Tag: Bombardier

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Boeing and Embraer forge $4.75B jet venture

Boeing and Embraer jets
The Boeing-Embraer deal would add regional jets such as Embraer’s E190-E2 to a lineup that also includes Boeing’s 737 MAX 7 and larger jets. (Embraer Illustration)

After months of negotiations, Boeing and Brazilian jetmaker Embraer today announced a tentative agreement to form a $4.75 billion joint venture that would bring Embraer’s small-size commercial aircraft operations firmly into Boeing’s fold.

The arrangement is a strategic parry to last year’s move by Boeing’s European archrival, Airbus, to partner with Canada’s Bombardier on small-size jets.

Embraer’s engineering expertise could also come into play as Boeing gears up to design and produce a new breed of midsize jet variously known as the New Mid-Market Airplane, NMA or 797.

“This important partnership clearly aligns with Boeing’s long-term strategy of investing in organic growth and returning value to shareholders, complemented by strategic arrangements that enhance and accelerate our growth plans,” Dennis Muilenburg, Boeing’s chairman, president and CEO, said today in a news release.

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U.S. trade panel bats down Bombardier jet tariff

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Sales of Bombardier’s CS100 jet won’t be hit by tariffs after all. (Bombardier Photo / Patrick Cardinal)

Canadian airplane maker Bombardier scored an unexpected victory today over Boeing when the U.S. International Trade Commission unanimously rejected a plan to levy a 292 percent tariff on the company’s U.S. sales.

In a statement, the commission said it determined that U.S. industry “is not materially injured or threatened with material injury” by imports of Bombardier’s 100- to 150-seat CSeries jets.

That runs counter to Boeing’s claim that Bombardier’s Canadian government subsidies would threaten its sales of 737 jets. The U.S. Commerce Department sided with Boeing and called for the tariff, but it was up to the ITC to approve the penalty.

The decision suggests that Bombardier’s multibillion-dollar sale of up to 125 single-aisle CS100 jets to Delta Air Lines, announced last April, will go forward.

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Boeing-Embraer talks add a twist to trade battle

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Embraer’s E195-E2 jet competes with Bombardier’s CS100. (Embraer Photo)

Boeing and Embraer, a Brazilian regional-jet manufacturer, today confirmed that they’re discussing a “potential combination” in the wake of a Wall Street Journal report suggesting that Boeing was looking into acquiring the company,

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Boeing vs. Bombardier battle enters next phase

The U.S. Commerce Department says its tariffs on imported Canadian jets will add up to 292.21 percent, marking another escalation in a trade battle involving Boeing and Canada’s Bombardier.

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Airbus-Bombardier deal complicates jet dispute

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An artist’s conception puts Bombardier’s CS100 jet alongside Airbus’ A320neo. (Airbus Illustration)

Airbus added a twist to a U.S.-Canada trade dispute by announcing a plan to partner up with Bombardier, the Boeing Co.’s Canadian rival.

The plan calls for Airbus to take on a majority stake in Bombardier’s C Series line of passenger jets, which is due to be hit by U.S. tariffs of nearly 300 percent.

Europe-based Airbus will own 50.01 percent of the C Series limited partnership, leaving Bombardier with about 31 percent and Investissement Quebec with 19 percent. The partnership’s headquarters and primary assembly line will remain in Quebec, but Airbus said it would expand C Series production to its manufacturing site in Alabama.

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U.S. officials slap 220% tariff on Canadian jets

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An artist’s conception shows Bombardier’s CS100 jet in Delta Air Lines’ livery. (Delta Illustration)

The U.S. Commerce Department today issued a preliminary finding that Canada’s Bombardier aircraft company was getting unfair subsidies for its CSeries jets — and laid out a plan that would more than triple the cost of the jets being bought by Delta Air Lines.

As a result of the ruling, the importers of Canadian civil aircraft with a capacity of 100 to 150 seats would have to pay a 219.63 percent tariff.

The ruling sides with Boeing, which filed a petition complaining that Bombardier’s sale of 75 CS100 jets to Delta was being subsidized by the governments of Canada as well as Britain. Bombardier is based in Montreal, but its wings are built in Northern Ireland.

“The U.S. values its relationships with Canada, but even our closest allies must play by the rules,” Commerce Secretary Wilbur Ross said in a statement. “The subsidization of goods by foreign governments is something that the Trump administration takes very seriously, and we will continue to evaluate and verify the accuracy of this preliminary determination.”

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