The U.S. Department of Commerce Department finalized duties of up to 300% on sales of Bombardier CSeries aircraft, following hearings this week, and upholding its finding that a 2016 sale of at least 75 of the narrow-body jets to Delta Air Lines comprised an unfair trade practice. The federal International Trade Commission affirmed that position in October.
The charge was brought by Boeing Co., which claims it was injured by the 2016 sale, and an ITC ruling on that matter, expected in February, may increase the penalty on Bombardier.
Boeing stated the decision validated its complaints about Bombardier's aircraft pricing in the United States, “pricing that has harmed our workforce and U.S. industry".
The Bombardier CSeries jets are narrow-body commercial aircraft for medium-range routes, a category also served by Boeing with its 737 series and Airbus with the A320 series. In the progress of the trade dispute, Bombardier agreed to sell a majority interest in the CSeries program to Airbus, intensifying the completion in that product category for Boeing.
Delta has not yet taken delivery of the CSeries jets, so it has not paid the import duties.
In a response the Commerce decision, Bombardier stated: “The evidence presented Monday at the U.S. International Trade Commission demonstrated that Boeing’s petition is an unfounded assault on airlines, the flying public, and the U.S. aerospace industry. That has been true since the start of the investigation, and recent developments make it even clearer, particularly the Bombardier and Airbus partnership, which will include the construction of a new U.S. manufacturing facility in Alabama. This facility will provide U.S. airlines with a U.S.-built plane thereby eliminating any possibility of harm due to imports.”
The Canadian firm also commented that Boeing and Commerce failed to acknowledge “long-standing business practices in the aerospace industry, including launch pricing and the financing of multibillion dollar aircraft programs.”