Boe­ing says trade com­plaint de­signed to pre­vent larger CSeries

Cape Breton Post - - Business -

MON­TREAL — Boe­ing says its trade com­plaint against Bom­bardier is de­signed to pre­vent the Mon­treal-based ri­val from us­ing sub­si­dies to pro­duce a larger ver­sion of the CSeries plane that would di­rectly com­pete with its own flag­ship nar­row­body 737 air­craft.

Last week, Boe­ing filed a doc­u­ment with the U.S. In­ter­na­tional Trade Com­mis­sion that sheds new light on the trade dis­pute be­tween the two aerospace man­u­fac­tur­ers.

In the 109-page fil­ing, Boe­ing says Bom­bardier would be po­si­tioned to build a full fleet of sin­gleaisle planes - re­peat­ing a strat­egy em­ployed by French aerospace com­pany Air­bus - if Cana­dian sub­si­dies to Bom­bardier are left un­ad­dressed. Bom­bardier (TSX:BBD.B) says in a sep­a­rate fil­ing that Boe­ing’s ef­fort to shut down its in­no­va­tive tech­nol­ogy from the market is “mis­guided,” adding that Boe­ing’s com­plaint is tan­ta­mount to ask­ing the U.S. In­ter­na­tional Trade Com­mis­sion to imag­ine a hy­po­thet­i­cal world in the fu­ture.

The com­pany says its CSeries com­mer­cial jet isn’t an im­mi­nent threat to Boe­ing be­cause the first planes won’t be de­liv­ered to Delta for an­other year, Boe­ing doesn’t sell a com­pa­ra­ble prod­uct and Boe­ing’s pro­duc­tion is sold out for about eight years.

A pre­lim­i­nary de­ter­mi­na­tion on the pe­ti­tion is ex­pected by June 12.

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