the plane, most recently a trade dispute in the US that imposed a 300% import tariff.

Bombardier's Northern Ireland's director Michael Ryan said the deal was "great news" for the Belfast operation. About 1,000 staff work on the C-Series at a purpose-built factory in Belfast, mostly making the plane's wings.

Airbus and Bombardier's chief executives said the deal - which will see Airbus buy a 50.01% stake - would help to boost sales.

Bombardier was in talks with Chinese firms prior to signing the deal with Airbus.

Airbus and Bombardier are likely to avoid the tariff issue by producing planes at a facility in Mobile, Alabama (archive).

The deal may lead to a closer partnership between Boeing and Embraer:

[In] 2017, the partnerships are transatlantic. Europe and Canada come under a single umbrella with Airbus taking control of the Bombardier's C Series airliner and with an expanding manufacturing footprint in the U.S., Canada and China. That leaves Boeing and Brazil's commercial airplane manufacturer, Embraer, potentially asking "what's next?"

While the tie between Airbus and Bombardier may not bring Embraer and Boeing into full partnership, the pair has been inching closer for years. In 2012, Boeing and Embraer (ERJ) signed a broad agreement to collaborate on a broad range of areas, including airplane "efficiency, safety and productivity." A year later, the two companies signed an agreement to market Embraer's new KC-390 airlifter to the U.S., U.K. and Middle East governments. In 2013, Embraer launched a major overhaul of its regional jets and consciously stopped short of competing with Boeing and Airbus. The U.S. and Brazilian companies collaborated on potentially selling and building F/A-18 Super Hornets together for Brazil, but the deal was felled by the revelations that the National Security Agency had spied on the Brazilian president.

Embraer has been expanding its U.S. manufacturing presence as well, assembling its business jets in Florida.


Original Submission

Related Stories

Trump Administration Finalizes 300% Import Tariff on Bombardier Jets From Canada 36 comments

The Trump administration has imposed a 300% tariff on the import of Bombardier CSeries jet airliners. Airbus and Bombardier recently announced a partnership to build the planes in Mobile, Alabama that would sidestep the tariff:

The Trump administration on Wednesday recommended steep anti-subsidy duties on Bombardier Inc's CSeries jets, setting up the next round of a fierce international trade dispute between the United States and Canada. The U.S. Commerce Department announcement to impose duties of nearly 300 percent stems from a complaint by Boeing Co that Bombardier had been unfairly and illegally subsidized by the Canadian government, allowing the planemaker to dump its newest jetliner in the U.S. market below cost.

"Today's decision validates Boeing's complaints regarding Bombardier's pricing in the United States, pricing that has harmed our workforce and U.S. industry," Boeing said in a statement on the decision, which was generally expected within the aerospace industry.

Delta Air Lines, the second largest U.S. carrier by passenger traffic, has an order for 75 of the 100-to-150 seat CSeries jets. The aircraft starts at $79.5 million, according to list prices, or some $5.9 billion for the total order, but carriers typically receive steep discounts. If imposed, the duties would more than triple the cost of a CSeries aircraft sold in the United States, based on Boeing's assertion that Delta received the planes for $20 million each, well below an estimated cost of $33 million and what Bombardier charges in Canada.

Bombardier criticized the U.S. decision as out of touch, citing the Canadian planemaker's plan to team up with European Airbus to launch assembly of the CSeries from a production line in Mobile, Alabama, making it a domestic product for U.S. buyers.

Also at The Hill and CNBC.

Update: Boeing in talks with Embraer; Brazil backs jetliner alliance


Original Submission

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  • (Score: 5, Insightful) by jimtheowl on Tuesday October 17 2017, @04:22PM (4 children)

    by jimtheowl (5929) on Tuesday October 17 2017, @04:22PM (#583520)

    Trading with the US has always been difficult, but although the current administration portrays themselves as a deal makers, they are basically cutting themselves off the rest of the world.

    That 300% tariff was pure muscle flexing from the US on behalf of Boeing, which doesn't even offer a competing product in that class.
    • (Score: 0) by Anonymous Coward on Tuesday October 17 2017, @07:21PM

      by Anonymous Coward on Tuesday October 17 2017, @07:21PM (#583608)

      Brexit + WTO + USA FTW!!!!!!

    • (Score: 2) by realDonaldTrump on Tuesday October 17 2017, @09:17PM

      by realDonaldTrump (6614) on Tuesday October 17 2017, @09:17PM (#583669) Homepage Journal

      Our companies are bringing #jobs back to America, I call it reshoring. The factory that Airbus and Bombardier are building in Alabama is a beautiful example. 🇺🇸

    • (Score: 2) by davester666 on Wednesday October 18 2017, @05:12AM

      by davester666 (155) on Wednesday October 18 2017, @05:12AM (#583814)

      They may be portraying themselves as deal-makers, so far, they have pretty much only been deal breakers. It's been "I don't like what other people have accomplished, so I will destroy their work". Pretty much none of "Here's my idea and here's why it's better than before."

    • (Score: 2) by terryk30 on Wednesday October 18 2017, @03:56PM

      by terryk30 (1753) on Wednesday October 18 2017, @03:56PM (#583988)

      Does anyone ever trade in things w. that level of tariff? Isn't 300% an embargo in everything but name?

  • (Score: 0) by Anonymous Coward on Tuesday October 17 2017, @04:23PM (6 children)

    by Anonymous Coward on Tuesday October 17 2017, @04:23PM (#583521)

    Bombardier is a special Canadian company that blackmails money from Canadian people. It never makes any money, just gets government grants and payouts. Any time a division looks like it might possibly be successful and actually make a profit, that division is sold or disbanded. Trouble with Quebec? Bombardier will be the first to tell you that more public money in aerospace tech will tame the French. Bombardier wouldn't last a month without guzzling tax dollars.

    • (Score: 4, Interesting) by bob_super on Tuesday October 17 2017, @04:31PM (4 children)

      by bob_super (1357) on Tuesday October 17 2017, @04:31PM (#583525)

      Sometimes, providing jobs and keeping a specific manufacturing capability is more important than making raw profit.

      • (Score: 2) by Snow on Tuesday October 17 2017, @04:53PM (1 child)

        by Snow (1601) on Tuesday October 17 2017, @04:53PM (#583535) Journal

        You gotta wonder though... Would they get the same treatment if they were located anywhere other than Quebec?

        • (Score: 2) by jimtheowl on Tuesday October 17 2017, @05:49PM

          by jimtheowl (5929) on Tuesday October 17 2017, @05:49PM (#583568)
          Yes it would. Why do you think Quebec matters as opposed to Canada as a whole?

          Hint: This is happening while NAFTA is being re-negotiated.
      • (Score: 5, Informative) by Anonymous Coward on Tuesday October 17 2017, @05:01PM

        by Anonymous Coward on Tuesday October 17 2017, @05:01PM (#583541)

        Sometimes, providing jobs and keeping a specific manufacturing capability is more important than making raw profit.

        Except Bombardier is profitable. It has low margins, but it actually makes stuff, substantial stuff. And it receives hell of a lot less government subsidies than Boeing does.

        http://spacenews.com/u-s-air-force-looks-at-ending-ulas-launch-capability-payment/ [spacenews.com]

        ^^ that is a thorn in Boeing ass right there. Space X.

        And let's not forget, https://www.washingtonpost.com/blogs/govbeat/wp/2015/03/17/the-united-states-of-subsidies-the-biggest-corporate-winners-in-each-state/ [washingtonpost.com]

        On a mid-November Monday, Washington Gov. Jay Inslee (D) signed into law the largest corporate tax break in any state’s history, with an estimated lifetime value of $8.7 billion. The package was the result of a special three-day session Inslee called in order to entice Boeing to build its 777X plane in the state. Boeing didn’t just score big that day. The aerospace giant has received more state and local subsidy dollars than any other corporation in America

        If Boeing wants a trade war, then where does it end? Maybe banning Boeing planes from other nations airspace? Are we heading in that direction?

      • (Score: 0) by Anonymous Coward on Tuesday October 17 2017, @08:54PM

        by Anonymous Coward on Tuesday October 17 2017, @08:54PM (#583653)

        Sometimes taxing the crap out of Joe Average and giving his/hers hard-earned money to CEOs and political insiders is most important of all.

    • (Score: 1) by snmygos on Wednesday October 18 2017, @06:03AM

      by snmygos (6274) on Wednesday October 18 2017, @06:03AM (#583819)

      Bombardier will be the first to tell you that more public money in aerospace tech will tame the French.

      They are canadians.

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